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Why Is W.W. Grainger (GWW) Down 0% Since Last Earnings Report?
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A month has gone by since the last earnings report for W.W. Grainger (GWW - Free Report) . Shares have lost about 0% in that time frame, outperforming the S&P 500.
Will the recent trend continue leading up to its next earnings release, or is W.W. Grainger due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for W.W. Grainger, Inc. before we dive into how investors and analysts have reacted as of late.
Grainger Beats Q2 Earnings Estimates on Margin Gains, Raises Outlook
Grainger reported second-quarter 2026 earnings of $12.01 per share, up 20.5% year over year. The figure beat the Zacks Consensus Estimate of $11.28 by 6.47%, aided by strong sales growth, and wider gross and operating margins.
Quarterly sales increased 10.3% year over year to $5.02 billion and surpassed the consensus estimate of $4.95 billion by 1.35%. Daily sales advanced 10.3%, reflecting solid momentum across both operating segments. We predicted daily sales to increase 8.5%.
On a daily, organic constant currency basis, sales increased 13.7%. The comparison adjusts for foreign currency movements and the company’s exit from the U.K. market, including the divested Cromwell business and closed Zoro U.K. operations.
Grainger’s Q2 Segmental Performance
The High-Touch Solutions N.A. segment’s daily sales rose 11.9% year over year in the second quarter of 2026, reflecting strong volume growth and a healthy contribution from pricing. The Endless Assortment segment’s daily sales grew 13.5% year over year in the quarter, supported by strong performances at MonotaRO and Zoro.
GWW Expands Profitability in Q2
Gross profit increased 13% year over year to $1.98 billion. The gross margin expanded 100 basis points to 39.5%, supported by improvement in both segments and benefits related to the U.K. market exit.
The quarter included $43 million in refunds on IEEPA tariffs for products directly imported by Grainger. These refunds reduced the cost of goods sold and provided a roughly 90-basis-point benefit to the gross margin. The cost of sales came in at $3.04 billion, 8.5% year over year.
Selling, general and administrative expenses rose 9.3% to $1.18 billion. Grainger’s operating earnings in the quarter increased 19% year over year to $807 million. The operating margin came in at 16.1% compared with 14.9% in the prior-year quarter.
Grainger Generates Solid Cash Flow
The company had cash and cash equivalents of $589 million as of June 30, 2026, compared with $585 million at the end of 2025. The cash flow from operating activities was $1.18 billion in the first six months of 2026 compared with $1.02 billion in the prior-year period.
Long-term debt was $2.41 billion as of June 30, 2026, compared with $2.36 billion as of Dec. 31, 2025. Grainger returned $341 million to shareholders through dividends and share repurchases during the quarter.
GWW Raises Its 2026 Outlook
Grainger raised its 2026 net sales guidance to $19.4-$19.7 billion from $19.2-$19.6 billion. The company expects reported sales growth of 8.4-10% from the prior mentioned 6.7-9.1%.
The adjusted earnings guidance was increased to $45.50-$47.25 per share from $44.25-$46.25. Grainger also raised its operating margin outlook to 15.8-16.2% and the gross margin forecast to 39.3-39.6%. The updated outlook reflects strong first-half execution, improving MRO market demand and better top-line leverage.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, W.W. Grainger has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, W.W. Grainger has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
View the Zacks #1 Rank List
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Why Is W.W. Grainger (GWW) Down 0% Since Last Earnings Report?
A month has gone by since the last earnings report for W.W. Grainger (GWW - Free Report) . Shares have lost about 0% in that time frame, outperforming the S&P 500.
Will the recent trend continue leading up to its next earnings release, or is W.W. Grainger due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for W.W. Grainger, Inc. before we dive into how investors and analysts have reacted as of late.
Grainger Beats Q2 Earnings Estimates on Margin Gains, Raises Outlook
Grainger reported second-quarter 2026 earnings of $12.01 per share, up 20.5% year over year. The figure beat the Zacks Consensus Estimate of $11.28 by 6.47%, aided by strong sales growth, and wider gross and operating margins.
Quarterly sales increased 10.3% year over year to $5.02 billion and surpassed the consensus estimate of $4.95 billion by 1.35%. Daily sales advanced 10.3%, reflecting solid momentum across both operating segments. We predicted daily sales to increase 8.5%.
On a daily, organic constant currency basis, sales increased 13.7%. The comparison adjusts for foreign currency movements and the company’s exit from the U.K. market, including the divested Cromwell business and closed Zoro U.K. operations.
Grainger’s Q2 Segmental Performance
The High-Touch Solutions N.A. segment’s daily sales rose 11.9% year over year in the second quarter of 2026, reflecting strong volume growth and a healthy contribution from pricing. The Endless Assortment segment’s daily sales grew 13.5% year over year in the quarter, supported by strong performances at MonotaRO and Zoro.
GWW Expands Profitability in Q2
Gross profit increased 13% year over year to $1.98 billion. The gross margin expanded 100 basis points to 39.5%, supported by improvement in both segments and benefits related to the U.K. market exit.
The quarter included $43 million in refunds on IEEPA tariffs for products directly imported by Grainger. These refunds reduced the cost of goods sold and provided a roughly 90-basis-point benefit to the gross margin. The cost of sales came in at $3.04 billion, 8.5% year over year.
Selling, general and administrative expenses rose 9.3% to $1.18 billion. Grainger’s operating earnings in the quarter increased 19% year over year to $807 million. The operating margin came in at 16.1% compared with 14.9% in the prior-year quarter.
Grainger Generates Solid Cash Flow
The company had cash and cash equivalents of $589 million as of June 30, 2026, compared with $585 million at the end of 2025. The cash flow from operating activities was $1.18 billion in the first six months of 2026 compared with $1.02 billion in the prior-year period.
Long-term debt was $2.41 billion as of June 30, 2026, compared with $2.36 billion as of Dec. 31, 2025. Grainger returned $341 million to shareholders through dividends and share repurchases during the quarter.
GWW Raises Its 2026 Outlook
Grainger raised its 2026 net sales guidance to $19.4-$19.7 billion from $19.2-$19.6 billion. The company expects reported sales growth of 8.4-10% from the prior mentioned 6.7-9.1%.
The adjusted earnings guidance was increased to $45.50-$47.25 per share from $44.25-$46.25. Grainger also raised its operating margin outlook to 15.8-16.2% and the gross margin forecast to 39.3-39.6%. The updated outlook reflects strong first-half execution, improving MRO market demand and better top-line leverage.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, W.W. Grainger has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, W.W. Grainger has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.