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Grainger Beats Earnings Estimates in Q3, Hikes '26 Guidance
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Key Takeaways
GWW's Q3 adjusted EPS rose 22.8% y/y to $12.54, beating estimates on strong demand and operating leverage.
High-Touch Solutions and Endless Assortment daily organic sales grew 13.8% and 19.3%, respectively.
Grainger raised 2026 sales guidance to $19.8-$20B from $19.4-$19.7B.
W.W. Grainger, Inc. (GWW - Free Report) has reported adjusted third-quarter 2026 earnings of $12.54 per share, up 22.8% year over year. The figure surpassed the Zacks Consensus Estimate of $11.64, supported by robust demand, operating leverage and a lower effective tax rate.
Quarterly sales increased 11.3% year over year to $5.2 billion and surpassed the Zacks Consensus Estimate of $5.1 billion by 2.5%. Daily sales advanced 11.3%, reflecting strong growth across both operating segments. On a daily, organic constant-currency basis, sales advanced 14.9% year over year, reflecting strength across its High-Touch Solutions and Endless Assortment businesses.
W.W. Grainger, Inc. Price, Consensus and EPS Surprise
The High-Touch Solutions N.A. segment’s organic daily sales rose 13.8% year over year in the third quarter of 2026, reflecting double-digit volume growth and a healthy contribution from pricing. Our model predicted year-over-year organic daily sales growth of 3.9%.
The Endless Assortment segment’s organic daily sales grew 19.3% year over year in the quarter, supported by strong performances at MonotaRO and Zoro. Our model predicted organic daily sales growth of 11.3% for the quarter.
GWW Expands Profitability in Q3
The cost of sales came in at $3.17 billion, up 10.9% year over year. Gross profit increased 11.8% year over year to $2.01 billion. The gross margin expanded 20 basis points to 38.8%, supported by improvement in the Endless Assortment segment and benefits related to the company's exit from the U.K. market.
Adjusted selling, general and administrative expenses rose 7.7% to $1.18 billion. Grainger's adjusted operating earnings in the quarter increased 18.2% year over year to $836 million. The adjusted operating margin came in at 16.1% compared with 15.2% in the prior-year quarter.
Grainger Generates Solid Cash Flow
The company had cash and cash equivalents of $768 million as of Sept. 30, 2026, compared with $585 million at the end of 2025. The cash flow from operating activities was $1.84 billion in the first nine months of 2026 compared with $1.62 billion in the prior-year period.
Long-term debt was $2.46 billion as of Sept. 30, 2026, compared with $2.36 billion as of Dec. 31, 2025. Grainger returned $396 million to shareholders through dividends and share repurchases during the quarter.
Grainger Raises Its 2026 Earnings Outlook
The company increased its 2026 sales forecast to $19.8-$20 billion from $19.4-$19.7 billion. The updated guidance implies sales growth of 10.1-11.6%, with daily, organic constant-currency sales expected to increase 13-14.5%.
Grainger raised adjusted earnings guidance to $47.00-$48.00 per share from $45.50-$47.25. It also lifted its adjusted operating margin outlook to 16-16.2% from 15.8-16.2% and operating cash flow guidance to $2.35-$2.45 billion from $2.25-$2.40 billion.
Grainger Stock’s Price Performance
In the past year, GWW shares have gained 46.3% compared with the industry’s growth of 11.2%.
MSC Industrial Direct Company, Inc. (MSM - Free Report) reported adjusted earnings per share of $1.45 for the fourth quarter of fiscal 2026, beating the Zacks Consensus Estimate of $1.39. The bottom line increased from the year-ago quarter’s adjusted earnings of $1.09 per share. MSC Industrial’s net sales were $1.08 billion, surpassing the consensus estimate of $1.05 billion. The company posted sales of $0.98 billion in the year-ago quarter.
SiteOne Landscape Supply, Inc. (SITE - Free Report) delivered third-quarter earnings of $1.46 per share, beating the Zacks Consensus Estimate of $1.37. SITE posted earnings of $1.31 in the year-ago quarter. SiteOne Landscape posted sales of $1.291 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate of $1.286 billion. The company posted sales of $1.26 billion in the year-ago quarter.
Hudson Technologies, Inc. (HDSN - Free Report) posted third-quarter earnings of 5 cents per share, missing the Zacks Consensus Estimate of 11 cents. The company posted earnings of 27 cents per share a year ago. Hudson Industrial posted sales of $59 million for the quarter ended September 2026, missing the Zacks Consensus Estimate of $79 million. The company posted sales of $74 million in third-quarter 2025.
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Grainger Beats Earnings Estimates in Q3, Hikes '26 Guidance
Key Takeaways
W.W. Grainger, Inc. (GWW - Free Report) has reported adjusted third-quarter 2026 earnings of $12.54 per share, up 22.8% year over year. The figure surpassed the Zacks Consensus Estimate of $11.64, supported by robust demand, operating leverage and a lower effective tax rate.
Quarterly sales increased 11.3% year over year to $5.2 billion and surpassed the Zacks Consensus Estimate of $5.1 billion by 2.5%. Daily sales advanced 11.3%, reflecting strong growth across both operating segments. On a daily, organic constant-currency basis, sales advanced 14.9% year over year, reflecting strength across its High-Touch Solutions and Endless Assortment businesses.
W.W. Grainger, Inc. Price, Consensus and EPS Surprise
W.W. Grainger, Inc. price-consensus-eps-surprise-chart | W.W. Grainger, Inc. Quote
Grainger’s Q3 Segmental Performance
The High-Touch Solutions N.A. segment’s organic daily sales rose 13.8% year over year in the third quarter of 2026, reflecting double-digit volume growth and a healthy contribution from pricing. Our model predicted year-over-year organic daily sales growth of 3.9%.
The Endless Assortment segment’s organic daily sales grew 19.3% year over year in the quarter, supported by strong performances at MonotaRO and Zoro. Our model predicted organic daily sales growth of 11.3% for the quarter.
GWW Expands Profitability in Q3
The cost of sales came in at $3.17 billion, up 10.9% year over year. Gross profit increased 11.8% year over year to $2.01 billion. The gross margin expanded 20 basis points to 38.8%, supported by improvement in the Endless Assortment segment and benefits related to the company's exit from the U.K. market.
Adjusted selling, general and administrative expenses rose 7.7% to $1.18 billion. Grainger's adjusted operating earnings in the quarter increased 18.2% year over year to $836 million. The adjusted operating margin came in at 16.1% compared with 15.2% in the prior-year quarter.
Grainger Generates Solid Cash Flow
The company had cash and cash equivalents of $768 million as of Sept. 30, 2026, compared with $585 million at the end of 2025. The cash flow from operating activities was $1.84 billion in the first nine months of 2026 compared with $1.62 billion in the prior-year period.
Long-term debt was $2.46 billion as of Sept. 30, 2026, compared with $2.36 billion as of Dec. 31, 2025. Grainger returned $396 million to shareholders through dividends and share repurchases during the quarter.
Grainger Raises Its 2026 Earnings Outlook
The company increased its 2026 sales forecast to $19.8-$20 billion from $19.4-$19.7 billion. The updated guidance implies sales growth of 10.1-11.6%, with daily, organic constant-currency sales expected to increase 13-14.5%.
Grainger raised adjusted earnings guidance to $47.00-$48.00 per share from $45.50-$47.25. It also lifted its adjusted operating margin outlook to 16-16.2% from 15.8-16.2% and operating cash flow guidance to $2.35-$2.45 billion from $2.25-$2.40 billion.
Grainger Stock’s Price Performance
In the past year, GWW shares have gained 46.3% compared with the industry’s growth of 11.2%.
GWW’s Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Grainger’s Peer Performances
MSC Industrial Direct Company, Inc. (MSM - Free Report) reported adjusted earnings per share of $1.45 for the fourth quarter of fiscal 2026, beating the Zacks Consensus Estimate of $1.39. The bottom line increased from the year-ago quarter’s adjusted earnings of $1.09 per share. MSC Industrial’s net sales were $1.08 billion, surpassing the consensus estimate of $1.05 billion. The company posted sales of $0.98 billion in the year-ago quarter.
SiteOne Landscape Supply, Inc. (SITE - Free Report) delivered third-quarter earnings of $1.46 per share, beating the Zacks Consensus Estimate of $1.37. SITE posted earnings of $1.31 in the year-ago quarter. SiteOne Landscape posted sales of $1.291 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate of $1.286 billion. The company posted sales of $1.26 billion in the year-ago quarter.
Hudson Technologies, Inc. (HDSN - Free Report) posted third-quarter earnings of 5 cents per share, missing the Zacks Consensus Estimate of 11 cents. The company posted earnings of 27 cents per share a year ago. Hudson Industrial posted sales of $59 million for the quarter ended September 2026, missing the Zacks Consensus Estimate of $79 million. The company posted sales of $74 million in third-quarter 2025.