10-QPeriod: Q1 FY2026

W.W. GRAINGER, INC. Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 7, 2026For Securities:GWW

Summary

W.W. Grainger, Inc. reported a strong first quarter for fiscal year 2026, with net sales increasing by 10.1% to $4.74 billion compared to the same period in 2025. This growth was driven by both the High-Touch Solutions N.A. and Endless Assortment segments, with daily, organic constant currency net sales up 12.2%. Net earnings attributable to W.W. Grainger, Inc. rose 15.9% to $555 million, resulting in a diluted earnings per share of $11.65, an 18.2% increase year-over-year. The company demonstrated improved operating leverage, with operating earnings increasing by 18.0%. Despite macroeconomic volatility and uncertainty, Grainger's business model, characterized by a diverse customer base and the generally non-discretionary nature of its MRO products, has shown resilience. The company maintained a healthy liquidity position, with cash and cash equivalents of $695 million and available liquidity of approximately $1.9 billion. Management expects these resources, along with cash generated from operations, to be sufficient for the next twelve months, supporting continued investment in the business and returns to shareholders through dividends and share repurchases.

Financial Highlights

50 data points
Beta

Revenue

$4.74B

40.0% Gross Margin

Net Income

$555.00M

11.7% Net Margin

EPS (Diluted)

$11.65

Total Assets

$9.47B

Cash & Equivalents

$695.00M

Free Cash Flow

$569.00M

Financial Statements
Beta
Revenue$4.74B
Cost of Revenue$2.85B
Gross Profit$1.90B
SG&A Expenses$1.10B
Operating Income$793.00M
Net Income$555.00M
EPS (Basic)$11.67
EPS (Diluted)$11.65
Shares Outstanding (Basic)47.30M
Shares Outstanding (Diluted)47.40M

Key Highlights

  • 1Net sales grew 10.1% to $4.74 billion in Q1 2026 compared to Q1 2025.
  • 2Diluted Earnings Per Share (EPS) increased by 18.2% to $11.65.
  • 3Operating earnings saw a significant increase of 18.0%, indicating improved operational efficiency.
  • 4Both High-Touch Solutions N.A. and Endless Assortment segments contributed to sales growth.
  • 5The company maintained strong liquidity with $695 million in cash and cash equivalents and $1.9 billion in available liquidity.
  • 6Capital expenditures increased to $178 million, primarily for supply chain investments in MonotaRO.
  • 7Shareholders received $108 million in cash dividends, reflecting a commitment to returning capital.

Frequently Asked Questions

Net sales increased by 10.1% to $4.74 billion, driven by growth in both the High-Touch Solutions N.A. and Endless Assortment segments. On a daily, organic constant currency basis, net sales increased by 12.2%, indicating strong underlying business performance and favorable pricing.

Profitability improved significantly. Gross profit increased by 10.9% to $1.90 billion, and operating earnings grew by 18.0% to $793 million. This strong operating leverage led to a 15.9% increase in net earnings attributable to W.W. Grainger, Inc., reaching $555 million, with diluted EPS rising 18.2% to $11.65.

Grainger maintained a strong liquidity position with $695 million in cash and cash equivalents and approximately $1.9 billion in available liquidity as of March 31, 2026. Net cash provided by operating activities increased to $739 million, up from $646 million in the prior year, reflecting higher net earnings. The company anticipates sufficient resources for the next twelve months and plans to continue investing in its business and returning cash to shareholders.

The report acknowledges elevated global economic volatility and uncertainty, including challenges in commodity, labor, and transportation markets, as well as geopolitical developments and potential impacts from changing tariff and trade policies. However, management believes Grainger's strategy and the non-discretionary nature of its MRO products provide resilience.