10-QPeriod: Q2 FY2026

W.W. GRAINGER, INC. Quarterly Report for Q2 Ended Jun 30, 2026

Filed August 4, 2026For Securities:GWW

Summary

W.W. Grainger, Inc. (GWW) reported strong financial performance for the second quarter and first half of 2026, exceeding prior-year results across key metrics. Net sales saw a significant increase of 10.3% for the quarter and 10.2% for the first half, driven by robust growth in both the High-Touch Solutions N.A. and Endless Assortment segments. This top-line growth translated into substantial improvements in profitability, with operating earnings rising 19.0% for the quarter and 18.5% for the first half. Diluted earnings per share also showed impressive gains, increasing by 20.5% for the quarter and 19.3% for the first half. The company's financial health remains solid, supported by healthy operating cash flows and a strong liquidity position. While facing macroeconomic uncertainties, Grainger's diversified customer base and the essential nature of its MRO products provide resilience. Management remains focused on executing strategic priorities, including investing in the business and returning capital to shareholders through dividends and share repurchases.

Key Highlights

  • 1Net sales increased by 10.3% to $5.02 billion for the three months ended June 30, 2026, and by 10.2% to $9.76 billion for the six months ended June 30, 2026, compared to the respective prior-year periods.
  • 2Operating earnings grew significantly by 19.0% to $807 million for the three months and 18.5% to $1.60 billion for the six months ended June 30, 2026.
  • 3Diluted earnings per share (EPS) rose by 20.5% to $12.01 for the quarter and 19.3% to $23.66 for the first half of 2026, demonstrating strong profit translation.
  • 4Gross profit margin improved to 39.5% for the quarter and 39.7% for the first half of 2026, up from 38.5% and 39.1% respectively in the prior year periods.
  • 5Both key segments, High-Touch Solutions N.A. and Endless Assortment, contributed to the strong sales growth, with Endless Assortment showing a particularly strong increase of 13.5% in the quarter and 16.3% in the first half on a reported basis.
  • 6The company generated $1.18 billion in cash from operating activities for the first half of 2026, an increase from $1.02 billion in the prior year, indicating robust cash generation.
  • 7Grainger maintained a strong liquidity position with approximately $1.8 billion in available liquidity as of June 30, 2026.

Frequently Asked Questions

The increase in net sales was driven by strong performance across both the High-Touch Solutions N.A. and Endless Assortment segments. On a daily, organic constant currency basis, net sales increased by 13.7% for the quarter and 12.9% for the first half of 2026, indicating broad-based operational growth beyond currency fluctuations and divestitures.

While Selling, General, and Administrative (SG&A) expenses increased by 9.3% for the quarter and 7.8% for the first half, this growth was outpaced by the respective sales increases of 10.3% and 10.2%. This indicates effective cost management, leading to operating leverage and a significant increase in operating earnings.

Grainger believes its current cash and cash equivalents, marketable securities, and revolving credit facility provide sufficient liquidity for the next twelve months. The company plans to fund future investments and return capital to shareholders through operating cash flows and may access capital markets if needed.

The company acknowledges ongoing macroeconomic volatility, including inflation, commodity and transportation costs, and geopolitical developments. However, management believes Grainger's strategy and the non-discretionary nature of its MRO products provide a degree of resilience against these uncertainties.