W.W. Grainger reported second-quarter 2026 results with net sales of $5.02 billion and diluted EPS of $12.01, increases of 10.3% and 20.5% respectively versus Q2 2025. The company achieved a 16.1% operating margin (up 120 basis points) and generated $444 million in operating cash flow while returning $341 million to shareholders. Grainger raised its full-year 2026 guidance, including updated diluted adjusted EPS of $45.50 to $47.25.
Financial Highlights
- Net sales: $5,021 million in Q2 2026, up 10.3% versus Q2 2025.
- Gross profit: $1,984 million; gross profit margin: 39.5% (up 100 bps year-over-year).
- Operating earnings: $807 million; operating margin: 16.1% (up 120 bps year-over-year).
- Net earnings attributable to W.W. Grainger: $570 million; diluted EPS: $12.01.
- Operating cash flow: $444 million for the quarter; free cash flow: $333 million; returned $341 million to shareholders via dividends and share repurchases.
Business Highlights
- Daily, organic constant currency sales growth of 13.7% year-over-year after adjusting for U.K. exit and FX impacts.
- High-Touch Solutions - N.A. segment: sales up 11.9% (11.7% on a daily, constant currency basis), driven by volume growth and price inflation as tariff costs are passed.
- Endless Assortment segment: sales up 13.5% (20.6% on a daily, organic constant currency basis), led by strong performance at MonotaRO and Zoro.
- Gross margin benefited from refunds recognized on IEEPA tariffs for products directly imported by Grainger, reducing cost of goods sold by $43 million, and from the company's exit from the U.K. market.
- Company updated 2026 operational guidance: raising net sales and daily organic constant currency growth ranges and maintaining an effective tax rate near ~25.0%.
Original SEC Filing:
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