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W.W. Grainger Reports Impressive Second Quarter Performance

On August 4, 2026, W.W. Grainger, Inc. (NYSE: GWW) announced its second quarter financial results, revealing continued growth across its business operations. The company achieved remarkable sales of $5.0 billion, representing a 10.3% increase compared to the same period in 2025.

Key Highlights

During the second quarter, Grainger reported:

• - Sales of $5.0 billion, a 10.3% increase, and 13.7% growth on a daily, organic constant currency basis.
• - An operating margin of 16.1%, up 120 basis points driven by strong cost management and pricing strategies.
• - Diluted earnings per share (EPS) reaching $12.01, marking a 20.5% increase year-over-year.
• - Operating cash flow of $444 million, with $341 million returned to shareholders through dividends and stock repurchase programs.

The strong performance prompted the company to revise its full-year 2026 guidance, now projecting diluted adjusted EPS between $45.50 and $47.25.

Leadership Comments

D.G. Macpherson, Grainger's Chairman and CEO, expressed satisfaction with the quarterly results stating, "Despite ongoing geopolitical uncertainties, we executed well during the second quarter and delivered exceptional service to customers. Sales remained robust, and core operating profitability was as expected."

Financial Breakdown

In the second quarter, Grainger saw significant revenue growth across its segments:

• - The High-Touch Solutions - North America segment reported a sales increase of 11.9%, underscoring the effectiveness of its volume growth and pricing strategies.
• - The Endless Assortment segment thrived with a 13.5% increase in sales, fueled by robust performances from MonotaRO and Zoro.

The company’s gross profit margin improved to 39.5%, up 100 basis points year-over-year. This upswing was attributed to successful pricing strategies and the benefits of tariff refunds from the IEEPA, which positively affected costs.

Operating earnings also reflected growth, totaling $807 million, an increase of 19.0% compared to the previous year. The improved operating margin was a result of higher gross margins and effective sales leverage.

Investment and Shareholder Returns

During the second quarter, Grainger invested $111 million in capital expenditures, yielding a free cash flow of $333 million. The company actively returned value to shareholders with $341 million distributed through dividends and share repurchases, highlighting its commitment to delivering shareholder returns while pursuing growth strategies.

Updated Guidance for 2026

Reflecting the company’s strong performance and market momentum, Grainger has updated its full-year sales guidance from $19.2 billion - $19.6 billion to $19.4 billion - $19.7 billion, anticipating an annual sales growth of between 8.4% and 10.0%.

Conclusion

While facing challenges in the current market climate, Grainger has demonstrated resilience and adaptability in maintaining robust sales and profitability. As the company positions itself for continued success in 2026 and beyond, stakeholders remain optimistic about its growth potential and strategic investments in customer service and product offerings. For further insights into Grainger's financial performance and updates, stakeholders can join the live conference call hosted by company executives, which will discuss these results in more detail.

For additional information about W.W. Grainger and its impressive operations, visit www.grainger.com.