W.W. Grainger, Inc. (GWW) Earnings
W.W. Grainger, Inc. is expected to report next earnings on August 4, 2026 (in NaN days), with a consensus EPS estimate of $11.22. GWW has beaten EPS estimates in 7 of its last 12 reported quarters (average surprise +3.8% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $10.21 | $11.65 | +14.1% | $4.7B | +3.6% |
| Feb 3, 2026 | $9.46 | $9.44 | -0.2% | $4.4B | +0.6% |
| Oct 31, 2025 | $9.98 | $10.21 | +2.3% | $4.7B | +0.3% |
| Aug 1, 2025 | $10.07 | $9.97 | -1.0% | $4.6B | +0.6% |
| May 1, 2025 | $9.48 | $9.86 | +4.0% | $4.3B | -0.3% |
| Jan 31, 2025 | $9.74 | $9.71 | -0.3% | $4.2B | -0.2% |
| Oct 31, 2024 | $9.97 | $9.87 | -1.0% | $4.4B | -0.3% |
| Aug 1, 2024 | $9.58 | $9.76 | +1.9% | $4.3B | -0.9% |
| Apr 25, 2024 | $9.62 | $9.62 | +0.0% | $4.2B | -0.6% |
| Feb 2, 2024 | $8.05 | $8.33 | +3.5% | $4.0B | -1.0% |
| Oct 26, 2023 | $8.93 | $9.43 | +5.6% | $4.2B | +3.9% |
| Jul 27, 2023 | $9.13 | $9.28 | +1.6% | $4.2B | -0.5% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 7, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
We're off to a strong start in 2026 with both business segments performing well. Despite tariff uncertainty and geopolitical climate, seeing positive demand signals. Experienced with major agricultural customer, Grainger sales meeting showcased products/services/solutions. Recognized as a top workplace. Senior leaders took new roles. First quarter delivered profitable growth, outpaced expectations, operating margin 16.7%, diluted EPS up over 18%, returned $345 million to shareholders, announced 10% increase in quarterly dividend, increasing 2026 guidance
Guidance
Raising full year 2026 guidance. Daily organic cost and currency sales growth expected between 9.5% and 12%. EPS expected between $44.25 and $46.25. Preliminary April sales up north of 13% on a daily organic constant currency basis. Expect second quarter sales north of $4.9 billion and or approaching 12% on a daily organic constant currency basis, operating margins in the low 15% range for total company in second quarter
Segment performance
High-tech solution segment: Reported sales growth of 10.5%, 10% on a daily organic constant currency basis. Gross margin finished the quarter at 42.6%, up 20 basis points versus the prior year, operating margin for the segment to 18.3%, or 60 basis points versus the prior year period. Endless assortment segment: Sales increased 19.6% on a reported basis, or 21.9% on a daily organic constant currency basis. Operating margins increased 190 basis points to 10.6%, monetarial margins remained strong at 12.9%, up 90 basis points, and zero margin improved to 7.3%, up 210 basis points
Risks & headwinds
Ongoing tariff uncertainty and broader geopolitical climate. Fuel cost pressures with leakage as many customers don't fully pay for partial shipping. Supply pressure from Middle East conflict related to certain raw material inputs. Uncertainty regarding potential recovery of previously paid IEPA tariffs
Analyst Q&A
Q: David Mancy on price contribution by each segment and overall.
A: Generally don't talk segment detail, North America about 5% or 5 points of price.
Q: Jacob Levinson on Japan and private label.
A: Some price pressure in Japan, private label products had cost spread compression, some buying of national branded vs private brand, but still confident in private brand path.
Q: Ryan Merkel on demand environment and gross margin.
A: End market demand flipped positive, price realization higher than anticipated, share gain strong; gross margin beat due to better price realization and mixed timing with private label inventory.
Q: Chris Schneider on price cost impact and pricing cycles.
A: January price incorporated tariff actions and Chinese tariff rollbacks, May price net neutral, normal price cycles in January, May, September.
Q: Christopher Glenn on contract cycle and AI use cases.
A: Contract business net positive, many AI use cases in productivity, customer service, finance, supply chain, customer experience.
Q: Andrew Obin on guidance range and pricing sustainability.
A: Pricing momentum sustainable but with headwinds like fuel cost and private brand cost, LIFO impact in Q1 about 70 bits.
Q: Stephen Volkman on end markets and customer behavior.
A: Share gain broad-based, not seen customers buying extra inventory in US, no unusual competitor behavior in US.
Q: Dean Dre on European exits impact and free shipping.
A: European exits benefit year over year about 45 basis points, equally split between gross margin and SG&A; free shipping on partial shipments is meaningful portion, common in contracts, mitigable over time.
Q: Guy Hardwick on organic growth investment and SG&A growth.
A: If able to invest profitably for growth will do, SG&A growth rate expected 5.5% to 6% for rest of year.
Q: Patrick Bauman on margin sequential move and market outlook.
A: Margin sequential decline due to seasonality, private label costs, fuel leakage, market outlook volume growth positive, price moderates.
Q: Tommy Moll on Salesforce ads and distribution network.
A: Salesforce ads net number, adding 60 - 120 annually, Portland facility going live this year, Houston facility to go live in 2028, future investments in existing positions