W.W. Grainger Raises Full-Year Outlook as Sales Growth Accelerates
The industrial distributor raised its 2026 diluted adjusted EPS guidance to a range of $45.50 to $47.25
W.W. Grainger (GWW), the industrial distributor, reported second-quarter net sales of $5.0 billion, an increase of 10.3% year-over-year.
The results marked a notable acceleration in growth compared to the 5.6% increase recorded in the same period last year. Daily, organic constant currency sales growth rose to 13.7% in the second quarter of 2026, up from 12.2% in the first quarter and 5.1% in the second quarter of 2025.
Diluted earnings per share grew 20.5% to $12.01, compared to $9.97 in the prior-year period. The company's operating margin increased 120 basis points to 16.1%, while gross profit margin expanded 100 basis points to 39.5%. This margin expansion reversed an 80 basis point decline seen in the second quarter of 2025.
Growth was supported by the High-Touch Solutions - N.A. segment, where sales grew 11.9% year-over-year, a rise from the 2.5% growth reported in the second quarter of 2025. The Endless Assortment segment saw daily, organic constant currency sales growth of 20.6%, down slightly from 21.9% in the first quarter.
Margins were aided by the company's exit from the U.K. market via Cromwell and Zoro U.K.. Additionally, the second-quarter results included a $43 million reduction in cost of goods sold stemming from IEEPA tariff refunds. The effective tax rate rose to 24.8% from 23.2% in the prior-year quarter due to 2026 tax legislation and decreased tax credit activity.
Grainger raised its full-year 2026 net sales guidance to a range of $19.4 billion to $19.7 billion, up from previous projections of $19.2 billion to $19.6 billion. The company also increased its full-year daily, organic constant currency sales growth guidance to a range of 11.5% to 13.0%, compared to the previous range of 9.5% to 12.0%.