First Quarter Highlights
Delivered sales of $4.7 billion, up 10.1%, or 12.2% on a daily, organic constant currency basis
Achieved operating margin of 16.7%, up 110 basis points
Generated diluted EPS of $11.65, up 18.2%
Produced $739 million in operating cash flow and returned $345 million to Grainger shareholders through dividends and share repurchases
Announced quarterly dividend increase of 10%
Increasing full year 2026 guidance, including diluted adjusted EPS range of $44.25 to $46.25
CHICAGO, May 7, 2026 /PRNewswire/ -- Grainger (NYSE: GWW) today reported results for the first quarter of 2026 with sales of $4.7 billion, up 10.1%, or 12.2% on a daily, organic constant currency basis, and diluted EPS of $11.65, up 18.2% compared to the first quarter of 2025.
"We delivered great results in the first quarter driven by strong execution across both segments," said D.G. Macpherson, Chairman and CEO. "Despite ongoing uncertainty with tariffs and the broader geopolitical climate, we're seeing positive signs with the demand environment and are increasing our 2026 guidance to reflect the strong start and continued momentum."
2026 First Quarter Financial Summary
($ in millions, except per share amounts)
Q1 2026(1)
Q1 2025(1)
Q1'26 vs. Q1'25
Fav. / (Unfav.)
Net Sales
$4,742
$4,306
10.1 %
Gross Profit
$1,896
$1,710
10.9 %
Operating Earnings
$793
$672
18.0 %
Net Earnings Attributable to W.W. Grainger, Inc.
$555
$479
15.9 %
Diluted Earnings Per Share
$11.65
$9.86
18.2 %
Gross Profit Margin
40.0 %
39.7 %
30 bps
Operating Margin
16.7 %
15.6 %
110 bps
Effective Tax Rate
25.1 %
23.9 %
(120) bps
(1) Results are consistent on a reported and adjusted basis.
RevenueSales in the quarter increased 10.1% compared to the first quarter of 2025. When normalizing for the Company's exit from the U.K. market and the impact of foreign currency exchange, sales on a daily, organic constant currency basis increased 12.2% compared to the first quarter of 2025.
In the High-Touch Solutions - N.A. segment, sales were up 10.5%, or 10.0% on daily, constant currency basis compared to the first quarter of 2025. Results for the segment were driven by volume growth and price inflation as tariff costs are passed. In the Endless Assortment segment, sales were up 19.6%, or 21.9% on a daily, organic constant currency basis, compared to the first quarter of 2025. Growth for the segment was driven by strong performance at both MonotaRO and Zoro.
Gross Profit MarginGross profit margin was 40.0% in the first quarter of 2026, up 30 basis points compared to the first quarter of 2025 as strength from both segments and a benefit related to the Company's exit from the U.K. market drove results.
In the High-Touch Solutions - N.A. segment, gross profit margin was 42.6%, up 20 basis points compared to the prior year quarter largely due to favorable product mix and freight. In the Endless Assortment segment, gross profit margin increased by 40 basis points from the first quarter of 2025 due primarily to margin improvement at Zoro.
EarningsFor the first quarter of 2026, total Company operating earnings were $793 million, up 18.0% compared to the first quarter of 2025. Operating margin was 16.7%, a 110 basis point increase compared to the first quarter of 2025. This increase in operating margin was driven by gross margin and sales leverage improvement in both segments and a benefit related to the Company's exit from the U.K. market.
Diluted earnings per share for the first quarter of 2026 were $11.65, up 18.2% compared to the first quarter of 2025. The increase was due primarily to strong operating performance and fewer shares outstanding, partly offset by a higher effective tax rate.
Tax RateFor the first quarter of 2026, the effective tax rate was 25.1%, compared to 23.9% in the first quarter of 2025. The increase in the effective tax rate was primarily due to decreased tax credit activity in the current year period and the impact of tax legislation effective in 2026.
Cash FlowDuring the first quarter of 2026, the Company generated $739 million of cash flow from operating activities as net earnings were aided by favorable working capital. The Company invested $170 million in capital expenditures, resulting in free cash flow of $569 million. During the quarter, the Company returned $345 million to Grainger shareholders through dividends and share repurchases.
GuidanceThe Company is updating the following guidance ranges for 2026:
Total Company(1)
Previous 2026 Guidance Range
(as of February 3, 2026)
Updated 2026 Guidance Range
(as of May 7, 2026)
Net Sales
$18.7 - $19.1 billion
$19.2 - $19.6 billion
Sales growth
4.2% - 6.7%
6.7% - 9.1%
Daily, organic constant currency sales growth
6.5% - 9.0%
9.5% - 12.0%
Gross Profit Margin
39.2% - 39.5%
39.2% - 39.5%
Operating Margin
15.4% - 15.9%
15.6% - 16.0%
Diluted Earnings per Share
$42.25 - $44.75
$44.25 - $46.25
Operating Cash Flow
$2.125 - $2.325 billion
$2.2 - $2.4 billion
CapEx (cash basis)
$0.55 - $0.65 billion
$0.55 - $0.65 billion
Share Buyback
$0.95 - $1.05 billion
$0.95 - $1.05 billion
Effective Tax Rate
~25.0%
~25.0%
Segment Operating Margin
High-Touch Solutions - N.A.
16.9% - 17.4%
17.0% - 17.4%
Endless Assortment
10.0% - 10.5%
10.2% - 10.6%
(1) Guidance provided is on an adjusted basis. Daily, organic constant currency sales growth is adjusted for the impact of certain divested or closed businesses in the comparable prior year period post date of divestiture or closure and changes in foreign currency exchange. The Company does not reconcile forward-looking non-GAAP financial measures. For further details see the supplemental information of this release.
WebcastThe Company will conduct a live conference call and webcast at 11:00 a.m. ET on Thursday, May 7, 2026, to discuss the first quarter results. The event will be hosted by D.G. Macpherson, Chairman and CEO, and Deidra Merriwether, Senior Vice President and CFO, and can be accessed at invest.grainger.com. To access the conference call via phone, please send a request to [email protected]. For those unable to participate in the live event, a webcast replay will be available for 90 days at invest.grainger.com.
About GraingerW.W. Grainger, Inc., is a leading broad line distributor with operations primarily in North America and Japan. At Grainger, We Keep the World Working® by serving more than 4.6 million customers worldwide with maintenance, repair and operating (MRO) products and value-added solutions delivered through innovative technology and deep customer expertise. Known for its commitment to service and purpose-driven culture, the Company reported 2025 revenue of $17.9 billion. For more information, visit www.grainger.com.
Visit invest.grainger.com to view information about the Company, including a supplement regarding 2026 first quarter results and additional Company information.
Safe Harbor Statement
All statements in this communication, other than those relating to historical facts, are "forward-looking statements" under the federal securities laws. Forward-looking statements can generally be identified by their use of terms such as "anticipate," "estimate," "believe," "expect," "could," "forecast," "may," "intend," "plan," "predict," "project," "will," or "would," and similar terms and phrases, including references to assumptions. Grainger cannot guarantee that any forward-looking statement will be realized and achievement of future results is subject to risks and uncertainties, many of which are beyond Grainger's control, which could cause Grainger's results to differ materially from those that are presented. Forward-looking statements include, but are not limited to, statements about future strategic plans and future financial and operating results. Important factors that could cause actual results to differ materially from those presented or implied in the forward-looking statements include, without limitation: inflation, higher product costs or other expenses, including operational and administrative expenses; a major loss of customers; loss or disruption of sources of supply; changes in customer or product mix; increased competitive pricing pressures; changes in third-party practices regarding digital advertising; failure to enter into or sustain contractual arrangements on a satisfactory basis with group purchasing organizations; failure to develop, manage or implement new technology initiatives or business strategies including with respect to Grainger's eCommerce platforms ...
