W W Grainger (GWW) Q2 2026 earnings summary

Executive summary

• Achieved Q2 2026 sales of $5.0 billion, up 10.3% year-over-year, with daily, organic constant currency sales up 13.7%.

• Diluted EPS rose 20.5% to $12.01, benefiting from IEEPA tariff refunds and fewer shares outstanding.

• Operating margin improved by 120 bps to 16.1%, aided by IEEPA tariff refunds.

• Returned $341 million to shareholders via dividends and share repurchases.

• Raised full-year 2026 guidance, including higher sales and EPS targets.

Financial highlights

• Net sales: $5,021 million, up 10.3% from Q2 2025.

• Gross profit margin increased 100 bps to 39.5%; gross profit was $1,984 million, up 13.0%.

• Operating earnings up 19% to $807M; operating margin at 16.1%.

• Operating cash flow was $444M; free cash flow for the quarter was $333M.

• Net earnings attributable: $570 million, up 18.3%.

Outlook and guidance

• Raised FY 2026 sales guidance to $19.4–$19.7B (8.4%–10.0% growth), with daily, organic constant currency sales expected to grow 11.5%–13.0%.

• Gross margin guidance increased to 39.3%–39.6%; adjusted operating margin to 15.8%–16.2%.

• Adjusted EPS guidance raised to $45.50–$47.25, up 15.3%–19.7% year-over-year.

• Operating cash flow for 2026 expected at $2.2–$2.4B; capital expenditures $575–$650M.

• Effective tax rate projected at ~25.0%.