W.W. Grainger (NYSE:GWW) Posts Quarterly Earnings Results, Misses Estimates By $0.02 EPS

W.W. Grainger (NYSE:GWW) announced its quarterly earnings data on Tuesday. The industrial products company reported $9.44 EPS for the quarter, missing analysts’ consensus estimates of $9.46 by ($0.02), Briefing.com reports. W.W. Grainger had a return on equity of 49.40% and a net margin of 9.75%.The company had revenue of $4.43 billion for the quarter, compared to analyst estimates of $4.39 billion. During the same period in the prior year, the firm posted $9.71 earnings per share. The business’s quarterly revenue was up 4.5% compared to the same quarter last year. W.W. Grainger updated its FY 2026 guidance to 42.250-44.750 EPS.

Here are the key takeaways from W.W. Grainger’s conference call:

• Grainger set a constructive 2026 outlook with revenue of $18.7–$19.1 billion, daily organic constant-currency growth of 6.5%–9%, operating margin guidance of 15.4%–15.9%, and EPS of $42.25–$44.75, up >10% at the midpoint.
• The Endless Assortment segment is a clear growth engine — daily organic sales +15.7% (Zoro U.S. +16%, MonotaRO strong in local currency) with segment operating margin up 200 bps to 10.6%, driven by improved repeat rates and distribution expansion.
• High‑Touch Solutions delivered modest volume growth (company estimates ~250 bps of outgrowth versus their multifactor MRO model), but segment sales were only low single‑digits and operating margin declined due to higher SG&A and unexpected healthcare costs.
• Tariff and inventory dynamics remain a headwind — management has passed most known tariff costs and plans ~3% pricing in 2026, but LIFO inventory valuation pressure hit Q4/Q1 gross margins and the tariff situation is still fluid.
• Strong cash generation and shareholder returns remain intact with expected 2026 operating cash flow of ~$2.1–2.3B, CapEx of $550–$650M, ~$1B of buybacks, and an anticipated dividend increase in the high‑single to low‑double digits.

W.W. Grainger Stock Performance

Shares of NYSE GWW traded up $60.26 during midday trading on Tuesday, reaching $1,156.44. 811,527 shares of the company were exchanged, compared to its average volume of 266,060. The stock has a market cap of $54.99 billion, a P/E ratio of 32.43, a PEG ratio of 2.66 and a beta of 1.10. W.W. Grainger has a 1 year low of $893.99 and a 1 year high of $1,169.57. The stock has a fifty day simple moving average of $1,019.94 and a 200 day simple moving average of $992.42. The company has a current ratio of 2.72, a quick ratio of 1.59 and a debt-to-equity ratio of 0.60.

W.W. Grainger Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Sunday, March 1st. Stockholders of record on Monday, February 9th will be paid a dividend of $2.26 per share. The ex-dividend date is Monday, February 9th. This represents a $9.04 annualized dividend and a dividend yield of 0.8%. W.W. Grainger’s dividend payout ratio is 25.35%.

Insider Buying and Selling

In related news, CEO Donald G. Macpherson sold 12,163 shares of W.W. Grainger stock in a transaction on Friday, December 5th. The shares were sold at an average price of $972.57, for a total value of $11,829,368.91. Following the transaction, the chief executive officer directly owned 103,885 shares in the company, valued at $101,035,434.45. This trade represents a 10.48% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP Krantz Nancy L. Berardinelli sold 195 shares of the business’s stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $1,023.93, for a total transaction of $199,666.35. Following the completion of the transaction, the vice president directly owned 3,174 shares in the company, valued at $3,249,953.82. This represents a 5.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 26,881 shares of company stock valued at $26,157,155 over the last ninety days. 6.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in GWW. Moors & Cabot Inc. boosted its position in shares of W.W. Grainger by 3.1% in the 3rd quarter. Moors & Cabot Inc. now owns 464 shares of the industrial products company’s stock worth $442,000 after buying an additional 14 shares in the last quarter. Epoch Investment Partners Inc. lifted its holdings in shares of W.W. Grainger by 9.5% in the third quarter. Epoch Investment Partners Inc. now owns 231 shares of the industrial products company’s stock valued at $220,000 after purchasing an additional 20 shares in the last quarter. Evergreen Capital Management LLC lifted its holdings in shares of W.W. Grainger by 6.3% in the second quarter. Evergreen Capital Management LLC now owns 355 shares of the industrial products company’s stock valued at $369,000 after purchasing an additional 21 shares in the last quarter. Rehmann Capital Advisory Group grew its position in shares of W.W. Grainger by 6.9% in the third quarter. Rehmann Capital Advisory Group now owns 354 shares of the industrial products company’s stock valued at $338,000 after purchasing an additional 23 shares during the last quarter. Finally, Horizon Investments LLC increased its stake in shares of W.W. Grainger by 0.7% during the 3rd quarter. Horizon Investments LLC now owns 4,308 shares of the industrial products company’s stock worth $4,096,000 after purchasing an additional 28 shares in the last quarter. 80.70% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about W.W. Grainger

Here are the key news stories impacting W.W. Grainger this week:

• Positive Sentiment: Q4 results beat consensus on both EPS and sales: Grainger reported $9.44 EPS (vs. $9.43 est.) and roughly $4.42–$4.43B revenue, with sales up ~4.5% year‑over‑year. Management cited strong growth in its Endless Assortment channel that helped offset margin pressure. Zacks: Grainger Earnings Beat
• Positive Sentiment: Strong cash generation and capital returns: Grainger produced ~$2.0B in operating cash flow for FY2025 and returned ~$1.5B to shareholders via dividends and buybacks, supporting shareholder value. Press Release: Grainger Reports Results
• Neutral Sentiment: Company issued FY2026 guidance (EPS $42.25–$44.75; revenue $18.7B–$19.1B) and a sales growth target of ~6.5%–9.0% (daily, organic, constant currency). The outlook provides clarity on the year ahead but sits broadly in line with Street expectations, making its market impact mixed. Press Release: FY2026 Guidance
• Negative Sentiment: Margin pressure and EPS comparisons weigh on the report: operating margin declined (down ~70 bps in the quarter; full‑year margins also compressed), and Q4 EPS was modestly below last year’s $9.71, reflecting cost and margin headwinds. These trends raise questions about margin recovery. Press Release: Margin Detail
• Negative Sentiment: Guidance midpoint is slightly below consensus EPS estimate (reported consensus ~43.82), which could temper upside expectations if investors were looking for an above‑consensus outlook. Zacks: Q4 Summary & Guidance Context

Wall Street Analyst Weigh In

Several research firms have commented on GWW. JPMorgan Chase & Co. boosted their price target on shares of W.W. Grainger from $1,045.00 to $1,100.00 and gave the stock a “neutral” rating in a report on Friday, January 16th. Oppenheimer raised W.W. Grainger from a “market perform” rating to an “outperform” rating and set a $1,250.00 target price on the stock in a report on Tuesday, January 27th. Morgan Stanley decreased their price target on W.W. Grainger from $1,150.00 to $1,100.00 and set an “equal weight” rating for the company in a report on Tuesday, November 25th. Sanford C. Bernstein initiated coverage on W.W. Grainger in a report on Wednesday, November 12th. They issued a “market perform” rating and a $975.00 price objective on the stock. Finally, Royal Bank Of Canada boosted their target price on W.W. Grainger from $1,006.00 to $1,050.00 and gave the stock a “sector perform” rating in a research note on Monday, November 3rd. Two research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $1,045.75.

W.W. Grainger Company Profile

W.W. Grainger, Inc (NYSE: GWW) is an industrial supply distributor founded in 1927 and headquartered in Lake Forest, Illinois. The company supplies maintenance, repair and operations (MRO) products and services to businesses, institutions and government customers. Over its long history Grainger has developed a broad product assortment and a national distribution network that supports operations across a range of end markets, including manufacturing, healthcare, hospitality, transportation and public sector organizations.

Grainger’s product portfolio spans core categories such as electrical and lighting, safety and personal protective equipment, material handling, motors and power transmission, plumbing and HVAC, fasteners and adhesives, hand and power tools, and janitorial and facility supplies.