W.W. Grainger, Inc. Q3 2026 Earnings Recap

Grainger’s shares rose 6.5% after earnings, with the quarter’s double-digit organic growth, higher operating margin and EPS growth supporting the positive reaction. Management also raised its 2026 earnings outlook.

Key Takeaways

• Sales grew 14.9% on a daily organic constant-currency basis; adjusted diluted EPS was $12.54, up more than 22% year over year.
• Operating margin expanded 90 basis points to 16.1%. Gross margin increased 20 basis points to 38.8%, with U.K. market exits also benefiting both measures.
• High-Touch sales rose 13.8%, but segment gross margin fell 30 basis points to 40.8%, reflecting freight headwinds and slightly negative project-spend mix; operating margin edged up 10 basis points to 17.3%.
• Endless Assortment sales grew 19.3% on a daily organic constant-currency basis. Zoro U.S. grew 25.2% and MonotaRO 13.6% on their respective daily measures; segment operating margin rose 190 basis points to 11.7%.
• Operating cash flow was $661 million, and Grainger returned $396 million to shareholders through dividends and share repurchases.