W.W. GRAINGER, INC.
For the period ended Jun 30, 2026. Filed Aug 4, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 4, 2026
GWW$1,440.70-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0000277135-26-000053
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0000277135-26-000079
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 66 previous paragraphs and 87 current paragraphs.
42 unchanged; 15 reworded; 22 added; 9 removed; 0 previous and 8 current paragraphs rearranged.
Tables are not compared: 7 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
Operating earnings of $807 million for the three months ended June 30, 2026 increased $129 million, or 19%, compared to the same period in 2025.
Current report
Net sales of $3,967 million for the three months ended June 30, 2026 increased $423 million, which represents a 12% increase on a reported and daily, constant currency basis compared to the same period in 2025. The increase was primarily due to volume.
Current report
Gross profit of $1,660 million for the three months ended June 30, 2026 increased $206 million, or 14%, and gross profit margin of 41.8% increased 80 basis points compared to the same period in 2025. The increase was primarily due to tariff refund benefits recognized in the quarter, which was partially offset by an increase in freight costs.
Current report
SG&A expenses of $974 million for the three months ended June 30, 2026 increased $109 million, or 13%, compared to the same period in 2025. The increase was primarily due to higher payroll and benefit expenses.
Current report
Operating earnings of $686 million for the three months ended June 30, 2026 increased $97 million, or 17%, compared to the same period in 2025.
Current report
Gross profit of $324 million for the three months ended June 30, 2026 increased $47 million, or 17%, and gross profit margin of 30.7% increased 90 basis points compared to the same period in 2025. The increase was primarily due to favorable discount activity at Zoro and favorable product mix across the segment.
Current report
SG&A expenses of $203 million for the three months ended June 30, 2026 increased $18 million, or 10%, compared to the same period in 2025. The increase was primarily due to higher marketing expenses.
Current report
Operating earnings of $121 million for the three months ended June 30, 2026 increased $29 million, or 32%, compared to the same period in 2025.
Current report
Results of Operations – Six Months Ended June 30, 2026
Current report
Gross profit of $3,880 million for the six months ended June 30, 2026 increased $415 million, or 12%, and gross profit margin of 39.7% increased 60 basis points compared to the same period in 2025. For further discussion on the Company's gross profit, see the Segment Analysis section below.
Current report
Operating earnings of $1,600 million for the six months ended June 30, 2026 increased $250 million, or 19%, compared to the same period in 2025.
Current report
Diluted earnings per share was $23.66 for the six months ended June 30, 2026, an increase of 19% compared to $19.83 for the same period in 2025.
Current report
Segment Analysis
Current report
High-Touch Solutions N.A.
Current report
Net sales of $7,719 million for the six months ended June 30, 2026 increased $778 million, which represents an 11% increase on a reported and daily, constant currency basis compared to the same period in 2025. The increase was primarily due to volume.
Current report
Gross profit of $3,259 million for the six months ended June 30, 2026 increased $366 million, or 13%, and gross profit margin of 42.2% increased 50 basis points compared to the same period in 2025. The increase was primarily due to tariff refund benefits recognized in 2026, which was partially offset by an increase in freight costs.
Current report
Operating earnings of $1,374 million for the six months ended June 30, 2026 increased $185 million, or 16%, compared to the same period in 2025.
Current report
Endless Assortment
Current report
Net sales of $2,044 million for the six months ended June 30, 2026 increased $287 million, or 16%, and on a daily, constant currency basis increased 21% compared to the same period in 2025. The increase was due to repeat business for the segment and enterprise customer growth at MonotaRO. Sales growth was partially offset by unfavorable currency exchange of 4% due to changes in the exchange rate between the U.S. dollar and the Japanese yen.
Current report
Gross profit of $621 million for the six months ended June 30, 2026 increased $99 million, or 19%, and gross profit margin of 30.4% increased 70 basis points compared to the same period in 2025. The increase was primarily due to favorable discount activity at Zoro and favorable product mix across the segment.
Current report
SG&A expenses of $395 million for the six months ended June 30, 2026 increased $37 million, or 10%, compared to the same period in 2025. The increase was primarily due to higher marketing expenses in 2026.
Current report
Operating earnings of $226 million for the six months ended June 30, 2026 increased $62 million, or 38%, compared to the same period in 2025.
Removed paragraphs (9)
Previous report
Operating earnings of $793 million for the three months ended March 31, 2026 increased $121 million, or 18%, compared to the same period in 2025.
Previous report
The following table shows reported segment results (in millions of dollars):
Previous report
Net sales of $3,752 million for the three months ended March 31, 2026 increased $355 million, or 11%, and on a daily, constant currency basis increased 10% compared to the same period in 2025. The increase was due to equal contribution of 5% for both volume and price.
Previous report
Gross profit of $1,599 million for the three months ended March 31, 2026 increased $160 million, or 11%, and gross profit margin of 42.6% increased 20 basis points compared to the same period in 2025.
Previous report
SG&A expenses of $911 million for the three months ended March 31, 2026 increased $72 million, or 9%, compared to the same period in 2025. The increase was primarily due to higher payroll and benefit expenses.
Previous report
Operating earnings of $688 million for the three months ended March 31, 2026 increased $88 million, or 15%, compared to the same period in 2025.
Previous report
The following table shows reported segment results (in millions of dollars):
Previous report
Gross profit of $297 million for the three months ended March 31, 2026 increased $52 million, or 21%, and gross profit margin of 30.0% increased 40 basis points compared to the same period in 2025.
Previous report
Operating earnings of $105 million for the three months ended March 31, 2026 increased $33 million, or 46%, compared to the same period in 2025.
Reworded paragraphs (15)
Previous wording
The Company is actively monitoring economic conditions in the U.S. and key international markets, including the continued uncertainty regarding evolving tariff and trade policies, changes in interest rates, foreign currency exchange rate fluctuations, inflationary pressures, and the risk of a global or regional economic recession. Although the precise timing and magnitude of these factors remains uncertain, the Company believes its strategy is well positioned to navigate a range of outcomes. The Company continues to evaluate the impact of evolving tariff and trade policies, including potential changes in product sourcing strategies, cost management and customer pricing, and has implemented various strategies designed to mitigate certain adverse effects of changing inflationary conditions and challenges in our supply chain, while striving to maintain market competitiveness.
Current wording
The Company is actively monitoring economic conditions in the U.S. and key international markets, including the continued uncertainty regarding evolving tariff and trade policies, changes in interest rates, foreign currency exchange rate fluctuations, inflationary pressures, rising fuel and transportation costs, and the risk of a global or regional economic recession. Although the precise timing and magnitude of these factors remains uncertain, the Company believes its strategy is well positioned to navigate a range of outcomes. The Company continues to evaluate the impact of evolving tariff and trade policies, including potential changes in product sourcing strategies, cost management and customer pricing, and has implemented various strategies designed to mitigate certain adverse effects of changing inflationary conditions and challenges in our supply chain, while striving to maintain market competitiveness.
Previous wording
Net sales of $4,742 million for the three months ended March 31, 2026 increased $436 million, or 10%, and on a daily, organic constant currency basis, net sales increased 12% compared to the same period in 2025. Both High-Touch Solutions N.A. and the Endless Assortment segment contributed to sales growth in the first quarter of 2026. For further discussion on the Company's net sales, see the Segment Analysis section below.
Current wording
Net sales of $5,021 million for the three months ended June 30, 2026 increased $467 million, or 10%, and on a daily, organic constant currency basis, net sales increased 14% compared to the same period in 2025. Both High-Touch Solutions N.A. and the Endless Assortment segment contributed to sales growth in the second quarter of 2026. For further discussion on the Company's net sales, see the Segment Analysis section below.
Previous wording
Gross profit of $1,896 million for the three months ended March 31, 2026 increased $186 million, or 11%, and gross profit margin of 40.0% increased 30 basis points compared to the same period in 2025. For further discussion on the Company's gross profit, see the Segment Analysis section below.
Current wording
Gross profit of $1,984 million for the three months ended June 30, 2026 increased $229 million, or 13%, and gross profit margin of 39.5% increased 100 basis points compared to the same period in 2025. For further discussion on the Company's gross profit, see the Segment Analysis section below.
Previous wording
Selling, general and administrative (SG&A) expenses of $1,103 million for the three months ended March 31, 2026 increased $65 million, or 6%, compared to the same period in 2025. The increase was due to higher payroll and benefit expenses in the first quarter of 2026 partially offset by a benefit related to the exit from the U.K. market in the fourth quarter of 2025.
Current wording
Selling, general and administrative (SG&A) expenses of $1,177 million for the three months ended June 30, 2026 increased $100 million, or 9%, compared to the same period in 2025. The increase was due to higher payroll and benefit expenses in the second quarter of 2026 partially offset by a benefit related to the exit from the U.K. market in the fourth quarter of 2025.
Previous wording
Income tax expense of $194 million for the three months ended March 31, 2026 increased $37 million compared to the same period in 2025. Grainger's effective tax rates were 25.1% and 23.9% for the three months ended March 31, 2026 and 2025, respectively. The Company's effective tax rate increase was primarily due to decreased tax credit activity in the current year period and the impact of tax legislation effective in 2026.
Current wording
Income tax expense of $198 million for the three months ended June 30, 2026 increased $45 million compared to the same period in 2025. Grainger's effective tax rates were 24.8% and 23.2% for the three months ended June 30, 2026 and 2025, respectively. The Company's effective tax rate increase was primarily due to decreased tax credit activity in the current year period and the impact of tax legislation effective in 2026.
Previous wording
Diluted earnings per share was $11.65 for the three months ended March 31, 2026, an increase of 18% compared to $9.86 for the same period in 2025.
Current wording
Diluted earnings per share was $12.01 for the three months ended June 30, 2026, an increase of 20% compared to $9.97 for the same period in 2025.
Previous wording
Net sales of $990 million for the three months ended March 31, 2026 increased $162 million, or 20%, and on a daily, organic constant currency basis increased 22% compared to the same period in 2025. The increase was due to repeat business for the segment and enterprise customer growth at MonotaRO.
Current wording
Net sales of $1,054 million for the three months ended June 30, 2026 increased $125 million, or 14%, and on a daily, organic constant currency basis increased 21% compared to the same period in 2025. The increase was due to repeat business for the segment and enterprise customer growth at MonotaRO. Sales growth was partially offset by unfavorable currency exchange of 6% due to changes in the exchange rate between the U.S. dollar and the Japanese yen.
Previous wording
SG&A expenses of $192 million for the three months ended March 31, 2026 increased $19 million, or 11%, compared to the same period in 2025. The increase was primarily due to higher marketing and payroll and benefit expenses.
Current wording
SG&A expenses of $1,885 million for the six months ended June 30, 2026 increased $181 million, or 11%, compared to the same period in 2025. The increase was primarily due to higher payroll and benefit expenses in 2026.
Previous wording
As of March 31, 2026 and December 31, 2025, Grainger had cash and cash equivalents of $695 million and $585 million, respectively. The Company had approximately $1.9 billion in available liquidity as of March 31, 2026.
Current wording
As of June 30, 2026 and December 31, 2025, Grainger had cash and cash equivalents of $589 million and $585 million, respectively. The Company had approximately $1.8 billion in available liquidity as of June 30, 2026.
Previous wording
Net cash provided by operating activities was $739 million and $646 million for the three months ended March 31, 2026 and 2025, respectively. The increase was primarily due to higher net earnings.
Current wording
Net cash provided by operating activities was $1,183 million and $1,023 million for the six months ended June 30, 2026 and 2025, respectively. The increase was primarily due to higher net earnings.
Previous wording
Net cash used in investing activities was $178 million and $125 million for the three months ended March 31, 2026 and 2025, respectively. The increase was due to capital expenditures primarily driven by continued MonotaRO supply chain investments in the first three months of 2026.
Current wording
Net cash used in investing activities was $294 million and $283 million for the six months ended June 30, 2026 and 2025, respectively. The 2026 investing activities were in line with prior year and driven by continued investment in supply chain across the Company.
Previous wording
Net cash used in financing activities was $446 million and $898 million for the three months ended March 31, 2026 and 2025, respectively. The decrease in cash used in financing activities was primarily due to the repayment of the 1.85% Senior Notes in the amount of $500 million in 2025.
Current wording
Net cash used in financing activities was $874 million and $1,201 million for the six months ended June 30, 2026 and 2025, respectively. The decrease in cash used in financing activities was primarily due to the repayment of the 1.85% Senior Notes in the amount of $500 million in 2025.
Previous wording
Working capital as of March 31, 2026 was $3,490 million, a decrease of $25 million compared to $3,515 million as of December 31, 2025. As of March 31, 2026 and December 31, 2025, the ratio of current assets to current liabilities was 2.6 and 3.0, respectively.
Current wording
Working capital as of June 30, 2026 was $3,615 million, an increase of $100 million compared to $3,515 million as of December 31, 2025. As of June 30, 2026 and December 31, 2025, the ratio of current assets to current liabilities was 2.8 and 3.0, respectively.
Previous wording
Total debt as a percent of total capitalization was 35.7% and 37.5% as of March 31, 2026 and December 31, 2025, respectively.
Current wording
Total debt as a percent of total capitalization was 34.8% and 37.5% as of June 30, 2026 and December 31, 2025, respectively.
Previous wording
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 and artificial intelligence; failure to adequately protect intellectual property or successfully defend against infringement claims; fluctuations or declines in Grainger's gross profit margin; Grainger's responses to market pressures; the outcome of pending and future litigation or governmental or regulatory proceedings, including with respect to wage and hour, anti-bribery and corruption, environmental, regulations related to advertising, marketing and the internet, consumer protection, pricing (including disaster or emergency declaration pricing statutes), product liability, compliance or safety, trade and export compliance, general commercial disputes, or privacy and cybersecurity matters; investigations, inquiries, audits and changes in laws and regulations; failure to comply with laws, regulations and standards, including new or stricter environmental laws or regulations; government contract matters, including new or revised provisions relating to contract compliance or performance; the impact of any government shutdown; disruption or breaches of information technology or data security systems involving Grainger or third parties on which Grainger depends; general industry, economic, market or political conditions; general global economic conditions including existing, new, or increased tariffs, trade issues and changes in trade policies, inflation, and interest rates; currency exchange rate fluctuations; market volatility, including price and trading volume volatility or price declines of Grainger's common stock; an incident that adversely impacts Grainger’s reputation or brand; commodity price volatility; facilities disruptions or shutdowns; higher fuel costs or disruptions in transportation services; effects of outbreaks of pandemic disease or viral contagions, global conflicts, natural or human induced disasters, extreme weather, and other catastrophes or conditions; effects of climate change; failure to execute on our corporate responsibility efforts; competition for, or failure to attract, retain, train, motivate and develop executives and key team members; loss of key members of management or key team members; loss of operational flexibility and potential for work stoppages or slowdowns if team members uni…
Excerpt shortened here; the source contains the full paragraph.
Current wording
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, acquisitions or business strategies, including with respect to Grainger's eCommerce platforms and artificial intelligence; failure to adequately protect our intellectual property or successfully defend against infringement claims; fluctuations or declines in Grainger's gross profit margin; Grainger's responses to market pressures; the outcome of pending and future litigation or governmental or regulatory proceedings, including with respect to wage and hour, anti-bribery and corruption, environmental, regulations related to advertising, marketing and the internet, consumer protection, pricing (including disaster or emergency declaration pricing statutes), product liability, compliance or safety, trade and export compliance, general commercial disputes, or privacy and cybersecurity matters; investigations, inquiries, audits and changes in laws and regulations; failure to comply with laws, regulations and standards, including new or stricter environmental laws or regulations; government contract matters, including new or revised provisions relating to contract compliance or performance; the impact of any government shutdown; disruption or breaches of information technology or data security systems involving Grainger or third parties on which Grainger depends; general industry, economic, market or political conditions; general global economic conditions including existing, new, or increased tariffs, trade issues and changes in trade policies, inflation, and interest rates; currency exchange rate fluctuations; market volatility, including price and trading volume volatility or price declines of Grainger's common stock; an incident that adversely impacts Grainger’s reputation or brand; commodity price volatility; facilities disruptions or shutdowns; higher fuel costs or disruptions in transportation services; effects of outbreaks of pandemic disease or viral contagions, global conflicts, natural or human-induced disasters, extreme weather, and other catastrophes or conditions; effects of climate change; failure to execute on our corporate responsibility efforts; competition for, or failure to attract, retain, train, motivate and develop executives and key team members; loss of key members of management or key team members; loss of operational flexibility and potential for work stoppages or slowdowns i…
Excerpt shortened here; the source contains the full paragraph.
Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
In this section, Grainger utilizes non-GAAP measures where it believes it will assist users of its financial statements in understanding its business. For further information regarding the Company's non-GAAP measures, including reconciliations to the most directly comparable GAAP measure, see below "Non-GAAP Measures."
Current report — wording carried from elsewhere
The following table is included as an aid to understanding the changes in Grainger’s Condensed Consolidated Statements of Earnings for the six months ended June 30, 2026 and 2025 (in millions of dollars except per share amounts):
Current report — wording carried from elsewhere
The following table is included as an aid to understanding the changes of Grainger's total net sales, daily net sales and daily, organic constant currency net sales compared to the prior year period for the six months ended June 30, 2026 and 2025 (in millions of dollars):
Current report — wording carried from elsewhere
Net sales of $9,763 million for the six months ended June 30, 2026 increased $903 million, or 10%, and on a daily, constant currency basis increased 13% compared to the same period in 2025. Both High-Touch Solutions N.A. and the Endless Assortment segments contributed to sales growth in the six months ended June 30, 2026. For further discussion on the Company's net sales, see the Segment Analysis section below.
Current report — wording carried from elsewhere
SG&A expenses of $2,280 million for the six months ended June 30, 2026 increased $165 million, or 8%, compared to the same period in 2025. The increase was due to higher payroll and benefit expenses in 2026 partially offset by a benefit related to the exit from the U.K. market in the fourth quarter of 2025.
Current report — wording carried from elsewhere
Income taxes of $392 million for the six months ended June 30, 2026 increased $82 million, compared to the same period in 2025. Grainger's effective tax rates were 24.9% and 23.5% for the six months ended June 30, 2026 and 2025, respectively. The Company's effective tax rate increase was primarily due to decreased tax credit activity in the current year period and the impact of tax legislation effective in 2026.
Current report — wording carried from elsewhere
In this section, Grainger utilizes non-GAAP measures where it believes it will assist users of its financial statements in understanding its business. For further information regarding the Company's non-GAAP measures, including reconciliations to the most directly comparable GAAP measure, see below "Non-GAAP Measures." For further segment information, see Note 6 of the Notes to Condensed Consolidated Financial Statements in Part I, Item 1: Financial Statements of this Form 10-Q.
Current report — wording carried from elsewhere
The following tables provide reconciliations of reported net sales growth compared to the prior year period in accordance with GAAP to the Company's non-GAAP measures daily net sales and daily, organic constant currency net salesfor the six months ended June 30, 2026 and 2025 (in millions of dollars):