W.W. GRAINGER, INC.
For the period ended Sep 30, 2026. Filed Nov 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.
Sep 30, 2026 · Filed Nov 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 2026-06-30; filed 2026-08-04.
0000277135-26-000079
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0000277135-26-000090
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 87 previous paragraphs and 92 current paragraphs.
47 unchanged; 30 reworded; 15 added; 9 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 12 previous and 14 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 (15)
Current report
Gross profit of $1,687 million for the three months ended September 30, 2026 increased $192 million, or 13%, and gross profit margin of 40.8% decreased 30 basis points compared to the same period in 2025.
Current report
Operating earnings of $706 million for the three months ended September 30, 2026 increased $82 million, or 13%, compared to the same period in 2025. Adjusted operating earnings of $714 million increased $90 million, or 14%, compared to the same period in 2025.
Current report
SG&A expenses of $202 million for the three months ended September 30, 2026 increased $3 million, or 2%, compared to the same period in 2025. Adjusted SG&A increased $13 million, or 7%, compared to the same period in 2025. The increase was primarily due to higher payroll and benefit and marketing expenses.
Current report
Operating earnings of $122 million for the three months ended September 30, 2026 increased $40 million, or 49%, compared to the same period in 2025. Adjusted operating earnings increased $30 million, or 33%, compared to the same period in 2025.
Current report
Results of Operations – Nine Months Ended September 30, 2026
Current report
In this section, Grainger utilizes non-GAAP measures where it believes it will assist users of its financial statements in understanding its business. As discussed in the "Non-GAAP Measures" section, the current year results have been adjusted to exclude one-time expenses recorded in SG&A expenses of $8 million within High-Touch Solutions N.A., related to the acquisition of assets discussed in Note 2, "Acquisitions," of the Notes to the Condensed Consolidated Financial Statements in Part I, Item 1: Financial Statements of this Form 10-Q. 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
Operating earnings of $2,428 million for the nine months ended September 30, 2026 increased $567 million, or 31%, compared to the same period in 2025. Adjusted operating earnings of $2,436 million increased $379 million, or 18%, compared to the same period in 2025.
Current report
Operating earnings of $2,080 million for the nine months ended September 30, 2026 increased $267 million, or 15%, compared to the same period in 2025. Adjusted operating earnings of $2,088 million increased $275 million, or 15%, compared to the same period in 2025.
Current report
Operating earnings of $348 million for the nine months ended September 30, 2026 increased $102 million, or 42%, compared to the same period in 2025. Adjusted operating earnings increased $92 million, or 36%, compared to the same period in 2025.
Current report
Acquisition of Adroit Worldwide Media, Inc. Assets
Current report
On August 26, 2026, the Company acquired technology, intellectual property, and talent assets from Adroit Worldwide Media, Inc. for a purchase price of $215 million, which was comprised of $210 million of cash paid at closing and a $5 million payment made prior to the closing. The Company incurred $8 million of transaction costs and recognized a tax benefit of $2 million as a result of this acquisition. See Note 2, "Acquisitions," to the Condensed Consolidated Financial Statements in Item 1 for more information on the acquisition of Adroit Worldwide Media, Inc. assets.
Current report
Exiting Market in the United Kingdom
Current report
In the third quarter of 2025, the Company committed to a plan to sell its Cromwell business in the U.K. and concluded that the business met the criteria as held for sale. The Company recorded a pre-tax asset impairment loss of $186 million in SG&A expenses. Additionally, the Company announced the closure of Zoro U.K. in its Endless Assortment segment and recorded expenses related to the closure of $10 million in SG&A expenses. The Company completed the divestiture of Cromwell and closure of Zoro U.K. in the fourth quarter of 2025. For further details on the sale, see Note 2 of the Notes to Consolidated Financial Statements in Part II, Item 8: Financial Statements and Supplementary Data in the Company’s 2025 Form 10-K.
Current report
The following tables provide reconciliations of reported SG&A expenses, operating earnings, net earnings attributable to W.W. Grainger, Inc. and diluted earnings per share determined in accordance with GAAP to the Company's non-GAAP measures adjusted SG&A expenses, adjusted operating earnings, adjusted net earnings attributable to W.W. Grainger, Inc. and adjusted diluted earnings per share for the three and nine months ended September 30, 2026 and 2025 (in millions of dollars):
Current report
Net cash used in investing activities was $628 million and $543 million for the nine months ended September 30, 2026 and 2025, respectively. The 2026 investing activities were higher primarily due to the acquisition of assets from Adroit Worldwide Media, Inc. See Note 2, "Acquisitions," to the Condensed Consolidated Financial Statements in Item 1 for more information on the acquisition of Adroit Worldwide Media, Inc. assets.
Removed paragraphs (9)
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
Results of Operations – Six Months Ended June 30, 2026
Previous 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.
Previous 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.
Previous 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.
Previous report
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.
Reworded paragraphs (30)
Previous wording
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 measures, see below "Non-GAAP Measures."
Current wording
In this section, Grainger utilizes non-GAAP measures where it believes it will assist users of its financial statements in understanding its business. As discussed in the "Non-GAAP Measures" section, the current year results have been adjusted to exclude one-time expenses recorded in SG&A expenses of $8 million within High-Touch Solutions N.A., related to the acquisition of assets discussed in Note 2, "Acquisitions," of the Notes to the Condensed Consolidated Financial Statements in Part I, Item 1: Financial Statements of this Form 10-Q. For further information regarding the Company's non-GAAP measures, including reconciliations to the most directly comparable GAAP measures, see below "Non-GAAP Measures."
Previous 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.
Current wording
Net sales of $5,181 million for the three months ended September 30, 2026 increased $524 million, or 11%, and on a daily, organic constant currency basis, net sales increased 15% compared to the same period in 2025. Both High-Touch Solutions N.A. and the Endless Assortment segment contributed to sales growth in the third quarter of 2026. For further discussion on the Company's net sales, see the Segment Analysis section below.
Previous 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.
Current wording
Gross profit of $2,011 million for the three months ended September 30, 2026 increased $213 million, or 12%, and gross profit margin of 38.8% increased 20 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 $1,177 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.
Current wording
Selling, general and administrative (SG&A) expenses of $1,183 million for the three months ended September 30, 2026 decreased $104 million, or 8%, compared to the same period in 2025. Adjusted SG&A expenses of $1,175 million increased $84 million, or 8%, compared to the same period in 2025. The increase was primarily due to higher payroll and benefit expenses in the third 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
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 wording
Operating earnings of $828 million for the three months ended September 30, 2026 increased $317 million, or 62%, compared to the same period in 2025. Adjusted operating earnings of $836 million increased $129 million, or 18%, compared to the same period in 2025.
Previous 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.
Current wording
Income tax expense of $198 million for the three months ended September 30, 2026 increased $27 million on a reported basis compared to the same period in 2025. Grainger's effective tax rates were 24.3% and 34.7% for the three months ended September 30, 2026 and 2025, respectively. Adjusted income tax expense of $200 million increased $29 million compared to the same period in 2025. The adjusted effective tax rates were 24.3% and 24.8% for the three months ended September 30, 2026 and 2025, respectively. The Company's adjusted effective tax rate decrease was primarily due to increased tax credit benefits in 2026.
Previous 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.
Current wording
Diluted earnings per share was $12.42 for the three months ended September 30, 2026, an increase of 103% compared to $6.12 for the same period in 2025. Adjusted diluted earnings per share was $12.54, an increase of 23% compared to $10.21 for the same period in 2025.
Previous wording
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 wording
Net sales of $4,135 million for the three months ended September 30, 2026 increased $500 million, which represents a 14% increase on a reported and daily, constant currency basis compared to the same period in 2025. The increase was primarily due to volume.
Previous wording
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 wording
SG&A expenses of $981 million for the three months ended September 30, 2026 increased $110 million, or 13%, compared to the same period in 2025. Adjusted SG&A of $973 million increased $102 million, or 12%, compared to the same period in 2025. The increase was primarily due to higher payroll and benefit expenses in 2026.
Previous 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.
Current wording
Net sales of $1,046 million for the three months ended September 30, 2026 increased $111 million, or 12%, and on a daily, organic constant currency basis increased 19% 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
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 wording
Gross profit of $324 million for the three months ended September 30, 2026 increased $43 million, or 15%, and gross profit margin of 31.0% 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.
Previous wording
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 wording
The following table is included as an aid to understanding the changes in Grainger’s Condensed Consolidated Statements of Earnings for the nine months ended September 30, 2026 and 2025 (in millions of dollars except per share amounts):
Previous wording
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 wording
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 nine months ended September 30, 2026 and 2025 (in millions of dollars):
Previous wording
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 wording
Net sales of $14,944 million for the nine months ended September 30, 2026 increased $1,427 million, or 11%, and on a daily, organic constant currency basis increased 14% compared to the same period in 2025. Both High-Touch Solutions N.A. and the Endless Assortment segments contributed to sales growth in the nine months ended September 30, 2026. For further discussion on the Company's net sales, see the Segment Analysis section below.
Previous wording
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 wording
Gross profit of $5,891 million for the nine months ended September 30, 2026 increased $628 million, or 12%, and gross profit margin of 39.4% increased 50 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
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 wording
SG&A expenses of $3,463 million for the nine months ended September 30, 2026 increased $61 million, or 2%, compared to the same period in 2025. Adjusted SG&A of $3,455 million increased $249 million, or 8%, compared to the same period in 2025. The increase was primarily 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.
Previous wording
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 wording
Income taxes of $590 million for the nine months ended September 30, 2026 increased $109 million on a reported basis compared to the same period in 2025. Grainger's effective tax rates were 24.7% and 26.6% for the nine months ended September 30, 2026 and 2025, respectively. Adjusted income tax expense of $592 million increased $111 million compared to the same period in 2025. The adjusted effective tax rates were 24.7% and 24.0% for the nine months ended September 30, 2026 and 2025, respectively. The Company's adjusted effective tax rate increase was primarily due to the impact of tax legislation effective in 2026.
Previous wording
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 wording
Diluted earnings per share was $36.08 for the nine months ended September 30, 2026, an increase of 39% compared to $25.97 for the same period in 2025. Adjusted diluted earnings per share was $36.20, an increase of 21% compared to $30.03 for the same period in 2025.
Previous wording
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 wording
Net sales of $11,854 million for the nine months ended September 30, 2026 increased $1,278 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.
Previous wording
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 wording
Gross profit of $4,946 million for the nine months ended September 30, 2026 increased $558 million, or 13%, and gross profit margin of 41.7% increased 20 basis points compared to the same period in 2025.
Previous 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.
Current wording
SG&A expenses of $2,866 million for the nine months ended September 30, 2026 increased $291 million, or 11%, compared to the same period in 2025. Adjusted SG&A of $2,858 million increased $283 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
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 wording
Net sales of $3,090 million for the nine months ended September 30, 2026 increased $398 million, or 15%, 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 5% due to changes in the exchange rate between the U.S. dollar and the Japanese yen.
Previous wording
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 wording
Gross profit of $945 million for the nine months ended September 30, 2026 increased $142 million, or 18%, and gross profit margin of 30.6% increased 80 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.
Previous wording
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 wording
SG&A expenses of $597 million for the nine months ended September 30, 2026 increased $40 million, or 7%, compared to the same period in 2025. Adjusted SG&A increased $50 million, or 9%, compared to the same period in 2025. The increase was primarily due to higher marketing expenses in 2026.
Previous wording
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):
Current wording
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 nine months ended September 30, 2026 and 2025 (in millions of dollars):
Previous 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.
Current wording
As of September 30, 2026 and December 31, 2025, Grainger had cash and cash equivalents of $768 million and $585 million, respectively. The Company had approximately $2.0 billion in available liquidity as of September 30, 2026.
Previous 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.
Current wording
Net cash provided by operating activities was $1,844 million and $1,620 million for the nine months ended September 30, 2026 and 2025, respectively. The increase was primarily due to higher net earnings.
Previous 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.
Current wording
Net cash used in financing activities was $1,027 million and $1,599 million for the nine months ended September 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 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.
Current wording
Working capital as of September 30, 2026 was $3,651 million, an increase of $136 million compared to $3,515 million as of December 31, 2025. As of September 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 34.8% and 37.5% as of June 30, 2026 and December 31, 2025, respectively.
Current wording
Total debt as a percent of total capitalization was 36.2% and 37.5% as of September 30, 2026 and December 31, 2025, respectively.
Rearranged previous paragraphs (1)
Previous report — wording carried 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."