AI Takeaway
GWW delivered strong Q1 FY2026 results with revenue up 10.1% YoY to $4.74B, operating income surging 18.0% to $793M, and diluted EPS growing 18.2% to $11.65, reflecting solid margin expansion and robust cash generation.
Revenue
$4.74B
++10.13% YoY
EPS (Basic)
$11.67
++18.12% YoY
Gross Margin
40.0%
++0.27% YoY
Operating Income
$793M
++18.01% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
GWW grew total revenue by 10.1% YoY to $4.74B in Q1 FY2026, compared to $4.31B in the prior-year period, demonstrating continued demand strength in its industrial distribution business.
Source: Source: 10-Q Income Statement, Q1 FY2026
Gross margin improved modestly to 40.0% from 39.7%, while operating margin expanded meaningfully by approximately 110 basis points to 16.7% from 15.6%, indicating operating leverage as revenue growth outpaced SG&A growth of only 6.3%.
Source: Source: 10-Q Income Statement & Key Ratios, Q1 FY2026
Diluted EPS rose 18.2% YoY to $11.65 from $9.86, outpacing net income growth of 15.9%, partly reflecting the benefit of ongoing share repurchase activity reducing the share count.
Source: Source: 10-Q Income Statement, Q1 FY2026
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Upgrade to unlockGWW carries $2.41B in long-term debt as of Q1 FY2026, up 5.7% YoY. Rising interest costs or refinancing challenges in a higher-rate environment could pressure net income and cash flows. Debt service requirements may limit financial flexibility for future investments or acquisitions.
Source: Source: 10-Q Balance Sheet, Q1 FY2026
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Upgrade to unlockReported EPS of $11.65 versus the $10.31 analyst consensus — a +13.0% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $4.74B | $4.31B | +10.13% |
Cost of Revenue | $2.85B | $2.6B | +9.63% |
Gross Profit | $1.9B | $1.71B | +10.88% |
Operating Income | $793M | $672M | +18.01% |
Net Income | $555M | $479M | +15.87% |
EPS (Basic) | $11.67 | $9.88 | +18.12% |
EPS (Diluted) | $11.65 | $9.86 | +18.15% |
SG&A Expense | $1.1B | $1.04B | +6.26% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $9.47B | $8.66B | +9.41% |
Current Assets | $5.91B | $5.53B | +6.82% |
Current Liabilities | $2.2B | $2.02B | +9.02% |
Stockholders' Equity | $3.93B | $3.48B | +12.93% |
Cash & Equivalents | $695M | $666M | +4.35% |
Long-Term Debt | $2.41B | $2.28B | +5.70% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $739M | $646M | +14.40% |
Investing Cash Flow | $-178M | $-125M | -42.40% |
Financing Cash Flow | $-446M | $-898M | +50.33% |
Share Buybacks | $237M | $281M | -15.66% |
D&A | $80M | $79M | +1.27% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 40.0% | 39.7% | +0.27% |
Operating Margin | 16.7% | 15.6% | +1.12% |
Net Margin | 11.7% | — | — |
ROE | 14.1% | — | — |
ROA | 5.9% | — | — |
Current Ratio | $2.686 | — | — |
Other companies in Industrial Machinery & Supplies & Components
GWW delivered a strong Q1 FY2026, with revenue growing 10.1% YoY to $4.74B and net income rising 15.9% to $555M. Diluted EPS came in at $11.65, up 18.2% from $9.86 in the prior-year period, driven by operating leverage and disciplined cost management.
GWW's revenue grew 10.1% YoY to $4.74B in Q1 FY2026, supported by strong demand in its industrial distribution business. Gross profit grew even faster at 10.9%, suggesting both volume growth and stable pricing contributed to the top-line performance.
Yes, GWW expanded both gross and operating margins in Q1 FY2026. Gross margin improved to approximately 40.0% from 39.7%, while operating margin expanded by about 110 basis points to 16.7%, as SG&A expense growth of 6.3% lagged revenue growth of 10.1%.
GWW's financial health appears solid, with a current ratio of 2.69x, $695M in cash, and $3.93B in stockholders' equity. Long-term debt stands at $2.41B, resulting in a manageable debt-to-equity ratio of approximately 0.61x, supported by $739M in quarterly operating cash flow.
GWW repurchased $237M worth of shares in Q1 FY2026, down 15.7% from $281M in the prior-year period. Combined with strong EPS growth of 18.2% to $11.65, the company continued to deliver meaningful capital returns to shareholders.