Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
W.W. Grainger's second quarter of fiscal 2026 featured solid volume-driven expansion across both its High-Touch Solutions and Endless Assortment segments. Gross margin benefited from tariff refunds recognized in the quarter, though these were partly weighed down by rising freight and labor expenses. The exit from the U.K. market in late 2025 provided a tailwind to SG&A comparisons, while a higher effective tax rate tempered bottom-line growth. Operating cash flow remained strong, enabling the company to return capital to shareholders through buybacks and dividends.
Revenue
$5.02B
+10.25% YoY
EPS (Diluted)
$12.01
+20.46% YoY
Gross Margin
39.5%
+1.0 pts YoY
Operating Income
$807M
+19.03% YoY
Source: SEC XBRL
W.W. Grainger (GWW) reported Q2 FY2026 revenue of $5.02B, up 10.3% year over year. Operating margin was 16.1%, up 1.2 points from 14.9% a year earlier. GWW's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 11.65 | 10.31 | Beat +13.0% |
| Dec 2025 | 9.44 | 9.56 | Miss -1.2% |
| Sep 2025 | 10.21 | 10.05 | Beat +1.6% |
| Jun 2025 | 9.97 | 10.16 | Miss -1.9% |
2 reported segments · SEC XBRL
Segment revenue totals $5.02B, which is the $5.02B of consolidated revenue on the income statement. The profit column adds up to the consolidated figure as well.
Profit above is reported as operating income, the measure GWW itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
High-Touch Solutions N.A. segment gross margin increased 80 basis points, primarily due to tariff refund benefits recognized in the quarter, which more than offset higher freight costs.
Source: 10-Q Item 2 MD&A
Daily, organic constant currency net sales grew 13.7%, excluding currency and divestiture impacts, indicating strong core demand across both segments.
Source: 10-Q Item 2 MD&A
SG&A growth of 9.3% was partially offset by a benefit from the exit from the U.K. market (Cromwell and Zoro U.K.) completed in Q4 2025.
Source: 10-Q Item 2 MD&A
The effective tax rate increased to 24.8% from 23.2% due to lower tax credit activity and new tax legislation effective in 2026.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 2 of this filing · 1 high, 3 medium, 1 low
Evolving U.S. and foreign tariff and trade policies could increase product costs, disrupt supply chains, and affect demand, creating volatility in Grainger's operations and financial results.
Source: 10-Q Item 2 MD&A
A significant portion of sales from the Endless Assortment segment, particularly MonotaRO in Japan, is exposed to yen-dollar exchange rate movements, which can materially affect reported revenue and earnings.
Source: 10-Q Item 2 MD&A
Rising freight, fuel, and labor costs could compress margins if not fully passed through to customers, especially in a competitive pricing environment.
Source: 10-Q Item 2 MD&A
The High-Touch Solutions N.A. segment relies heavily on industrial MRO spending; a slowdown in manufacturing or infrastructure activity could significantly impact revenue and profitability.
Source: 10-Q Item 2 MD&A
Intensifying competition in e-commerce and digital channels requires ongoing investment in technology and marketing, which may pressure SG&A and margins if not managed efficiently.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 5.02 $B | 4.55 $B | +10.25% |
Cost of Revenue $B | 3.04 $B | 2.80 $B | +8.50% |
Gross Profit $B | 1.98 $B | 1.76 $B | +13.05% |
Operating Income $M | 807.00 $M | 678.00 $M | +19.03% |
Net Income $M | 570.00 $M | 482.00 $M | +18.26% |
EPS (Basic) $ | 12.02 $ | 9.99 $ | +20.32% |
EPS (Diluted) $ | 12.01 $ | 9.97 $ | +20.46% |
SG&A Expense $B | 1.18 $B | 1.08 $B | +9.29% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
GWW (W.W. Grainger) grew FY2025 revenue 4.5% to $17.94B, but net income fell 10.6% to $1.71B as SG&A expenses surged 9.5% and operating margin compressed by ~150 basis points to 13.9%.
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