Grainger Q1 sales rise 10%, beat analyst estimates; lifts 2026 outlook

WW Grainger

07/05/2026 13:12

Overview

US broad line distributor's Q1 net sales rose 10%, beating analyst expectations

Diluted EPS for Q1 rose 18% yr/yr, driven by strong operating performance

Company raised 2026 sales and adjusted EPS guidance after strong Q1 results

Outlook

Grainger raises 2026 net sales outlook to $19.2-$19.6 bln from $18.7-$19.1 bln

Company lifts 2026 diluted EPS forecast to $44.25-$46.25 from $42.25-$44.75

Company sees 2026 sales growth of 6.7%-9.1%, up from prior 4.2%-6.7% range

Result Drivers

SEGMENT GROWTH - High-Touch Solutions sales rose on volume growth and price inflation, while Endless Assortment segment growth was driven by strong performance at MonotaRO and Zoro

MARGIN IMPROVEMENT - Gross profit margin increased due to strength in both segments, favorable product mix and freight, and a benefit from the exit of the U.K. market

OPERATING LEVERAGE - Operating margin gains were driven by gross margin and sales leverage improvement in both segments and the U.K. exit

Company press release: ID:nPn59glrsa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Sales
Beat
$4.74 bln
$4.58 bln (16 Analysts)
Q1 EPS
$11.65


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 11 "hold" and 4 "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

Wall Street's median 12-month price target for WW Grainger Inc is $1,180.00, about 0.9% above its May 6 closing price of $1,169.86

The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 25 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)