Grainger

Grainger is a large distributor of maintenance, repair and operating (MRO) products, such as safety equipment, tools, pumps and lighting. It buys products from more than 5,000 suppliers and resells them to more than 4.6 million customers, mainly in North America and Japan. It makes money from the gross margin between what it pays for products and what it charges, which was 38.8% of sales in Q3 2026. The High-Touch Solutions segment serves mid-size and large businesses with complex needs through sales staff, branches, distribution centers and next-day delivery.

The Endless Assortment segment sells millions of products online through Zoro in the US and MonotaRO in Japan. The US gave about 81% of sales in 2025. Grainger left the UK market in the fourth quarter of 2025. Revenue in 2025 was $17.9 billion.

Grainger trades at a discount because investors doubt that its 2026 growth and margins will last. Part of the 2026 sales growth comes from price increases that pass on tariff, fuel and freight costs, and the Q2 2026 margin included $43 million of one-time IEEPA tariff refunds. Investors fear that growth slows and margins fall when these effects end. The CFO also left on September 4, 2026, and an interim CFO serves while the company looks for a new one.

Q3 2026 gave the first evidence against this fear. Sales grew 14.9% on a daily, organic constant currency basis, with double-digit volume growth in the High-Touch Solutions segment, and the operating margin was 16.0%, above the mid-15% range that management guided. Grainger raised its 2026 EPS guidance to $47.00 to $48.00. Freight costs and mix still lowered the gross margin of the High-Touch Solutions segment by 30 basis points.

For the gap to close, Grainger must give a 2027 outlook that keeps volume growth above the MRO market and an operating margin near 16% as price inflation fades. A permanent CFO must also be named. The next test is the Q4 2026 report and the 2027 guidance, expected in early February 2027. The second test is the Q1 2027 report, when growth must hold against higher prices a year earlier.

If margins hold, the gap can close over the next two to four quarters. The main risk is a slowdown in US industrial demand when price inflation fades.

1. Nov 4, 2026Passed

   Q3 2026 results: margin without tariff refundsDaily, organic constant currency sales growth near 12% and an operating margin in the mid-15% range pass; a lower margin or a cut to the 2026 guidance fails.Outcome: Sales grew 14.9% on a daily, organic constant currency basis, the operating margin was 16.0%, and Grainger raised its 2026 EPS guidance to $47.00 to $48.00.
2. Feb 4, 2027 · est.Pending

   Q4 2026 results and 2027 guidanceA 2027 outlook with volume growth above the MRO market and a stable operating margin passes; guidance that depends on price increases alone or shows a lower margin fails.
3. May 2027 · est.Pending

   Q1 2027 results: growth after price inflationSales growth that holds as tariff-driven price increases fade, and a permanent CFO in place, pass; a sharp slowdown in volume fails.

Every passed and failed checkpoint across all picks

• November 4, 2026Grainger reported Q3 2026 results. Sales were $5.18 billion, up 11.3%, or 14.9% on a daily, organic constant currency basis. The operating margin was 16.0%, and the adjusted operating margin was 16.1%. Diluted EPS was $12.42, and adjusted diluted EPS was $12.54, up 22.8%. Grainger raised its 2026 guidance to adjusted diluted EPS of $47.00 to $48.00 and sales of $19.8 billion to $20.0 billion.
• September 4, 2026CFO Deidra Merriwether left the company to pursue another opportunity. Laurie Thomson, Vice President and Controller, became interim CFO on September 5, 2026. Grainger started a search for a permanent CFO.
• August 26, 2026Grainger bought the technology, intellectual property and staff of Adroit Worldwide Media for $210 million in cash. The assets help customers manage their MRO inventory in the High-Touch Solutions segment. Grainger plans a commercial pilot over the next several months and expects no material effect on near-term results.

Last earnings

November 4, 2026 (8-K on sec.gov)

Next earnings

Expected about February 4, 2027. The company has not confirmed the date.

• 10-QQuarterly report for the period ended Sep 30, 2026Filed November 4, 2026 · gww-20260930
• 8-KEarnings releaseFiled November 4, 2026 · Press release and exhibits
• 10-QQuarterly report for the period ended Jun 30, 2026Filed August 4, 2026 · gww-20260630
• 8-KEarnings releaseFiled August 4, 2026 · Press release and exhibits
• 8-KChange of directors or officersFiled August 3, 2026 · Read it on sec.gov
• 8-KEarnings releaseFiled May 8, 2026 · Press release and exhibits
• 10-QQuarterly report for the period ended Mar 31, 2026Filed May 7, 2026 · gww-20260331
• 8-KShareholder vote resultsFiled May 1, 2026 · gww-20260429
• 10-KAnnual report for the period ended Dec 31, 2025Filed February 19, 2026 · gww-20251231
• 8-KEarnings releaseFiled February 3, 2026 · Press release and exhibits

Every filing on SEC EDGAR (CIK 277135)

• The Q2 2026 margin included $43 million of one-time IEEPA tariff refunds. In Q3 2026, higher freight costs and mix lowered the gross margin of the High-Touch Solutions segment by 30 basis points, to 40.8%. Higher freight and fuel costs, linked to the conflict in the Middle East, and lower margins on private label products and large projects can press on gross margin further.
• Part of the 2026 sales growth comes from higher prices that pass on tariff and freight costs, and from about $45 million of temporary prebuying at MonotaRO in Q2 2026. When price inflation fades, sales growth can slow to the rate of volume growth.
• Demand for MRO products follows US industrial activity. A recession or a fall in factory output lowers sales, because about 81% of 2025 sales came from the US.
• Grainger competes with manufacturers that sell directly, other distributors, retailers and online businesses. If large online sellers win more customers on price and range, Grainger can lose share or must cut prices.
• Grainger has only an interim CFO since September 5, 2026. A long search or a change in financial policy can add uncertainty.

Grainger has little debt for its size. Total debt was $2,685 million at September 30, 2026, against $2,488 million at December 31, 2025. Read more

Yield at the current rate

0.7% (current annual rate, at today’s price)

Dividend yield

0.7% (last 12 months, at today’s price of $1,486.53)

Paid per share

$9.73 in the last 12 months (4 payments)

Current annual rate

$9.96 ($2.49 × 4 a year)

Payout ratio

25% of the last fiscal year’s earnings (the year that ended December 31, 2025)

Latest ex-dividend date

November 9, 2026, $2.49 per share

Dividends per share by year

From 2020 to 2025, the dividend grew by about 8.3% a year. From 2015 to 2025, the dividend grew by about 6.8% a year.

Source: company filings and market data, read on November 13, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.