| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 30 | 32.6x | 17.8x | Bottom tier | |
Growth | 46 | 7.8% | 7.1% | Around median | |
Quality | 81 | 30.6% | 4.5% | Top tier | |
Safety | 84 | 0.7x | 2.6x | Top tier | |
Capital Return | 42 | 0.81% | 2.12% | Around median | |
Momentum | 83 | 30.0% | 2.9% | Top tier | |
Sentiment | 82 | 13 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
W.W. Grainger operates as a distributor of maintenance, repair, and operations supplies, serving customers through its High-Touch Solutions and Endless Assortment segments. High-Touch Solutions relies on direct customer relationships and provides solutions for inventory management, safety, and operational needs, while Endless Assortment includes the Zoro and MonotaRO digital platforms. In Q2 fiscal 2026, High-Touch Solutions generated sales growth of 11.9%, while Endless Assortment sales rose 13.5% on a reported basis and 20.6% on an organic daily, constant-currency basis.
In Q2 fiscal 2026, revenue was $5.0 billion, gross profit was $2.0 billion, net income was $570 million, and diluted earnings per share were $12.01. Reported sales increased 10.3%, or 13.7% on an organic daily, constant-currency basis, and gross margin reached 39.5%, up 100 basis points, while operating margin reached 16.1%, up 120 basis points. Gross margin benefited by approximately 90 basis points from the refund of IEEPA tariffs, while higher volume and operating leverage in Endless Assortment supported profitability.
For the twelve months ended in 2026, Grainger recorded revenue of $18.8 billion, gross profit of $7.4 billion, and net income of $1.9 billion, compared with revenue of $17.9 billion and net income of $1.7 billion in fiscal 2025. During Q2 fiscal 2026, High-Touch Solutions' operating margin was approximately 17.3%, versus 11.5% for Endless Assortment; within the digital segment, MonotaRO's margin was approximately 14% and Zoro's margin was approximately 7.6%. These results reflect the contribution of the higher-margin direct business alongside faster growth in the digital platforms.
The analyst consensus on GWW is "Neutral," with an average price target of $1,312, a high of $1,428, and a low of $1,125; the $303 spread between the high and low reveals meaningful divergence in estimates of the earnings and margin trajectory. The average target is below the 52-week range high of $1,419.91, while the high target roughly overlaps with that peak, and the raised fiscal 2026 outlook must be weighed against the nonrecurring nature of most of the IEEPA tariff refund and mix and freight pressures in the second half.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Grainger's revenue in Q2 fiscal 2026 was approximately $5.0 billion, net income was $570 million, and diluted earnings per share were $12.01. Reported sales increased 10.3%, or 13.7% on an organic daily, constant-currency basis, supported by growth in High-Touch Solutions and Endless Assortment. Operating margin rose to 16.1%, with gross margin benefiting by approximately 90 basis points from the refund of IEEPA tariffs.
Grainger raised its outlook on August 4, 2026, targeting organic daily, constant-currency growth of between 11.5% and 13% in fiscal 2026. It expects an operating margin of between 15.8% and 16.2% and earnings per share of between $45.50 and $47.25, representing growth of more than 17% at the midpoint. It also indicated that Q3 fiscal 2026 revenue is expected to exceed $5 billion, with growth of more than 12% on an organic daily, constant-currency basis.
Zoro and MonotaRO are the two drivers of Endless Assortment, which recorded organic daily, constant-currency growth of 20.6% in Q2 fiscal 2026. Zoro U.S. grew 18.4% on a daily basis, and its operating margin reached 7.6% after improving by 180 basis points, supported by higher business customer retention and improved marketing. MonotaRO grew 24% on a local-day, local constant-currency basis and achieved a 14% margin, but its sales included approximately $45 million of advance purchases whose impact has ended.
Automated analysis for informational purposes only — not investment advice.
Projects related to data centers and electrical infrastructure supported contractor and retail sales at High-Touch Solutions in Q2 fiscal 2026. Management estimated that project spending added approximately 90 basis points to High-Touch Solutions' growth, while remaining profitable at the operating-margin level despite reducing gross margin. However, direct exposure to data centers is less than 1%, and management emphasized that Grainger is not transitioning to a project-focused model.
The refund of IEEPA tariffs added approximately 90 basis points to gross margin in Q2 fiscal 2026, but its full-year impact is approximately 23 basis points before offsetting pressures. The company faces higher freight, fuel, and certain product and raw material costs associated with the conflict in the Middle East, in addition to changes in Section 232 tariffs and Section 301 tariffs. It therefore intends to implement additional pricing in September 2026 that will add approximately one percentage point annually, while expecting Q3 fiscal 2026 operating margin to decline to the mid-15% range.
Grainger announced that Dee Merriwether will step down as Chief Financial Officer to pursue another opportunity, effective September 4, 2026. Laurie Thomson, Vice President, Controller, and Principal Accounting Officer, was appointed Interim Chief Financial Officer effective September 5, 2026, while retaining her current oversight responsibilities. The company said the transition does not affect daily operations and that it will immediately begin searching for its next Chief Financial Officer.
