CHICAGO – November 04, 2026 -- Grainger (NYSE: GWW) raised its full-year 2026 earnings outlook to a diluted adjusted EPS range of $47.00 to $48.00 after third-quarter sales rose 11.3% to $5.2 billion. On a daily, organic constant currency basis, sales grew 14.9%.
Adjusted diluted EPS reached $12.54, up 22.8% year over year. Reported diluted EPS was $12.42, up 102.9%, because the prior-year quarter carried a loss tied to the company's exit from the U.K. market. CEO D.G. Macpherson said Grainger remains "on track for an exceptional year."
High-Touch Solutions N.A. sales climb 13.8% on volume and price
Sales in the North American High-Touch segment rose 13.8% on both a reported and daily constant currency basis. Grainger attributed the gain to double-digit volume growth and continued price inflation as cost increases were passed through.
Segment gross margin fell 30 basis points to 40.8%, pressured by unfavorable freight expense and mix.
Endless Assortment segment grows 19.3% organically, led by MonotaRO and Zoro
Endless Assortment sales rose 11.9% as reported and 19.3% on a daily, organic constant currency basis. Grainger credited strong performance at both MonotaRO and Zoro. Segment gross margin improved 90 basis points, with both businesses contributing.
Company-wide gross margin was 38.8%, up 20 basis points. Grainger cited Endless Assortment expansion and a benefit from the U.K. exit.
Adjusted operating margin expands 90 basis points to 16.1%
Reported operating earnings were $828 million, up 62.0%, with a 16.0% operating margin, up 500 basis points. Adjusted operating earnings were $836 million, up 18.2%, with a 16.1% margin. Grainger attributed the adjusted margin gain to sales leverage in both segments and a benefit related to the U.K. exit.
Adjusted results exclude transaction costs for the acquisition of technology assets in the current year. They also exclude the prior-year loss on the sale of the Cromwell business and the closure of Zoro U.K.
Lower tax rate and smaller share count lift EPS
Grainger attributed the EPS increase mainly to strong operating performance, fewer shares outstanding and a lower effective tax rate. The reported effective tax rate was 24.3%, versus 34.7% a year earlier. The adjusted rate was 24.3%, versus 24.8%, helped by additional tax credit benefits.
Grainger generates $546 million in free cash flow and returns $396 million
Operating cash flow totaled $661 million. After $115 million in capital expenditures, free cash flow was $546 million. Dividends and share repurchases returned $396 million to shareholders.
Macpherson and Interim CFO Laurie Thomson hosted the results call on Nov. 4, 2026.