GWW · 8-K · 20260804PR000076
Income Tax Rate Changes
W.W. GRAINGER, INC. · 2026-08-04 · Importance 67 · Surprise 66 · In source text
Q2 2026 income tax provision increased to $198 million from $153 million in Q2 2025. The effective tax rate rose to 24.8% from 23.2%, a 160-basis-point increase. Grainger attributed the increase primarily to decreased tax credit activity and the impact of tax legislation effective in 2026. The higher tax rate partially offset operating gains in diluted EPS.
Key facts
- Updated 2026 effective tax rate guidance: ~25.0% (unchanged) source
- Second quarter 2026 effective tax rate: 24.8%, compared to 23.2% in Q2 2025 (increase of 160 basis points) source
- The increase in the effective tax rate was primarily due to decreased tax credit activity and the impact of tax legislation effective in 2026 source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | unclear | probable | — | Updated 2026 effective tax rate guidance: ~25.0% (unchanged) |