GWW · 8-K · 20260804PR000076
Operating Income and Margins
W.W. GRAINGER, INC. · 2026-08-04 · Importance 52 · Surprise 30 · No source text
Q2 2026 operating earnings increased 19.0% year over year to $807 million. Operating margin rose 120 basis points to 16.1%, reflecting gross margin improvement in both segments, improved sales leverage in Endless Assortment, and a benefit from the U.K. market exit. Diluted EPS increased 20.5% to $12.01, supported by operating performance and fewer shares outstanding, partly offset by the higher effective tax rate.
Key facts
- Updated 2026 operating margin guidance: 15.8% - 16.2% (previously 15.6% - 16.0%) source
- Second quarter 2026 diluted EPS: $12.01, up 20.5% versus Q2 2025 source
- Updated 2026 segment operating margin guidance for High-Touch Solutions - N.A.: 17.2% - 17.6% (previously 17.0% - 17.4%) source
- Updated 2026 segment operating margin guidance for Endless Assortment: 10.4% - 10.8% (previously 10.2% - 10.6%) source
- Second quarter 2026 operating earnings: $807 million, up 19.0% versus Q2 2025 source
- Second quarter 2026 net earnings attributable to W.W. Grainger, Inc.: $570 million, up 18.3% versus Q2 2025 source
- Second quarter 2026 operating margin: 16.1%, up 120 basis points versus Q2 2025 source
- Q2 2026 weighted average diluted shares outstanding: 47.2 million (Q2 2025: 48.1 million) source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +2.5% | Second quarter 2026 operating earnings: $807 million, up 19.0% versus Q2 2025 |
| net_income | positive | realized | +1.8% | Second quarter 2026 net earnings attributable to W.W. Grainger, Inc.: $570 million, up 18.3% versus Q2 2025 |
| margin | positive | realized | +1.2% | Second quarter 2026 operating margin: 16.1%, up 120 basis points versus Q2 2025 |
| margin | positive | probable | +0.1% | Updated 2026 operating margin guidance: 15.8% - 16.2% (previously 15.6% - 16.0%) |
| margin | positive | probable | +0.1% | Updated 2026 segment operating margin guidance for High-Touch Solutions - N.A.: 17.2% - 17.6% (previously 17.0% - 17.4%) |
| margin | positive | probable | +0.1% | Updated 2026 segment operating margin guidance for Endless Assortment: 10.4% - 10.8% (previously 10.2% - 10.6%) |