GWW · 10-Q · 2026Q2 · Full report
Income Tax Rate Changes
W.W. GRAINGER, INC. · 2026-08-04 · Importance 65 · Surprise 66 · No source text
Six-month income tax expense increased $82 million to $392 million, and the effective tax rate rose to 24.9% from 23.5%. Second-quarter income tax expense increased $45 million to $198 million, while the effective tax rate increased to 24.8% from 23.2%. Grainger attributed the rate increases primarily to decreased tax credit activity in 2026. Tax legislation effective in 2026 also increased the reported effective tax rates for both periods.
Key facts
- Income tax expense for the three months ended June 30, 2026: $198 million, increased $45 million compared to the same period in 2025. source
- Income taxes for the six months ended June 30, 2026: $392 million, increased $82 million compared to the same period in 2025; effective tax rates were 24.9% in 2026 and 23.5% in 2025. source
- Effective tax rates were 24.8% for the three months ended June 30, 2026 and 23.2% for the three months ended June 30, 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -1.6% | Income taxes for the six months ended June 30, 2026: $392 million, increased $82 million compared to the same period in 2025; effective… |
| margin | negative | realized | -1.4% | Income taxes for the six months ended June 30, 2026: $392 million, increased $82 million compared to the same period in 2025; effective… |
| net_income | negative | realized | -0.9% | Income tax expense for the three months ended June 30, 2026: $198 million, increased $45 million compared to the same period in 2025. |