GWW · 10-Q · 2026Q3 · Full report
Gross Margin Drivers
W.W. GRAINGER, INC. · 2026-11-04 · Importance 54 · Surprise 40 · No source text
Consolidated gross profit increased 11.8% to $2,011 million in the third quarter, and gross margin expanded 20 basis points to 38.8%. For the first nine months, gross profit grew 11.9% to $5,891 million and gross margin expanded 50 basis points to 39.4%. High-Touch Solutions N.A. margin declined 30 basis points to 40.8% in the quarter, while Endless Assortment margin increased 90 basis points to 31.0%, primarily due to favorable Zoro discount activity and product mix.
Key facts
- For the three months ended September 30, 2026, gross profit was $2,011 million, up $213 million or 12%, and gross profit margin was 38.8%, up 20 basis points year over year. source
- For the three months ended September 30, 2026, High-Touch Solutions N.A. gross profit was $1,687 million, up $192 million or 13%, and its gross profit margin of 40.8% decreased 30 basis points year over year. source
- For the nine months ended September 30, 2026, gross profit was $5,891 million, up $628 million or 12%, and gross profit margin was 39.4%, up 50 basis points year over year. source
- For the nine months ended September 30, 2026, High-Touch Solutions N.A. gross profit was $4,946 million, up $558 million or 13%, and gross profit margin of 41.7% increased 20 basis points. source
- For the three months ended September 30, 2026, Endless Assortment gross profit was $324 million, up $43 million or 15%, and gross profit margin was 31.0%, up 90 basis points; the increase primarily reflected favorable Zoro discount activity and favorable product mix. source
- For the nine months ended September 30, 2026, Endless Assortment gross profit was $945 million, up $142 million or 18%, and gross profit margin of 30.6% increased 80 basis points; the increase primarily reflected favorable Zoro discount activity and favorable product mix. source
- Grainger is evaluating tariff and trade policy changes and potential adjustments to product sourcing, cost management, and customer pricing, and has implemented strategies to mitigate adverse inflationary conditions and supply-chain challenges. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | positive | realized | +0.5% | For the nine months ended September 30, 2026, gross profit was $5,891 million, up $628 million or 12%, and gross profit margin was 39.4%,… |