GWW · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

W.W. GRAINGER, INC. · 2026-11-04 · Importance 54 · Surprise 74

Third-quarter effective tax rate declined to 24.3% from 34.7%, while reported tax expense increased $27 million to $198 million. The nine-month effective tax rate was 24.7%, down from 26.6%, with tax expense up $109 million to $590 million. The adjusted nine-month tax rate increased from 24.0% to 24.7%, primarily because of tax legislation effective in 2026; the adjusted third-quarter rate fell from 24.8% to 24.3% due primarily to increased tax credit benefits.

Key facts

• For the three months ended September 30, 2026, Grainger's income tax expense was $198 million and its effective tax rate was 24.3%, compared with 34.7% in the same period of 2025. source
• For the nine months ended September 30, 2026, Grainger income taxes were $590 million and effective tax rates were 24.7% in 2026 and 26.6% in 2025. source
• For the three months ended September 30, 2026, Grainger's adjusted effective tax rate was 24.3%, compared with 24.8% in 2025; the decrease was primarily due to increased tax credit benefits in 2026. source
• For the nine months ended September 30, 2026, adjusted effective tax rates were 24.7% in 2026 and 24.0% in 2025; the increase was primarily due to tax legislation effective in 2026. source