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Grainger: W.W. Grainger's 2025 Earnings Report: A Strong Finish

W.W. Grainger delivered total company sales growth of 4.5% on a reported basis and 4.9% on a daily organic constant currency basis, with total sales finishing the year at $17.9 billion. Operating margin finished at 15% for the year, and adjusted EPS growth was 1.3% to $39.48 per share. In the fourth quarter, daily sales grew 4.5% or 4.6% on a daily organic constant currency basis, with diluted EPS of $9.44, slightly below estimates of $9.46.

GWW

USD 1045.82

-1.85%

A-Score: 5.1/10

Publication date: February 3, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Total Sales Growth: Achieved $79.9 billion in sales (4.9% daily organic constant currency growth) for 2025.
  • Operating Margin Performance: Maintained 15% operating margin for the year, despite a 70-basis-point decline in Q4 due to SG&A expenses.
  • Endless Assortment Momentum: Zoro and MonotaRO drove 12.5–15% growth in 2026, with MonotaRO adding 25% enterprise customers in 2025.
  • 2026 Guidance: Projects 6.5–9% daily organic constant currency sales growth and EPS of $42.25–$44.75 (+10% at midpoint).
  • Margin Strategy: Embedded ~3% price increases for 2026, with gross margin expected to decline 10 basis points due to Endless Assortment outgrowth.

Segment Performance

The High Touch Solutions segment delivered sales growth of 2.2% on a reported basis, with gross margin finishing the quarter at 42.3%, flat versus the prior year. Operating margin for the segment finished at 15.8%, down 120 basis points versus the prior-year quarter. The Endless Assortment segment, which includes Zoro and MonotaRO, regained growth momentum, with MonotaRO driving strong results, including 25% growth of enterprise customers.

Guidance and Outlook

For 2026, W.W. Grainger expects daily organic constant currency sales growth between 6.5% and 9%, with operating margins ranging from 15.4% to 15.9%. The endless assortment segment is expected to grow between 12.5% and 15% on a daily organic constant currency basis. Analysts estimate next year's revenue growth at 6.6%, which is within the company's guidance range.

Valuation Metrics

With a P/E Ratio of 32.05, the stock appears to be fairly valued, considering the company's expected earnings growth. The EV/EBITDA ratio of 20.67 also suggests a reasonable valuation. Additionally, the company's ROE of 49.17% and ROIC of 27.1% indicate strong profitability.

Digital Channel Growth

W.W. Grainger's e-commerce platform, eDiePRO, has become a significant share of its business, with KeepStock growing as a percentage of the total. The company's digital channels are expected to continue driving growth, with a focus on improving endless assortment and repeat rates.

Tariff-Related Pressures

The company has passed on the majority of known tariff-related costs to date, but the situation remains fluid. W.W. Grainger is staying agile and remains confident in its ability to adhere to its core tenets to reach price cost neutrality over time while maintaining competitive pricing.

Grainger's A-Score