Grainger Raises 2026 EPS Outlook as Q3 Sales Rise 11.3% and Adjusted EPS Jumps 22.8%

Published November 4, 2026 at 9:22 AM EST

Grainger raised its 2026 earnings outlook after third-quarter sales rose 11.3% to $5.181 billion and adjusted EPS jumped 22.8%, according to its 8-K released Wednesday, as the industrial distributor cited an improving demand environment.

On a daily, organic constant-currency basis, sales grew 14.9%. Reported diluted EPS more than doubled, up 102.9% to $12.42, because the year-ago quarter included a loss from exiting the U.K. market. Adjusted EPS was $12.54, up from $10.21.

Margins expand

Gross margin edged up 20 basis points to 38.8%. Reported operating margin rose 500 basis points to 16.0%, and adjusted operating margin rose 90 basis points to 16.1%. Net earnings attributable to Grainger reached $587 million, compared with $294 million.

Sales in the High-Touch Solutions North America segment rose 13.8%, driven by double-digit volume growth.

"The third quarter performance reflects our consistent execution and an improving demand environment," said Chairman and CEO D.G. Macpherson. "Following another quarter of strong performance, we are increasing our 2026 guidance and remain on track for an exceptional year."

Grainger generated $661 million of operating cash flow and returned $396 million to shareholders through dividends and buybacks.

Guidance raised

Grainger now expects 2026 net sales of $19.8 billion to $20.0 billion, up from $19.4 billion to $19.7 billion, with daily organic constant-currency growth of 13.0% to 14.5%. Adjusted EPS guidance moves to $47.00 to $48.00 from $45.50 to $47.25.

The company now forecasts operating margin of 16.0% to 16.2% and operating cash flow of $2.35 billion to $2.45 billion. Planned buybacks were narrowed to $975 million to $1.025 billion.

By the numbers

Q3 sales: $5.181 billion, up 11.3%
Daily organic constant-currency growth: 14.9%
Adjusted EPS: $12.54, up 22.8%
Adjusted operating margin: 16.1%
2026 adjusted EPS guidance: $47.00 to $48.00

Sources

W.W. Grainger Form 8-K with third-quarter 2026 earnings release, filed Nov. 4, 2026 (accession 0000277135-26-000088)

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