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Sentiment · FY2026 Q2
Grainger delivered a strong start to 2026, with total company sales up 10.1% reported (12.2% on a daily organic constant currency basis) and diluted EPS of $11.65, up 18.2% versus 2025, meaningfully outpacing the expectations management set in February. Operating margin reached 16.7%, up 110 basis points year over year, aided by healthy price realization (about five points of price in North America), broad-based MRO demand that turned slightly positive after several years of negative volume, and the exit of the U.K. market. The Endless Assortment segment led the acceleration, with sales up 19.6% reported (21.9% daily organic constant currency) and operating margin up 190 basis points to 10.6% as Zoro U.S. grew 18.7% and MonotaRO 24.3% in local terms. On the strength of the quarter and April sales tracking north of 13%, management raised full-year 2026 EPS guidance to $44.25 to $46.25, a $1.75 midpoint increase representing nearly 15% year-over-year growth. Management flagged transitory second-quarter headwinds from private label inventory cost timing and fuel-cost leakage tied to Middle East conflict, framing full-year margins as U-shaped rather than a change in the underlying price/cost trajectory.
Competitive Dynamics | Pricing | Margin | Revenue Growth | Demand | Trade Tariffs | Cost Pressure | Innovation & R&D | |
|---|---|---|---|---|---|---|---|---|
| 2024Q4 | 3 | 3 | 6 | 5 | 2 | 3 | 2 | 2 |
| 2025Q1 | 4 | 7 | 3 | 3 | 2 | 7 | 1 | |
| 2025Q2 | 8 | 8 | 6 | 4 | 3 | 3 | 3 | 2 |
| 2025Q3 | 5 | 6 | 6 | 6 | 6 | 4 | 5 | 1 |
| 2025Q4 | 8 | 3 | 6 | 4 | 3 | 1 | 3 | 2 |
| 2026Q1 | 7 | 8 | 7 | 1 | 5 | 2 | 3 | 2 |
| '24Q4 | '25Q1 | '25Q2 | '25Q3 | '25Q4 | '26Q1 | |
|---|---|---|---|---|---|---|
| Competitive Dynamics | 3 | 4 | 8 | 5 | 8 | 7 |
| Pricing | 3 | 7 | 8 | 6 | 3 | 8 |
| Margin | 6 | 3 | 6 | 6 | 6 | 7 |
| Revenue Growth | 5 | 3 | 4 | 6 | 4 | 1 |
| Demand | 2 | 2 | 3 | 6 | 3 | 5 |
| Trade Tariffs | 3 | 7 | 3 | 4 | 1 | 2 |
| Cost Pressure | 2 | 1 | 3 | 5 | 3 | 3 |
| Innovation & R&D | 2 | 2 | 1 | 2 | 2 |
On July 31, 2026, Senior Vice President and Chief Financial Officer Deidra C. Merriwether notified the Board of her decision to resign effective September 4, 2026 to pursue another opportunity. The filing states the resignation is not due to any disagreement over operations, financial statements, internal controls, policies or practices, or the independent auditors. The Board appointed Vice President and Controller Laurie R. Thomson interim CFO effective September 5, 2026.
| Quarter | Revenue | Rev YoY | EPS | EPS YoY | Gross margin | Op margin | Net margin | FCF |
|---|---|---|---|---|---|---|---|---|
| FY2024 Q4 | $4.23B | +5.9% | $9.71 | +22.1% | 39.6% | 15.0% | 11.2% | $170M |
| FY2025 Q1 | $4.31B | +1.7% | $9.86 | +1.9% | 39.7% | 15.6% | 11.1% | $521M |
| FY2025 Q2 | $4.55B | +5.6% | $10.02 |
| Analyst | Firm | Questions (Challenge)Percentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions. |
|---|---|---|
| Chris Glynn | Oppenheimer | 13 (0%) |
| Ryan Merkel | William Blair | 13 (31%) |
| Tommy Moll | Stephens |
| +4.9% |
| 38.5% |
| 14.9% |
| 10.6% |
| $202M |
| FY2025 Q3 | $4.66B | +6.1% | $6.09 | -38.7% | 38.6% | 11.0% | 6.3% | $339M |
| FY2025 Q4 | $4.42B | +4.5% | $9.44 | -2.8% | 39.5% | 14.3% | 10.2% | $269M |
| FY2026 Q1 | $4.74B | +10.1% | $11.65 | +18.2% | 40.0% | 16.7% | 11.7% | $569M |
| FY2026 Q2 | $5.02B | +10.3% | $12.01 | +19.9% | 39.5% | 16.1% | 11.4% | $333M |
Management’s own words, often on a non-GAAP, constant-currency, or adjusted basis — so these can differ from the GAAP figures above (e.g. constant-currency revenue growth excludes currency swings).
| Dave Manthey | Robert W. Baird | 12 (0%) |
| Jacob Levinson | Melius Research | 12 (0%) |
| Chris Snyder | Morgan Stanley | 12 (33%) |
| Deane Dray | RBC Capital Markets | 11 (9%) |
| Patrick Baumann | JPMorgan | 9 (22%) |
| Steve Volkmann | Jefferies | 7 (14%) |
| Sabrina Abrams | Bank of America | 7 (29%) |
| Firm | Analysts | Questions (Challenge)Percentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions. |
|---|---|---|
| Oppenheimer | 1 | 13 (0%) |
| William Blair | 1 | 13 (31%) |
| Stephens | 1 | 13 (15%) |
| Melius Research | 1 | 12 (0%) |
| Robert W. Baird | 1 | 12 (0%) |
| Morgan Stanley | 1 | 12 (33%) |
| RBC Capital Markets | 1 | 11 (9%) |
| JPMorgan | 1 | 9 (22%) |
| Company | Score | Trend | Rev YoY |
|---|---|---|---|
GWW W. W. Grainger | 9 | +10.1% | |
| FAST Fastenal | 7 | +12.4% | |
| FERG Ferguson plc | 7 | +4.6% | |
| POOL Pool Corporation | 6 | +6.2% |