The strong beat and raised guidance confirm accelerating demand and margin expansion. Monitor the Q3 2026 earnings call for sustainability of tariff refund benefits and demand trends in High-Touch Solutions. The raised guidance midpoint implies ~$46.38 EPS, suggesting continued momentum into H2 2026.
Price Chart
Executive Summary
Grainger reported Q2 2026 EPS of $12.01, a 20.5% YoY increase and a 6.3% beat vs consensus of $11.30. Revenue of $5.02B grew 10.3% YoY (13.7% organic constant currency), exceeding the $4.96B consensus. The company raised its full-year 2026 EPS guidance to $45.50-$47.25 and revenue guidance to $19.4B-$19.7B, reflecting strong demand and margin expansion. Operating margin expanded 120bps to 16.1%, aided by $43M in IEEPA tariff refunds. This is a strong beat with raised guidance, signaling accelerating momentum across both segments.
Key Financial Metrics
Key Facts
- Q2 2026 diluted EPS of $12.01, up 20.5% YoY and 6.3% above consensus of $11.30
- Revenue of $5.02B, up 10.3% YoY (13.7% daily organic constant currency), above consensus of $4.96B
- Operating margin expanded 120bps to 16.1%, driven by gross margin improvement and IEEPA tariff refunds of $43M
- Full-year 2026 EPS guidance raised to $45.50-$47.25 (from $44.25-$46.25); revenue guidance raised to $19.4B-$19.7B (from $19.2B-$19.6B)
- High-Touch Solutions N.A. sales up 11.9%; Endless Assortment sales up 13.5% (20.6% organic constant currency)
- Generated $444M operating cash flow and returned $341M to shareholders via dividends and buybacks in Q2
Financial Impact
EPS beat of $0.71 (6.3%) vs consensus; revenue beat of ~$60M (1.2%) vs consensus; raised FY guidance midpoint by $1.00 on EPS and $150M on revenue
Risk Factors
- IEEPA tariff refunds ($43M) are non-recurring and may not repeat in H2 2026
- Effective tax rate increased 160bps YoY to 24.8%, pressuring net earnings
- Geopolitical uncertainty and tariff policy changes could impact demand and cost structure
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000277135-26-000076 |
| Document: gww-20260804.htm | 0000277135-26-000076 |
| Document: 0000277135-26-000076-index-headers.html | 0000277135-26-000076 |
| Document: 0000277135-26-000076-index.html | 0000277135-26-000076 |
| Document: 0000277135-26-000076.txt | 0000277135-26-000076 |
| 8-K Data (Synthetic) | 0000277135-26-000076 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 4, 2026 8w ago | 8-K | $1,294.37 $1,309.21 | ▲ +1.15% | ▲ +2.38% | $1,280.30 (−1.09%) |
Aug 3, 2026 8w ago | 8-K | $1,372.29 $1,309.49 | ▼ −4.58% | ▼ −5.81% | $1,280.30 (−6.70%) |
Jul 29, 2026 9w ago | Press Release | $1,358.92 $1,335.39 | ▼ −1.73% | ▼ −6.75% | $1,280.30 (−5.79%) |
May 12, 2026 20w ago | Insider Cluster | $1,236.08 $1,317.63 | ▲ +6.60% | ▲ +8.32% | $1,280.30 (+3.58%) |
May 7, 2026 21w ago | S-3ASR | $1,229.60 $1,300.01 | ▲ +5.73% | ▲ +5.70% | $1,280.30 (+4.12%) |
Mar 10, 2026 29w ago | DEFA14A | $1,105.87 $1,146.71 | ▲ +3.69% | ▲ +3.85% | $1,280.30 (+15.77%) |
US Market Status
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