W.w. Grainger Stock Earnings Reports

Grainger delivered a solid Q3 2025: reported sales were ~$4.7B (up ~5.4% daily constant currency), gross margin 38.6%, operating margin 15.2%, diluted EPS $10.21, and operating cash flow $597M with $399M returned to shareholders. Key positives: strong execution in North America and Japan, continued momentum in the Endless Assortment segment (Zoro and MonotaRO) with double-digit top-line growth and margin expansion, effective pricing/marketing actions at Zoro, and ongoing investments in technology and AI to improve customer experience and productivity. Primary near-term headwinds: LIFO-related tariff/inventory accounting impacts (timing-driven), tariff/Section 232 inflationary pressure requiring additional supplier negotiations and incremental pricing, and a government shutdown that is currently weighing on public sector sales (estimated meaningful daily impact if prolonged). Strategic action: announced agreement to sell U.K.-based Cromwell and exit the U.K., removing modest revenue (~$40M in Q4) and expected to improve consolidated operating margin (~20 bps annualized). Guidance update: narrowed full-year adjusted EPS to $39.00–$39.75 and daily organic constant currency sales growth of 4.4%–5.1%; company expects gross margins to stabilize around ~39% over time as inflation/LIFO dynamics normalize. Management reiterated confidence in long-term earnings framework: share gain in U.S., EA growth, gross margin stabilization, and SG&A growth below sales through productivity and tech investments.