W W Grainger beats Q3 sales and adjusted EPS estimates, raises outlook

Overview

• US industrial distributor's Q3 net sales rose 11.3%, beating analyst expectations

• Adjusted EPS for Q3 increased 22.8%, beating analyst expectations

• Company raised full-year 2026 earnings guidance

Outlook

• Company raises 2026 net sales outlook to $19.8-$20.0 bln from $19.4-$19.7 bln

• Company lifts 2026 diluted EPS guidance to $47.00-$48.00 from $45.50-$47.25

• W W Grainger now sees 2026 operating margin at 16.0%-16.2%, up from 15.8%-16.2%

Result Drivers

• VOLUME AND PRICE - Double-digit volume growth and continued price inflation drove High-Touch Solutions segment sales

• SEGMENT PERFORMANCE - Endless Assortment segment growth was driven by strong performance at MonotaRO and Zoro

• MARGIN EXPANSION - Gross profit margin benefited from expansion in Endless Assortment segment and exit from UK market

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 13 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

• Wall Street's median 12-month price target for WW Grainger Inc is $1,350.00, about 3.4% below its November 3 closing price of $1,397.98

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 29 three months ago

Reuters Recommended Reads

• Nov 3 - Global Industrial Q3 sales rise 10% on industrial, retail customers

• Nov 3 - AMETEK Q3 sales beat estimates, raises outlook

• Nov 4 - Emerson Electric Q4 sales beat estimates on broad-based demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)