Grainger shares rise 6.6% after raising 2026 EPS forecast
Grainger topped the $11.78 consensus EPS estimate with $12.54 adjusted EPS for Q3 and raised its 2026 EPS forecast to $47.00 to $48.00, from $45.50 to $47.25. Shares rose 6.6% in regular trading.
Key takeaways
- Grainger (GWW) shares rose 6.6% in regular trading on Nov. 4. The company said its third-quarter adjusted earnings per share were $12.54 per share, above the $11.78 consensus estimate, on revenue of $5.18 billion. It raised its 2026 adjusted EPS forecast to $47.00 to $48.00, from $45.50 to $47.25.
Grainger (GWW) shares rose 6.6% in regular trading as of 10:05 a.m. ET on Nov. 4, from a regular-session close of $1,397.98.
Grainger (GWW) said on Nov. 4 that third-quarter adjusted diluted earnings per share were $12.54, above the $11.78 consensus estimate, and it raised its full-year adjusted EPS forecast. Revenue was $5.18 billion, above the $5.13 billion estimate.
Here's how the company did:
- Adjusted diluted EPS: $12.54 vs. $11.78 expected
- Reported diluted EPS: $12.42 vs. $6.12 a year earlier
- Revenue: $5.18 billion vs. $4.66 billion a year earlier
- Operating cash flow: $661 million
The company said sales rose 11.3% from the third quarter of 2025. On a daily, organic constant currency basis, sales rose 14.9%.
In the High-Touch Solutions - N.A. segment, sales were up 13.8%. Endless Assortment sales rose 11.9%, or 19.3% on a daily, organic constant currency basis, driven by MonotaRO and Zoro.
2026 guidance
The company raised its 2026 diluted adjusted EPS range to $47.00 to $48.00, from $45.50 to $47.25 given on Aug. 4. Sales growth is now expected at 10.1% to 11.6%, up from 8.4% to 10.0%.
Operating cash flow is now expected at $2.35 billion to $2.45 billion, from $2.25 billion to $2.4 billion.
“The third quarter performance reflects our consistent execution and an improving demand environment,” said D.G. Macpherson, Chairman and CEO. “Following another quarter of strong performance, we are increasing our 2026 guidance and remain on track for an exceptional year.”
Costs and cash
Reported operating earnings were $828 million, up 62.0% from $511 million a year earlier. Adjusted operating margin was 16.1%, up 90 basis points. Adjusted results exclude transaction costs tied to the acquisition of technology assets from Adroit Worldwide Media, Inc.
The company generated $661 million of operating cash flow and $546 million of free cash flow after $115 million of capital expenditures. It returned $396 million to shareholders through dividends and share repurchases.
Net income attributable to shareholders rose in each of the last three quarters, from $294.0 million in the third quarter of 2025 to $570.0 million in the second quarter of 2026, according to its SEC filings.