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what it is
Grainger sells the gloves, motors, valves, and safety gear businesses need to keep factories, hospitals, and warehouses running.
how it gets paid
Last year Gww made $17.9B in revenue. High-Touch Solutions N.A. was the main engine at $14.4B, or 80% of sales.
why it's growing
Revenue grew 4.5% last year. The business still posted 2025 EPS of $39.75 versus $38.71 in 2024.
what just happened
Grainger's last report missed on EPS, with $9.47 versus the $9.71 analysts expected.
At a glance
A balance sheet — strong enough to weather a downturn
85/100 earnings predictability — you can trust these numbers
24.1x trailing p/e — priced about right
1.0% dividend yield — cash in your pocket every quarter
33.5% return on capital — every dollar works hard here
xvary composite: 73/100 — average
What they do
Grainger sells the gloves, motors, valves, and safety gear businesses need to keep factories, hospitals, and warehouses running.
Grainger wins with density. It runs 454 branches and 32 distribution centers, so your plant manager can get a replacement part fast instead of explaining downtime later. Switching costs (changing suppliers is painful) are real when Grainger also embeds purchasing and inventory tools into your workflow, and 26,500 employees keep that machine moving.
How they make money
$17.9B
annual revenue · their business grew +4.5% last year
High-Touch Solutions N.A.
$14.4B
+6.1%
Endless Assortment
$3.1B
+4.5%
Integrated Supply services
$0.2B
+4.5%
Lab Safety Supply
$0.1B
+4.5%
Other services and information
$0.1B
+4.5%
The products that matter
service-led mro distribution
High-Touch Solutions N.A.
$14.6B · 81.6% of segment revenue shown
this is the core engine. It also produced $3.63B in q3 2025 revenue, which shows how much of grainger still depends on high-frequency replenishment and service.
core engine
online mro marketplace
Endless Assortment
$3.3B · +8.5% growth
this segment brought in $935M in q3 2025 revenue. It matters because it expands catalog breadth and gives grainger a lower-touch way to win smaller orders.
faster growth
Key numbers
33.5%
return on capital
Return on capital → profit from each dollar invested → so what: Grainger turns every $1 invested into about $0.34 of profit, which is elite for a distributor.
20.5%
operating margin
Operating margin → what is left after running the business → so what: Grainger keeps about $0.21 of operating profit from each sales dollar while many distributors live on much thinner spreads.
5%
debt to capital
Debt to capital → how much of the business is financed with debt → so what: only 5% of capital comes from long-term debt, so balance-sheet risk is low.
24.1x
trailing p/e
P/E → years of earnings you are paying for → so what: you are paying a premium price for reliability, which leaves less room for mistakes.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 85 / 100
- long-term debt $2.4B (5% of capital)
- net profit margin 9.5% — keeps 10 cents of every dollar in revenue
- return on equity 44% — $0.44 profit for every $1 investors have put in
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in GWW 3 years ago → it's now worth $16,610.
The index would have given you $13,920.
source: institutional data · total return
What just happened
missed estimates
Grainger's last report missed on EPS, with $9.47 versus the $9.71 analysts expected.
The business still posted 2025 EPS of $39.75 versus $38.71 in 2024. But tariff-related inflation and softer price-cost timing kept investors from giving the miss a free pass.
$13.5B
revenue
$9.47
eps
38.9%
gross margin
the number that mattered
The key number was the 2.47% EPS miss, because premium stocks get judged on precision, not just growth.
-
the investment community seems to be approaching w.w.
-
grainger shares with some hesitation.
-
the equity has declined slightly in value since our september report, adding to losses suffered earlier this year.
-
although the equity rests above its 52-week low, the recent quotation is roughly 15% lower than the oneyear high.
-
the stance is not too surprising given broader market challenges discussed below.
source: company earnings report, 2026
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What could go wrong
the top risk is premium multiple compression on a distributor's earnings.
high
premium multiple compression
grainger trades at 24.1x earnings, about 40% above the industrial sector average cited in this snapshot. If growth or margins slip, the market can decide a distributor should trade like a distributor again.
a move from a 24.1x multiple back toward that sector average would imply roughly 29% less multiple support
med
gross margin pressure
gross margin fell 120 basis points last quarter because of tariff inflation and LIFO inventory costs. On a business with a 9.5% net margin, that kind of move does real damage.
a 1.2-point gross margin hit is meaningful when the whole company only keeps about 10 cents on the dollar
med
labor and service cost inflation
grainger's advantage comes partly from service, branch coverage, and procurement support. That also means wage inflation can squeeze the model if pricing lags costs.
this risk hits operating income directly, and the page already flags roughly $1.8B of annual operating income as the profit pool to protect
24.1x earnings and a 9.5% net margin is a demanding combination. You are being paid for quality, not for sloppiness.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
q1 2026 earnings report
expected on or around april 29, 2026. Watch whether gross margin stabilizes after the 120-basis-point hit.
guidance
fy2026 EPS guide of $42.25–$44.75
that range is the market's near-term scorecard. If results start leaning below the low end, the premium valuation gets harder to defend.
segment mix
endless assortment growth versus high-touch growth
Endless Assortment grew 8.5% versus 6.1% for High-Touch Solutions. If that gap widens, grainger looks more digitally durable.
ownership
institutional selling streak
institutions were net sellers for two straight quarters. If that continues after earnings, it tells you big money still thinks the stock is priced for too much perfection.
Analyst rankings
earnings predictability
85 / 100
this business tends to produce steady numbers. in human-speak, analysts think grainger is easier to model than most industrial stocks.
price stability
85 / 100
the stock has been steadier than most. That does not make it cheap. It makes the market more willing to pay up for consistency.
risk rank
2
a rank of 2 means lower balance-sheet and business risk than most public companies. The real debate sits in valuation, not solvency.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 456 buyers vs. 588 sellers in 3q2025. total institutional holdings: 34.2M shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$833
$1591
$959
current price
$1295
target midpoint · +35% from current · 3-5yr high: $1490 (+55% · 12% ann'l return)
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