Grainger (GWW) reported net income of US$ 587 million in the third quarter of 2026, up 99.7% from the same period of the previous year, when it totaled US$ 294 million. Diluted earnings per share (EPS) were US$ 12.42, up 102.9%. The comparison is affected by the US$ 196 million loss recorded in 3Q25 from the company's exit from the UK market.
Revenue totaled US$ 5.2 billion (US$ 5,181 million), up 11.3%, or 14.9% on a daily, organic, constant-currency basis. Operating income was US$ 828 million, up 62.0%, with an operating margin of 16.0%, 500 basis points above 3Q25. Gross margin was 38.8%.
On an adjusted basis (non-GAAP, which excludes items the company considers non-recurring), earnings per share were US$ 12.54, up 22.8%. Adjusted operating income was US$ 836 million, with an adjusted margin of 16.1%. The 2026 adjustment relates to transaction costs from the purchase of technology assets from Adroit Worldwide Media.
By segment, High-Touch Solutions - N.A. sales rose 13.8%, with double-digit volume growth and pass-through of cost increases to prices. At Endless Assortment, sales grew 11.9%, or 19.3% on an organic basis, with performance from MonotaRO and Zoro.
Operating cash flow was US$ 661 million and free cash flow was US$ 546 million. The company returned US$ 396 million to shareholders through dividends and share repurchases. For 2026, the adjusted EPS guidance was raised to between US$ 47.00 and US$ 48.00, from US$ 45.50 to US$ 47.25 previously. The revenue guidance moved to US$ 19.8 billion to US$ 20.0 billion, from US$ 19.4 billion to US$ 19.7 billion.
