Grainger Q2 2026: sales up 10.3%, EPS $12.01, outlook raised
Grainger beat on the top and bottom line: Q2 revenue of $5.02 billion rose 10.3% and EPS of $12.01 came in 5.2% above the $11.42 consensus, while management raised full-year sales and EPS guidance. The quarter leaned on real volume growth plus a $43 million tariff refund, so read the margin gain as part good business, part one-time help.
1 · Expected vs. Actual
Free preview below$12.01 of diluted EPS was up 20.5% year over year and roughly 5.2% above the $11.42 consensus estimate. The drivers were a 100 basis point lift in gross margin to 39.5%, sales leverage in Endless Assortment and a lower share count, partly offset by an effective tax rate that rose to 24.8% from 23.2%. Note that $43 million of IEEPA tariff refunds landed in cost of goods sold this quarter.
Revenue of $5.02 billion rose 10.3% from $4.55 billion a year ago, and 13.7% once you strip out currency and the exited U.K. business. Both segments grew: High Touch Solutions - N.A. delivered $3.97 billion and Endless Assortment $1.05 billion. Management attributed the gain to volume growth plus price increases that pass tariff costs through to customers.
Management raised the full-year 2026 sales range to $19.4–$19.7 billion from $19.2–$19.6 billion and the diluted EPS range to $45.50–$47.25 from $44.25–$46.25. Gross margin guidance moved up to 39.3%–39.6% and operating margin to 15.8%–16.2%. The new sales range implies growth of 8.4% to 10.0%, and the new EPS floor of $45.50 sits above the old midpoint of $45.25.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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