W.W. Grainger (GWW)
W.W. Grainger (GWW) distributes maintenance, repair, and operating supplies to businesses across North America through branches, warehouses, and logistics. In ETFpedia it represents the Heavy Asset Low Obsolescence (HALO) concept, because keeping factories and facilities running depends on physical inventory and a delivery network that software alone cannot replace.
| Ticker | GWW |
|---|---|
| Exchange | NYSE |
| Sector | Industrials · Industrial Distribution |
| Country | United States |
| Held by ETF | Roundhill HALO ETF (LOHA) |
| Wikidata | Q8023363 |
| Last updated | 2026-06-04 |
Next event:Next earnings · Q2 2026, confirmed · Scheduled for August 4, 2026 (07:00 AM CT) per Grainger investor relations. Last report: Q1 2026 on 2026-05-07. (source)
Latest reported quarter:Q1 2026 (ended Mar 31, 2026) (reported2026-05-07)
Grainger reported sales of $4.7 billion, up 10.1% (12.2% on a daily, organic constant-currency basis), with operating margin of 16.7% and diluted EPS of $11.65, up 18.2% year over year, prompting a raised full-year outlook.
| Net sales | $4,742M+10.1%YoY · +12.2% daily organic constant currency |
|---|---|
| Operating margin | 16.7%+110 bpsYoY |
| Diluted EPS | $11.65+18.2%YoY |
| Gross margin | 40.0%+30 bpsYoY |
Revenue by segment
| High-Touch Solutions N.A. | $3,752M · 79%of revenue+10.5% YoY |
|---|---|
| Endless Assortment | $990M · 21%of revenue+19.6% YoY |
Guidance:Full-year 2026
| Total sales growth | +6.7% to +9.1% · raised at Q1 2026 |
|---|---|
| Daily organic constant-currency sales growth | +9.5% to +12.0% |
| Diluted EPS | $44.25 to $46.25 · ~15% growth at the midpoint |
Recent & upcoming events
- · Q1 2026 results; full-year guidance raised.Sales of $4.7B (+10.1%), diluted EPS $11.65 (+18.2%); guidance lifted to EPS of $44.25–$46.25. (source)
- · 55th consecutive year of dividend increases.Grainger raised its quarterly dividend about 10%, extending one of the longest dividend-growth streaks in the market. (source)
Segment net sales (High-Touch Solutions N.A. $3,752M + Endless Assortment $990M) sum to the consolidated $4,742M. Guidance figures are as raised at the Q1 2026 report.
Figures are as of 2026-06-04 and reflect the most recent public filings/IR releases; they are updated after each earnings report.
What does W.W. Grainger do?
Grainger is the company a plant manager calls when something breaks. It stocks and ships maintenance, repair, and operating supplies, the gloves, motors, fittings, and safety gear that keep facilities running, and it gets them there fast through a wide network of branches and distribution centers (Grainger Q1 2026). Most customers are businesses, not consumers. The company runs two segments: a large High-Touch Solutions arm in North America, which booked $3,752 million in sales in the first quarter of 2026, and the e-commerce-led Endless Assortment unit (Zoro and MonotaRO), which added $990 million (Grainger Q1 2026).
The U.S. market for these supplies is worth roughly $92 billion and is highly fragmented; even Grainger, the leader, holds only about 7% of it (Mordor Intelligence). That leaves a long runway to take share.
Even Grainger, the market leader, holds only about 7% of the roughly $92 billion U.S. MRO market — no single player has the scale to set pricing.
Why is W.W. Grainger a HALO company?
The moat is service and inventory you can touch. Customers pay for the certainty that the right part is in stock and on a truck today. Software helps Grainger run that network better, but it cannot replace the warehouses, the stock, or the trucks. That physical backbone is what the Heavy Asset Low Obsolescence (HALO) concept is built around. Stocking, picking, and delivering parts are physical tasks that sit low on the AI exposure scale (Eloundou et al., Science 2024).
Scale compounds the advantage. A distributor that already holds the inventory and runs the routes can serve the next customer at lower marginal cost, which is why the leader keeps gaining share in a market no rival is large enough to dominate.
What did W.W. Grainger report most recently?
In Q1 2026 (the quarter ended March 31, 2026), Grainger reported net sales of $4.7 billion, up 10.1% year over year, or 12.2% on a daily, organic constant-currency basis (Grainger Q1 2026). Operating margin reached 16.7%, up 110 basis points, and diluted EPS came in at $11.65, up 18.2%. High-Touch Solutions sales rose 10.5%, while Endless Assortment grew 19.6% on strength at MonotaRO and Zoro. The quarter also marked Grainger’s 55th straight year of dividend increases.
What is W.W. Grainger’s guidance?
Grainger raised its full-year 2026 outlook at the Q1 report, citing a strong start and continued demand momentum despite tariff and geopolitical uncertainty. It now guides to total sales growth of 6.7%–9.1%, daily organic constant-currency sales growth of 9.5%–12.0%, and diluted EPS of $44.25–$46.25, about 15% growth at the midpoint (Grainger Q1 2026). The next earnings report is scheduled for August 4, 2026 (Grainger IR).
What are the risks for W.W. Grainger?
- Industrial cyclicality. Demand tracks manufacturing activity, so a factory slowdown shows up quickly in sales.
- Price competition. Other distributors and large online marketplaces compete on price, which can pressure margins over time.
- Tariffs and inflation. Management is passing tariff costs through to prices; if demand softens, that pass-through gets harder.
- Endless Assortment exposure. The e-commerce segment carries thinner margins and leans on MonotaRO in Japan, adding currency and regional risk.
Related securities, concepts & terms
- Heavy Asset Low Obsolescence (HALO)parent
- J.B. Hunt (JBHT)sibling
Related indices & ETFs
- Roundhill HALO ETF (LOHA) · Roundhill InvestmentsTracks the Akros U.S. HALO Index, which includes this company.
Frequently asked questions about W.W. Grainger
What does W.W. Grainger do?
Grainger distributes maintenance, repair, and operating supplies, the parts and equipment that keep plants and facilities running, through branches, distribution centers, and a large logistics network in North America and abroad. It reports two segments: High-Touch Solutions N.A. and the e-commerce-led Endless Assortment.
Why is W.W. Grainger part of the HALO concept?
When a machine breaks, a plant needs the right part fast. That depends on Grainger's physical inventory and delivery network, a real-world moat that AI can make more efficient but cannot replace. Stocking, picking, and delivering parts are physical tasks that sit low on the AI-exposure scale. The market is also huge and fragmented: even Grainger, the leader, holds only about 7% of the roughly $92 billion U.S. MRO market.
When does W.W. Grainger report its next earnings?
Grainger is scheduled to report Q2 2026 results on August 4, 2026, at 7:00 AM CT, a date confirmed on its investor-relations calendar. It last reported Q1 2026 on May 7, 2026, when it beat estimates and raised full-year guidance.
What was W.W. Grainger's latest quarterly revenue?
In Q1 2026 (the quarter ended March 31, 2026), Grainger reported net sales of $4.7 billion, up 10.1% year over year, or 12.2% on a daily, organic constant-currency basis. Diluted EPS was $11.65, up 18.2%, and operating margin reached 16.7%. High-Touch Solutions N.A. sales rose 10.5% to $3,752 million while the e-commerce-led Endless Assortment segment grew 19.6% to $990 million.
What is W.W. Grainger's guidance?
At its Q1 2026 report, Grainger raised full-year 2026 guidance to total sales growth of 6.7%–9.1%, daily organic constant-currency sales growth of 9.5%–12.0%, and diluted EPS of $44.25–$46.25, about 15% growth at the midpoint, citing a strong start and continued demand momentum.
Sources & references
- Grainger reports results for the first quarter 2026 · W.W. Grainger, Inc., 2026-05-07
- W.W. Grainger, Inc. Q1 2026 results (Form 8-K, Exhibit 99.1) · W.W. Grainger, Inc. / U.S. SEC EDGAR, 2026-05-07
- Q2 2026 Grainger Earnings Release · investor events · W.W. Grainger, Inc., 2026-06-02
- W.W. Grainger, Inc. · 2025 Annual Report (Form 10-K) · W.W. Grainger, Inc., 2026-02-12
- NYSE listed company information · GWW · New York Stock Exchange, 2026-06-02
- United States MRO Market (size and fragmentation) · Mordor Intelligence, 2025-01-01
- GPTs are GPTs: Labor market impact potential of LLMs · Eloundou, Manning, Mishkin & Rock · Science, 2024-06-21