Grainger Raises 2026 Outlook After Strong Second Quarter Gains

Chairman and CEO D.G. Macpherson credited the company’s performance to consistent execution and high service levels. The results were bolstered by volume growth and strategic pricing, particularly within the High-Touch Solutions and Endless Assortment segments. Operating margins reached 16.1%, a 120-basis-point improvement over the same period last year, helped in part by IEEPA tariff refunds that reduced the cost of goods sold by $43 million.

Financial momentum across the business led the company to raise its full-year sales growth outlook to a range of 8.4% to 10.0%. The updated guidance also projects adjusted diluted earnings per share between $45.50 and $47.25. During the second quarter, Grainger generated $444 million in operating cash flow and returned $341 million to shareholders through dividends and share repurchases, maintaining a disciplined capital allocation strategy despite a higher effective tax rate of 24.8%.