W.W. Grainger (GWW) Stock Forecast & Price Target

W.W. Grainger reported strong sales growth in the second quarter of 2025, with constant currency daily sales increasing by 5.2% in April, 6.0% in May, and 4.0% in June. The company’s performance in the last two weeks of October indicated a continuation of this trend, with daily sales growing in the 4%-5% range, aligning with the forecasted growth for the fourth quarter. Additionally, organic sales surged by 6.5%, surpassing estimates, which highlights the company’s robust demand and operational effectiveness, despite a slight contraction in operating margin.

W.W. Grainger experienced a challenging quarter, as the US maintenance, repair, and operations (MRO) market declined by 2%, despite the company achieving 2.3% volume/mix growth, suggesting potential overperformance against market trends. Adjusted earnings per share for 2Q25 were reported at $9.97, reflecting a 1% miss against expectations, while future projections estimate a decline to approximately $40.60 in EPS for 2026, indicating weaker organic revenue growth and operating margin contraction. Additionally, the company's operating results were adversely impacted by its LIFO inventory accounting, which caused an 80 basis point drop in gross margin due to tariff cost inflation, further contributing to a cautious outlook.