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

W.W. Grainger has demonstrated strong sales growth, with total company constant currency daily sales increasing by 5.2% in April, 6.0% in May, and 4.0% in June of 2Q25. The company's Endless Assortment segment experienced particularly robust performance, with organic sales up 14.6%, surpassing market expectations. Grainger's guidance for constant currency daily sales growth in 4Q25 is projected between 4.5% and 6.0%, indicating a positive outlook for continued sales momentum.

W.W. Grainger reported a 2.3% volume/mix growth for the quarter in a US MRO market that saw a decline of 2%, indicating a modest outperformance yet highlighting underlying challenges. The company experienced an adjusted EPS of $9.97, falling short of expectations and reflecting weaker organic revenues and operating margin contraction that could lead to an estimated EPS of ~$40.60 in 2026. Additionally, management attributed the operating miss and lowered guidance to LIFO inventory accounting, which negatively affected gross margins by 80 basis points due to tariff cost inflation, suggesting ongoing financial pressures and a less favorable outlook.