W.W. Grainger, Inc. GWW
NYSEIndustrial distributionFinancials to Sep 30, 2026 · Updated Nov 11, 2026
Moat ranks
Balance sheet
| $B | Dec 31 | Sep 30 |
|---|---|---|
| Cash | 0.6 | 0.8 |
| Securities | 0.0 | 0.0 |
| Debt | 2.5 | 2.7 |
| Net cash | -1.9 | -1.9 |
| Equity | 3.7 | 4.3 |
- Debt / EBITDA
- 0.81×
- Debt / equity
- 0.62×
- Leases (9/30/26)
- $383M
- Diluted shares
- 47M
- Book value / share
- $92.17
- Price / book
- 15.9×
- Net cash / share
- −$40.70
- Market cap
- $69.0B
- Enterprise value
- $70.9B
Per-share record
Key indicators
| Indicator | Latest | Vs year ago | Last 8 quarters |
|---|---|---|---|
| Revenue growth | 11.3% | +5.1 pts | |
| Operating margin | 16.0% | +5.0 pts | |
| FCF margin | 10.5% | +3.3 pts | |
| Capex / revenue | 2.2% | -3.3 pts | |
| Endless Assortment organic sales growth | +19% | – | |
| U.S. KeepStock order share · 12/31/25 | 18.0% | – | – |
| U.S. electronic procurement order share · 12/31/25 | 24.0% | – | – |
| U.S. private-label stocked sales share · 12/31/25 | ~19.0% | – | – |
| U.S. volume outgrowth · 12/31/25 | ~2.5% | -1.2 pts |
Margins and growth from reported quarters; company KPIs as reported in results releases.
About GWW
Grainger distributes maintenance, repair and operating supplies to businesses. High-Touch Solutions serves complex North American buyers through stocked inventory, local service and purchasing integrations.
- Service Field Network
Grainger combines stocked inventory, distribution centers, local branches and sales specialists to reduce customer downtime.
- Data Workflow Lockin
Electronic purchasing links and KeepStock inventory systems put Grainger inside customer ordering and replenishment processes.
- Scale Economies Unit Cost
Grainger spreads inventory and distribution costs across a large customer base.
- Scope Economies
Zoro and MonotaRO use broad catalogs and shared product-search infrastructure to meet many purchasing needs in one place.
- Sep 30, 2026 · One-off charge −$8M
AWM acquisition-related SG&A expense, separate from $215 million acquisition cash.
- Sep 21, 2026
The Federal Circuit affirmed judgment for Grainger and other customer defendants in the Berkeley patent case because the asserted claims were not patent eligible. The ruling reduces this software litigation risk; no quantified financial effect was disclosed.
- Sep 5, 2026
Laurie Thomson became interim CFO after Deidra Merriwether resigned effective September 4. The company started a permanent CFO search, adding a finance leadership transition while distribution investment continues.
- Aug 26, 2026
Grainger bought AWM technology, intellectual property and talent assets for $215 million total cash, including $210 million paid at closing to improve inventory management. A commercial pilot must establish customer savings; management expects no material near-term earnings contribution.
- Aug 19, 2026
Grainger opened its Northwest distribution center in Gresham, Oregon, adding regional fulfillment capacity for business and public-sector customers.
Ownership
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On this page
Financial record
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | TTM | Trend | Change 2016–25 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Per share ($) | |||||||||||||
| Revenue | 166.62 | 179.74 | 198.60 | 209.22 | 219.68 | 249.46 | 298.00 | 328.90 | 350.37 | 373.79 | 411.23 | +9.4%/yr | |
| Cash flow | 16.83 | 18.22 | 18.71 | 18.98 | 20.91 | 17.95 | 26.09 | 40.54 | 43.08 | 41.98 | 47.54 | +10.7%/yr | |
| Earnings | 9.96 | 10.10 | 13.84 | 15.46 | 12.94 | 19.98 | 30.27 | 36.51 | 38.96 | 35.54 | 45.92 | +15.2%/yr | |
| Free cash flow | 12.16 | 14.14 | 14.48 | 14.95 | 17.24 | 13.07 | 21.08 | 31.66 | 32.04 | 27.73 | 36.45 | +9.6%/yr | |
| Capex | 4.67 | 4.09 | 4.23 | 4.03 | 3.67 | 4.89 | 5.01 | 8.88 | 11.04 | 14.25 | 11.08 | +13.2%/yr | |
| Dividends | 4.85 | 5.07 | 5.36 | 5.70 | 5.98 | 6.40 | 6.79 | 7.33 | 8.04 | 8.85 | 9.58 | +6.9%/yr | |
| Book value | 29.55 | 29.14 | 34.00 | 33.79 | 34.04 | 35.90 | 47.75 | 62.18 | 68.53 | 77.83 | 92.17 | +11.4%/yr | |
| Diluted shares (M) | 61 | 58 | 57 | 55 | 54 | 52 | 51 | 50 | 49 | 48 | 47 | -2.6%/yr | |
| Totals ($B) | |||||||||||||
| Revenue | 10.1 | 10.4 | 11.2 | 11.5 | 11.8 | 13.0 | 15.2 | 16.5 | 17.2 | 17.9 | 19.4 | +6.5%/yr | |
| Operating income | 1.1 | 1.0 | 1.2 | 1.3 | 1.0 | 1.5 | 2.2 | 2.6 | 2.6 | 2.5 | 3.1 | +9.4%/yr | |
| Net income | 0.6 | 0.6 | 0.8 | 0.8 | 0.7 | 1.0 | 1.5 | 1.8 | 1.9 | 1.7 | 2.2 | +12.2%/yr | |
| Free cash flow | 0.7 | 0.8 | 0.8 | 0.8 | 0.9 | 0.7 | 1.1 | 1.6 | 1.6 | 1.3 | 1.7 | +6.7%/yr | |
| Buybacks | 0.8 | 0.6 | 0.4 | 0.7 | 0.6 | 0.7 | 0.6 | 0.9 | 1.2 | 1.0 | 1.0 | +3.2%/yr | |
| Dividends | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | 0.4 | 0.4 | 0.4 | 0.5 | +4.1%/yr | |
| Net cash | -2.0 | -2.0 | -1.7 | -1.9 | -1.8 | -2.1 | -2.0 | -1.6 | -1.7 | -1.9 | -1.9 | +$0.1B | |
| Margins & returns (%) | |||||||||||||
| Gross margin | 40.6 | 39.3 | 38.7 | 38.3 | 35.9 | 36.2 | 38.4 | 39.4 | 39.4 | 39.1 | 39.4 | -1.5 pts | |
| Operating margin | 11.0 | 9.9 | 10.3 | 11.0 | 8.6 | 11.9 | 14.5 | 15.6 | 15.4 | 13.9 | 15.8 | +2.9 pts | |
| Net margin | 6.0 | 5.6 | 7.0 | 7.4 | 5.9 | 8.0 | 10.2 | 11.1 | 11.1 | 9.5 | 11.2 | +3.5 pts | |
| FCF margin | 7.3 | 7.9 | 7.3 | 7.1 | 7.8 | 5.2 | 7.1 | 9.6 | 9.1 | 7.4 | 8.9 | +0.1 pts | |
| ROIC | 22.6 | 21.3 | 24.6 | 26.0 | 21.4 | 29.6 | 38.2 | 41.2 | 39.5 | 33.8 | 37.4 | +11.3 pts | |
| Return on equity | 33.7 | 34.7 | 40.7 | 45.8 | 38.0 | 55.7 | 63.4 | 58.7 | 56.8 | 45.7 | 49.8 | +12.0 pts | |
| Stock pay % of revenue | 0.4 | 0.3 | 0.4 | 0.3 | 0.4 | 0.3 | 0.3 | 0.4 | 0.4 | 0.4 | 0.4 | +0.0 pts | |
| Capex % of revenue | 2.8 | 2.3 | 2.1 | 1.9 | 1.7 | 2.0 | 1.7 | 2.7 | 3.2 | 3.8 | 2.7 | +1.0 pts | |
Change uses 2016 and 2025 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2016 base. Trend shows the fiscal years.
Moat
Moat scorecard
- Strength
- Confidence
- Structure
- Competitive
- Durability
- durable
- Trajectory
- stable
- Pricing power
- moderate
- High-Touch Solutions N.A.79.0%3 claims
- Endless Assortment21.0%2 claims
Moat claims
- Applies to
- High-Touch Solutions N.A.
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 6, 2026
Grainger combines stocked inventory, distribution centers, local branches and sales specialists to reduce customer downtime. Its U.S. volume growth exceeded the modeled MRO market by about 250 basis points in 2025. Rivals can duplicate individual services, but matching the entire service network requires sustained investment.
The August 2026 Gresham distribution-center opening expands regional capacity, while 2025 U.S. volume outgrowth was about 250 basis points; sustained delivery and share gains remain the test of stronger protection.
- U.S. volume outgrowth~2.5%-1.2 pts
- Competitors matching delivery speeds via expanded networks
- Rising logistics/last-mile costs pressuring service economics
- Customer shift to purely digital procurement reducing branch value
- FilingW.W. Grainger, Inc. 2025 Annual Report - Distribution and sources of supplyFeb 19, 2026
- SourceGrainger March 2026 investor presentation, created March 6Mar 6, 2026
- NewsGrainger opens Gresham distribution centerAug 19, 2026
- Applies to
- High-Touch Solutions N.A.
- Confidence
- Durability
- medium
- Trajectory
- stableas of Oct 6, 2026
Electronic purchasing links and KeepStock inventory systems put Grainger inside customer ordering and replenishment processes. Electronic data interchange and procurement links originated 24% of U.S. orders in 2025; KeepStock originated 18%. Changing a supplier can require new product records, replenishment rules and staff routines.
KeepStock originated 18% of U.S. orders in 2025; the $210 million AWM technology purchase adds a potential new inventory tool, but customer adoption has not yet established stronger switching costs.
- U.S. KeepStock order share18.0%
- U.S. electronic procurement order share24.0%
- Customers standardizing on competing procurement suites/marketplaces
- Regulatory or customer pressure to enable multi-vendor integrations
- Cyber/security incidents damaging trust in integrations
- AWM technology integration may cost more or generate fewer customer savings than expected.
- FilingW.W. Grainger, Inc. 2025 Annual Report - Customers (eProcurement)Feb 19, 2026
- FilingW.W. Grainger, Inc. 2025 Annual Report - KeepStock inventory managementFeb 19, 2026
- SourceGrainger March 2026 investor presentation, created March 6Mar 6, 2026
- NewsGrainger acquires AWM technology assetsAug 26, 2026
- Applies to
- High-Touch Solutions N.A.
- Confidence
- Durability
- medium
- Trajectory
- stableas of Oct 6, 2026
Grainger spreads inventory and distribution costs across a large customer base. More than 5,000 primary suppliers support more than 1.5 million stocked products. Private-label products represented about 19% of U.S. stocked sales in 2025. This helps purchasing economics, but it does not give Grainger exclusive supply.
Private-label products still represented about 19% of U.S. stocked sales in 2025; the $43 million tariff refund makes Q2 2026 gross-profit gains a weak test of lasting cost advantage.
- U.S. private-label stocked sales share~19.0%
- Supplier disintermediation (manufacturers selling direct)
- Price transparency compressing gross margins
- Competitors achieving similar scale advantages
- FilingW.W. Grainger, Inc. 2025 Annual Report - Supply base and stocked assortmentFeb 19, 2026
- FilingW.W. Grainger, Inc. 2025 Annual Report - Private label mixFeb 19, 2026
- SourceGrainger March 2026 investor presentation, created March 6Mar 6, 2026
- Applies to
- Endless Assortment
- Confidence
- Durability
- medium
- Trajectory
- stableas of Oct 6, 2026
Zoro and MonotaRO use broad catalogs and shared product-search infrastructure to meet many purchasing needs in one place. At year-end 2025, Zoro had about 12.9 million active products and 6.266 million registered users. The catalog is easy to copy; the useful advantage is serving repeat orders economically.
Zoro registered users reached 6.266 million in 2025 despite active products falling to about 12.9 million from 14.6 million; a smaller catalog alone does not prove weaker customer value.
- Zoro U.S. active products~12,900,000-12%
- Zoro U.S. registered users6,266,000+9%
- MonotaRO registered users11,187,000+11%
- Endless Assortment organic sales growth+19%
- Competitors matching assortment via drop-ship networks
- Search/SEO changes increasing customer acquisition costs
- Price competition commoditizing long-tail SKUs
- FilingW.W. Grainger, Inc. 2025 Annual Report - Endless Assortment modelFeb 19, 2026
- FilingW.W. Grainger, Inc. 2025 Annual Report - Assortment scaleFeb 19, 2026
- SourceGrainger March 2026 investor presentation, created March 6Mar 6, 2026
- Applies to
- Endless Assortment
- Confidence
- Durability
- medium
- Trajectory
- stableas of Oct 6, 2026
Zoro uses Grainger distribution centers and supplier drop shipments rather than building a complete separate network. MonotaRO operates its own distribution centers and can spread fixed costs across a growing buyer base. Q2 2026 segment operating earnings reached $121 million, but lower-cost rivals can also expand.
Q2 2026 Endless Assortment daily organic constant-currency sales rose 20.6% and operating earnings reached $121 million; growth supports network utilization, but the filing does not isolate unit fulfillment costs.
- Zoro U.S. registered users6,266,000+9%
- MonotaRO registered users11,187,000+11%
- Endless Assortment organic sales growth+19%
- Competitors achieving similar fulfillment economics at scale
- Carrier capacity constraints and shipping cost inflation
- Supplier reliance for drop-ship affecting service consistency
- FilingW.W. Grainger, Inc. 2025 Annual Report - Zoro fulfillment modelFeb 19, 2026
- FilingGrainger Q2 2026 results, furnished August 4Aug 4, 2026
Profile change log
- Oct 6, 2026 · business change
Grainger bought AWM technology, intellectual property and talent assets for $215 million total cash, including $210 million paid at closing to improve inventory management. A commercial pilot must establish customer savings; management expects no material near-term earnings contribution.
- Oct 6, 2026 · business change
Grainger opened its Northwest distribution center in Gresham, Oregon, adding regional fulfillment capacity for business and public-sector customers.
- Oct 6, 2026 · business change
The Federal Circuit affirmed judgment for Grainger and other customer defendants in the Berkeley patent case because the asserted claims were not patent eligible. The ruling reduces this software litigation risk; no quantified financial effect was disclosed.
- Oct 6, 2026 · business change
Laurie Thomson became interim CFO after Deidra Merriwether resigned effective September 4. The company started a permanent CFO search, adding a finance leadership transition while distribution investment continues.
- Oct 6, 2026 · business change
Grainger increased its 2026 sales outlook to $19.4 billion-$19.7 billion after Q2 sales reached $5.021 billion. A $43 million tariff refund also lifted quarterly profit.
- Oct 6, 2026 · business change
Grainger sold Cromwell and completed the Zoro U.K. closure in Q4 2025, concentrating investment in North America and Japan. The $186 million Cromwell loss and $10 million closure expense were recognized in Q3 without tax benefits.
- Oct 6, 2026 · analyst revision
Primary filings and operating data support the five existing moat claims. Each claim now has a stable trajectory and an explicit competitive test. Registered users are not treated as active customers; tariff refunds are separated from evidence of stronger pricing power.
Industry & peers
Peer map
North American MRO distribution
Distribution of maintenance, repair and operating products to North American businesses and public institutions. It includes industrial safety, facilities maintenance and inventory services; it excludes original equipment production inputs.
- W.W. Grainger
- Motion
- McMaster-Carr
- The Home Depot Pro
- Fastenal
- MSC Industrial Supply
| Stocks | Moat | Gross m. | Op. m. | |
|---|---|---|---|---|
| GWW | 75 | 39.4% | 15.8% | |
| Industry median | 4 | 78 | 30.0% | 9.8% |
| Sector median | 88 | 76 | 37.3% | 18.0% |
| All stocks median | 398 | 76 | 53.1% | 20.0% |
Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.
Drivers & risks
- Routine maintenance and safety requirements sustain demand while factories operate; lower production reduces replenishment volumes.
- Business buyers simplify supplier lists and integrate purchasing systems, favoring distributors that can supply many categories reliably.
- New factories, infrastructure and data-center construction add customer sites and equipment that later need maintenance.
- Tariff and input-cost changes affect selling prices immediately; the timing of cost recovery determines distributor profit.
- A manufacturing or construction downturn reduces order volumes even when maintenance purchases remain necessary.
- Amazon Business, manufacturers and local specialists can compete on price or service; standard products have few barriers to substitution.
- Freight, wages and inventory inflation raise the cash and costs needed to maintain reliable delivery.
- Trade restrictions and import tariffs disrupt sources of supply and can force price increases that customers resist.
- Higher interest rates mainly weaken customer investment and demand; distributors also pay more for variable-rate inventory funding.
Bulls & bears
Can Grainger keep winning repeat purchasing and market share while preserving service economics after tariff refunds and price inflation fade?
Arguments
What to watch
- 1High-Touch U.S. volume growth relative to the modeled MRO market
- 2KeepStock and electronic procurement order shares
- 3Endless Assortment organic sales, registered users and operating earnings
- 4Operating cash flow and inventory investment after tariff effects
- 5AWM pilot launch and customer adoption
Next check: FY2026 results on February 2, 2027; review AWM integration, tariff-free earnings progress and the permanent CFO search.
Sources: company filings and dated sources collected for Find My Moat; market cap as of Nov 10, 2026. Not investment advice.
Free to reuse, commercially too, with a credit link. See the data license.
Moat Score 75/100 by <a href="https://www.findmymoat.com/stocks/XNYS:GWW">Find My Moat</a> (as of September 2026)Curation & Accuracy
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