# W.W. Grainger Inc. (GWW) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-13  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/GWW/thesis · /stocks/GWW/memo

## Financial Snapshot

---
ticker: GWW
step: 04
generated: 2026-05-12
source: quick-research
---

### W.W. Grainger (GWW) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2022 | FY2023 | FY2024 | YoY |
|--------|--------|--------|--------|-----|
| Revenue | $15.2B | $16.5B | $17.2B | +4.2% |
| Gross Margin | ~39.1% | ~39.4% | ~39.4% | flat |
| Operating Margin | ~14.5% | ~15.6% | ~15.5% | -0.1pp |
| Net Income | ~$1.5B | ~$1.83B | ~$1.91B | +4.4% |
| EPS (diluted) | ~$30.07 | $36.23 | $39.04 | +7.8% |

*Note: EPS compound growth has significantly outpaced revenue growth due to aggressive share repurchases (shares outstanding ~49M, down from ~55M over 5 years). Gross margin has been remarkably stable at ~39% through the post-pandemic inflation period, reflecting Grainger's pricing power with enterprise customers under multi-year contracts.*

#### Cash Flow & Balance Sheet (FY2024)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$2.1B |
| Free Cash Flow | ~$1.2B |
| Cash & Equivalents | ~$500M |
| Total Debt | ~$3.0B |

#### Key Ratios (approximate)
- P/E: ~25x (FY2024) | EV/EBITDA: ~18x | FCF Yield: ~2.5%
- Revenue Growth (FY2024): +4.2% | FCF Margin: ~7%
- Dividend Yield: ~0.8% (Dividend Aristocrat, 50+ consecutive annual increases)

#### Growth Profile
Grainger has compounded revenue at ~7–10% annually over the past decade, driven by MRO market share gains (taking share from fragmented local distributors) and volume growth in its Endless Assortment segment (Zoro U.S. + MonotaRO Japan). Operating margin stability at ~15–16% is a key quality attribute — Grainger passes through cost inflation via contract price escalators rather than absorbing it. Share repurchases have amplified per-share EPS growth to consistently outpace top-line growth. FY2025 revenue was $17.9B (+4.5%), with FY2026 guidance of $18.7–19.1B on 6.5–9.0% organic growth.

#### Forward Estimates
- FY2025 (actual): Revenue $17.9B; net income ~$2.0B
- FY2026E Revenue: $18.7B–$19.1B (company guidance); EPS ~$43–46 range
- Medium-term: Management projects ~$21.6B revenue and ~$2.4B net income by 2029 (6.3% CAGR)

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/GWW/fundamental

## Navigation

- Overview: /stocks/GWW
- Financials (this page): /stocks/GWW/financials
- Thesis: /stocks/GWW/thesis
- Investment Memo: /stocks/GWW/memo
- Coverage universe: /stocks