Grainger raised its outlook for 2026 on Thursday after its first-quarter results showed double-digit growth in sales and profit, as well as rising margins.
The MRO giant — the top distributor on ID’s latest Big 50 list — reported $4.74 billion in sales in the first three months of the year, a 10.1% increase over the same period in 2025.
Sales in the company's High-Touch Solutions-N.A. division, which primarily serves larger customers, were up 10.5% over last year, which officials largely attributed to “volume growth and price inflation as tariff costs are passed.” The Endless Assortment division, meanwhile, saw 19.6% sales growth amid strong performances from online sellers Zoro and MonotaRO.
Grainger also noted that sales were up 12.2% in the quarter on a daily, organic constant currency basis, which factored the impact of foreign currency exchange and the company’s departure from the U.K. market.
The distributor’s quarterly gross profit rose by 10.9% to $1.9 billion, while operating earnings jumped by 18% to $793 million. Net earnings attributable to Grainger increased by 15.9% to $555 million.
The company’s gross margin increased by 30 basis points to 40%, and its operating margin rose by 110 basis points to 16.7%. Officials said that Grainger’s U.K. exit played a role in both margin increases.
"We delivered great results in the first quarter driven by strong execution across both segments," Grainger Chairman and CEO D.G. Macpherson said in a statement. "Despite ongoing uncertainty with tariffs and the broader geopolitical climate, we're seeing positive signs with the demand environment and are increasing our 2026 guidance to reflect the strong start and continued momentum."
The company now expects full-year sales to come in between $19.2 and $19.6 billion, up from its early February forecast of $18.7 to $19.1 billion. The new outlook would translate to annual sales growth of 6.7% to 9.1%. Grainger maintained its gross margin forecast but raised its operating margin projection to between 15.6% and 16%.
