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

W.W. Grainger reported solid financial performance during 2Q25, with total company constant currency daily sales increasing by 5.2% in April, 6.0% in May, and 4.0% in June, indicating consistent demand across its customer segments. The "endless assortment" segment demonstrated particularly strong growth, with organic sales rising 14.6%, reflecting robust performance against market expectations. Additionally, overall organic sales growth of 6.5% surpassed the estimated 5.6%, which further supports a positive outlook on the company's financial stability and growth potential.

W.W. Grainger reported a 2.3% volume/mix growth despite a downturn in the US MRO market, which was down 2% during the quarter, suggesting a modest market outperformance. However, the company experienced an adjusted EPS of $9.97 for 2Q25, which represented an 11 cent miss versus expectations, leading to projected weaker organic revenues and operating margin contraction, with estimated EPS for 2026 at approximately $40.60. Additionally, the LIFO inventory accounting treatment negatively affected gross margins by 80 basis points due to tariff cost inflation, contributing to the lowered guidance and overall negative outlook on the company's financial performance.