Why This Matters to Distributors: Grainger’s results show that large distributors continue to rely on pricing actions, digital growth, and operational scale to manage tariff-related costs and economic uncertainty. The continued growth of Zoro and MonotaRO also highlights the expanding role of ecommerce platforms as distributors compete on product assortment, purchasing convenience and delivery speed.
Grainger reported higher first quarter sales and earnings as growth in its North American operations and digital businesses offset continued tariff and geopolitical uncertainty.
The Chicago-based distributor said first quarter sales increased 10.1% year over year to $4.74 billion, up from $4.31 billion in the same period last year. Net earnings attributable to the company rose 15.9% to $555 million from $479 million a year earlier.
Operating earnings increased 18.0% to $793 million from $672 million in the prior-year quarter, while gross profit rose 10.9% to $1.90 billion from $1.71 billion.
“We delivered great results in the first quarter driven by strong execution across both segments,” Chairman and CEO D.G. Macpherson. “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.”
Sales in Grainger’s High-Touch Solutions North America segment increased 10.5% year over year, driven by higher customer purchasing volumes and price increases tied to tariffs, the company said. Sales in the Endless Assortment segment, which includes Zoro and MonotaRO, increased 19.6% from the prior year.
Grainger said growth in the Endless Assortment business was led by robust performance at both Zoro and MonotaRO.
Gross profit margin increased to 40.0% from 39.7% a year earlier, while operating margin rose to 16.7% from 15.6%. The company said margins benefited from performance improvements across both operating segments and the previously announced exit from its U.K. operations.
Cash flow from operating activities increased to $739 million from $646 million in the first quarter of 2025. Grainger spent $170 million on capital expenditure during the quarter and returned $345 million to shareholders through dividends and stock repurchases.
Following the quarter’s results, Grainger increased its full-year guidance. The company now expects sales between $19.2 billion and $19.6 billion, compared with its previous forecast of $18.7 billion to $19.1 billion. Grainger also raised its diluted earnings per share outlook to a range of $44.25 to $46.25, up from its earlier forecast of $42.25 to $44.75.
The company said it now expects full-year sales growth between 6.7% and 9.1%.
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