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

W.W. Grainger has demonstrated a robust growth trajectory, with total company constant currency daily sales increasing by 5.2% in April, 6.0% in May, and 4.0% in June of 2Q25, indicating solid demand across its segments. The essential assortment segment reported impressive organic sales growth of 14.6%, surpassing consensus expectations, while overall organic sales grew by 6.5%, exceeding previous estimates. Additionally, the company anticipates continued sales growth, projecting constant currency daily sales to range between 4.5% and 6.0%, reflecting a positive outlook for its operational momentum.

W.W. Grainger experienced a decline in the US MRO market, which contracted by 2% during the quarter, yet the company managed to achieve 2.3% volume/mix growth, reflecting a market outperformance of about 430 basis points. Despite this performance, the adjusted earnings per share for 2Q25 came in at $9.97, representing a miss of $0.11 or 1%, leading to concerns over weaker organic revenues and an anticipated operating margin contraction with estimated EPS of approximately $40.60 for 2026. The company's financial outlook was further complicated by its LIFO inventory accounting treatment, which adversely affected gross margins by 80 basis points due to tariff cost inflation, contributing to a revised and softer growth framework for 4Q25.