W.W. Grainger reported fourth-quarter earnings per share of $9.44, narrowly outpacing the consensus estimate of $9.43. Revenue for the period reached $4.43 billion, representing a 4.5% increase year-over-year. Sales growth was driven in part by the company’s Endless Assortment program, which expanded customer access to over 1.8 million SKUs and helped offset pressure on product margins.

Despite top-line growth, Grainger’s operating margin contracted by 70 basis points to 14.3% in the quarter. The decline reflects elevated logistics and supply-chain costs as well as ongoing investments in digital capabilities. Diluted earnings per share fell 2.8% compared to the year-ago quarter, underscoring the margin headwinds in a challenging macroeconomic environment.

For the full year 2025, Grainger generated sales of $17.9 billion, up 4.5% from 2024. The annual operating margin declined 150 basis points to 13.9%, though on an adjusted basis it was 15.0%, down only 50 basis points. Full-year diluted EPS was $35.40, a decrease of 8.6%, while adjusted EPS rose 1.3% to $39.48. The company produced $2.0 billion in operating cash flow and returned $1.5 billion to shareholders through dividends and share repurchases.

Grainger enters 2026 with a solid balance sheet, featuring a debt-to-equity ratio of 0.76 and a current ratio of 2.72. Management projects daily organic constant-currency sales growth of 6.5% to 9.0% for the year, driven by continued digital expansion, enhanced customer service initiatives, and ongoing cost discipline. The company’s valuation metrics, including a price-to-earnings ratio of 31.47 and a price-to-sales ratio of 3.04, reflect investor confidence in its growth trajectory.