MRO supplies distributor Grainger reported its 1Q26 financial results on May 7, which showed considerable growth across the board.

The company posted total 1Q sales of $4.74 billion that were up 10.1% year-over-year, which daily, organic growth of 12.2%. Both growth measures were Grainger’s best since 1Q23 (12.2%, 14.5%).

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The organic figure doubled the forecasted mark by Baird’s Industrial Distribution Equity Research Division and far outpaced Grainger’s own guidance of 7.5% growth it provided during its 4Q25 report.

• Sales in Grainger’s High-Touch Solutions-N.A. segment were up 10.5% overall/10.0% daily-constant currency YoY, driven by volume growth and price inflation. Gross margin of 42.6% grew 20 bps YoY.
• Sales in Grainger’s Endless Assortment segment were up 19.6%/21.9% driven by strong performance at both MonotaRO and Zoro. Gross margin grew 40 bps YoY.

Meanwhile, Grainger’s 1Q gross margin of 40.0% grew 30 basis points year-over-year and likewise topped Baird and consensus market expectations of 39.2%/39.0%.

The company posted 1Q operating profit of $793 million that jumped 18% YoY on margin of $16.7% that grew 110 bps; net profit of $555 million grew 15.9%; and EBITDA margin of 18.2% grew 120 bps.

Updated 2026 Outlook

The stronger-than-expected 1Q results led Grainger to raise its 2026 full year outlook. It now expects annual sales of $19.2-$19.6 billion ($18.7-19.1B in 4Q25 report), representing growth of 6.7-9.1% (4.2-6.7%), with daily, organic constant currency growth of 9.5-12.0% (6.5-9.0%); Grainger expects 2026 gross margin of 39.2-39.5% (same); operating margin of 15.6-16.0% (15.4-15.9%).