Grainger Cuts 2025 Profit Outlook Despite Sales Growth

W.W. Grainger reported second-quarter 2025 earnings per share of $9.97, missing analyst expectations and prompting a downward revision of its annual profit guidance. Quarterly revenue rose 5.6% year over year to $4.55 billion, slightly beating estimates, but the company's operating margin and cash position declined from previous periods. Grainger now expects 2025 earnings between $38.50 and $40.25 per share, down from its earlier forecast, while raising its sales outlook to $17.9–$18.2 billion. Tariffs on imported tools have pressured margins, resulting in a lower profit forecast and a significant drop in the company’s share price. The company’s recent annualized sales growth has slowed compared to its five-year trend, reflecting shifting industry dynamics and demand cycles. CEO D.G. Macpherson emphasized maintaining strong customer relationships and a focus on innovation as key priorities amid these challenges.