W.W. Grainger, Inc. stock research
FY2025 Q4
W.W. Grainger (GWW) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and cost of revenue both decreased from the prior quarter, while gross profit declined slightly. Gross margin improved compared to the prior quarter but was nearly stable relative to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and cost of revenue both decreased from the prior quarter, while gross profit declined slightly. Gross margin improved compared to the prior quarter but was nearly stable relative to the same quarter one year earlier.
- The improvement in gross margin from the prior quarter was driven by a proportionally larger decline in cost of revenue relative to revenue. This relationship was the strongest observable factor in the current quarter's margin performance.
- Compared to the immediately preceding quarter, revenue and cost of revenue were lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue was higher, cost of revenue was higher, gross profit was similar, and gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.5%
Gross profit
$1.7B
Revenue
$4.4B
Cost of revenue
$2.7B
Quarter-over-quarter change
+0.8 pts
Year-over-year change
-0.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $4.3B | $1.7B | $2.6B | 39.7% |
| Jun 30, 2025 | $4.6B | $1.8B | $2.8B | 38.5% |
| Sep 30, 2025 | $4.7B | $1.8B | $2.9B | 38.6% |
| Dec 31, 2025 | $4.4B | $1.7B | $2.7B | 39.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+0.8 pts
Year-over-year change
Dec 31, 2024
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the prior quarter was driven by a proportionally larger decline in cost of revenue relative to revenue. This relationship was the strongest observable factor in the current quarter's margin performance.
Compared to the immediately preceding quarter, revenue and cost of revenue were lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue was higher, cost of revenue was higher, gross profit was similar, and gross margin was slightly lower.
Monitor whether the relationship between revenue and cost of revenue continues to shift in a way that supports or pressures gross margin in upcoming quarters.