W.W. Grainger, Inc. stock research
FY2026 Q1
W.W. Grainger (GWW) Gross Margin — Quarter Ended Mar 31, 2026
Gross profit is revenue minus cost of revenue. In the current quarter, revenue increased relative to both the prior quarter and the same quarter last year, while cost of revenue rose by a smaller amount, resulting in higher gross profit and an improved gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Gross profit is revenue minus cost of revenue. In the current quarter, revenue increased relative to both the prior quarter and the same quarter last year, while cost of revenue rose by a smaller amount, resulting in higher gross profit and an improved gross margin.
- The improvement in gross margin was driven by revenue growth that exceeded the increase in cost of revenue when compared to both the preceding quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, with cost of revenue also higher but at a slower pace. Versus the same quarter one year earlier, all metrics were higher and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.0%
Gross profit
$1.9B
Revenue
$4.7B
Cost of revenue
$2.8B
Quarter-over-quarter change
+0.5 pts
Year-over-year change
+0.3 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2026 | $4.7B | $1.9B | $2.8B | 40.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+0.5 pts
Year-over-year change
Mar 31, 2025
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by revenue growth that exceeded the increase in cost of revenue when compared to both the preceding quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, with cost of revenue also higher but at a slower pace. Versus the same quarter one year earlier, all metrics were higher and gross margin improved.
Monitor the trend in cost of revenue relative to revenue to assess whether the gross margin improvement can be sustained.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| W.W. Grainger, Inc. (GWW) | 40.0% |