JPMorgan Lowers W.W. Grainger (GWW) PT to $1,035 Amidst Mixed Q2 Results, Gross Margin Pressure.

W.W. Grainger Inc. (NYSE:GWW) is one of the stocks to invest in before they split next. On September 4, JPMorgan lowered the firm’s price target on W.W. Grainger Inc. (NYSE:GWW) to $1,035 from $1,125, while maintaining a Neutral rating on the shares. JPMorgan updated the estimates for the US distributors to reflect the recent earnings results. In Q2 2025, the company’s total sales reached ~$4.6 billion, which marked a 5.6% increase year-over-year.

The diluted EPS for this quarter was $9.97, which was an increase of $0.21 or 2.2% from the previous year. Despite strong sales growth, W.W. Grainger Inc.’s operating margin declined by 0.5% to 14.9% due to gross margin pressures.

The company’s Endless Assortment segment, which includes Zoro US and MonotaRO, was a key growth driver, with sales increasing by 19.7%. Conversely, the High-Touch Solutions segment experienced more muted growth, with sales up only 2.5%. W.W. Grainger Inc. adjusted its 2025 EPS outlook downward, with the new range now between $38.50 and $40.25, representing a roughly 1% increase at the midpoint compared to the previous year.

W.W. Grainger Inc. (NYSE:GWW) distributes maintenance, repair, and operating products & services primarily in North America, Japan, and the UK. It has 2 segments: High-Touch Solutions North America and Endless Assortment.

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Disclosure: None. This article is originally published at Insider Monkey.