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REVENUE
3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Grainger serves a large number of customers in diverse industries, which are subject to different economic and market-specific factors. The Company's revenue is primarily comprised of MRO product sales and related activities.

The Company's presentation of revenue by reportable segment and customer industry most reasonably depicts how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic and market-specific factors. The majority of Company revenue originates from contracts with a single performance obligation to deliver products, whereby performance obligations are satisfied when control of the product is transferred to the customer per the arranged shipping terms.

The following table presents the Company's percentage of revenue by reportable segment and customer industry:
Three Months Ended March 31,
2026
2025
Customer Industry(1)
High-Touch Solutions N.A.Endless AssortmentTotal CompanyHigh-Touch Solutions N.A.Endless Assortment
Total Company(2)
Manufacturing31 %29 %30 %31 %30 %31 %
Government18 %%15 %18 %%15 %
Wholesale%18 %10 %%19 %10 %
Commercial Services%12 %%%12 %%
Contractors%12 %%%12 %%
Healthcare%%%%%%
Retail%%%%%%
Transportation%%%%%%
Utilities%%%%%%
Warehousing%%%%— %%
Other(3)
10 %15 %11 %10 %15 %11 %
Total net sales100 %100 %100 %100 %100 %100 %
Percent of total company revenue79 %21 %100 %79 %19 %100 %
(1)Customer industry results for the three months ended March 31, 2026 and 2025 primarily use the North American Industry Classification System (NAICS). As customers' businesses evolve, industry classifications may change. When these changes occur, Grainger does not recast the customer classification for prior periods as the industry used in the prior period was appropriate at the point-in-time. As a result, year-over-year changes may be impacted.
(2)Total Company includes other businesses, which included the Cromwell business through the date of divestiture in the fourth quarter of 2025. For further details on the sale, see Note 2 of the Notes to Consolidated Financial Statements in Part II, Item 8: Financial Statements and Supplementary Data in the Company’s 2025 Form 10-K. Other businesses accounted for approximately 2% of total Company revenue for the three months ended March 31, 2025.
(3)Other primarily includes revenue from industries and customers that are not material individually, including hospitality, restaurants, property management and natural resources.

Total accrued sales incentives are recorded in Accrued expenses and were approximately $116 million and $115 million as of March 31, 2026 and December 31, 2025, respectively.

The Company did not have any material unsatisfied performance obligations, contract assets or liabilities as of March 31, 2026 and December 31, 2025.