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 tables present the Company's percentage of revenue by reportable segment and by customer industry:
 Twelve Months Ended December 31,
2025
2024
2023
Customer Industry(1)
High-Touch Solutions N.A.Endless Assortment
Total Company (2)
High-Touch Solutions N.A.Endless Assortment
Total Company (2)
High-Touch Solutions N.A.Endless Assortment
Total Company (2)
Manufacturing30 %30 %30 %31 %29 %31 %30 %30 %30 %
Government19 %%15 %19 %%16 %19 %%16 %
Wholesale%18 %%%18 %%%16 %%
Commercial Services%12 %%%12 %%%12 %%
Contractors%12 %%%12 %%%12 %%
Healthcare%%%%%%%%%
Transportation%%%%%%%%%
Retail%%%%%%%%%
Utilities%%%%%%%%%
Warehousing%— %%%— %%%— %%
Other(3)
10 %15 %11 %10 %16 %11 %10 %17 %11 %
Total net sales100 %100 %100 %100 %100 %100 %100 %100 %100 %
Percent of total company revenue78 %20 %100 %80 %18 %100 %81 %18 %100 %
(1)Customer industry results for the twelve months ended December 31, 2025, 2024 and 2023 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, which includes the Cromwell business. The Cromwell business was sold in December 2025. For further details on the sale, see Note 2. Other accounted for approximately 2%, 2% and 1% of Total Company revenue for the twelve months ended December 31, 2025, 2024 and 2023, respectively.
(3)Other primarily includes revenue from industries and customers that are not material individually, including hospitality, restaurants, property management and natural resources.

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 20, 2025
2023Feb 22, 2024
2022Feb 21, 2023
2021Feb 23, 2022
2020Feb 24, 2021
2019Feb 20, 2020
2018Feb 28, 2019
2017Feb 26, 2018
2016Feb 28, 2017
2015Feb 29, 2016

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.