What Does Hubbell Offer That Grainger Does Not?

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W.W. Grainger (GWW) and Hubbell (HUBB) both say data center construction is lifting their sales, but they earn from it in different ways. Management at Grainger said the company is seeing steep growth at some branches close to data center and power generation projects, from contractors serving those sites. Hubbell makes parts such as connectors and switches, and it has also grown by buying companies. In the third quarter, its data center sales rose more than 80% organically. Both raised their 2026 forecasts within the past two weeks. So what is each raise based on?

What Are Grainger’s And Hubbell’s Higher Forecasts Based On?

Grainger raised its forecast based on demand across the business it already runs, while part of Hubbell’s raise comes from an acquired company. On November 4, Grainger’s management pointed to third-quarter strength and continued momentum as it lifted its 2026 outlook for adjusted earnings per share to $47.50 at the midpoint, from $46.38 in August. The company forecasts organic sales growth of 13% to 14.5%, measured per selling day and excluding the U.K. business it exited in 2025.

On October 27, Hubbell raised its 2026 sales growth forecast to 18.5% at the midpoint, from 17% in July. About 7.5 points of 2026 sales growth is expected to come from NSI, a business Hubbell bought, and management cited a stronger NSI contribution as one reason for the raise. Hubbell also increased its organic growth forecast, and management slightly lowered its outlook for the Utility Solutions segment. So Grainger’s raise is a statement about demand, while Hubbell’s mixes demand with a deal it has already completed.

Grainger Carries Far Less Debt Than Hubbell

At the end of September, Grainger held $3.07 billion in total debt, against $5.31 billion at Hubbell, a company worth about a third as much in the market. Management said Hubbell’s interest costs rose with the NSI and DMC Power deals, and the company has committed to paying debt down over the next two years. These deals, NSI in the Electrical Solutions segment among them, also lifted Hubbell’s adjusted operating margin in the third quarter, management said.

During the third quarter, Grainger purchased a technology for tracking customers’ inventory within its High-Touch Solutions segment, and management expects it to cost 10 to 15 basis points of operating margin over the next several quarters. Grainger also hands cash back: the company generated $661 million from operations in the third quarter and returned $396 million to shareholders through dividends and buybacks.

Hubbell Offers Faster Reported Growth, Wider Margins, Lower P/E

Over the twelve months to September 30, 2026, Hubbell’s sales grew 16.0%, against 9.1% for Grainger. Hubbell also expanded faster on average across the last three such twelve-month periods, posting 8.1% growth against 6.0% for Grainger. Hubbell bought some of that growth, though: acquisitions added 13 points to its 25% sales growth in the third quarter.

Hubbell keeps more of each sales dollar as operating profit, achieving 20.2% over the latest twelve months against 15.8% at Grainger. And you pay less for Hubbell’s earnings: its shares trade at 24.4 times earnings, against 31.5 for Grainger.

So Hubbell comes out ahead on reported growth, margin and price, but its 2026 organic growth forecast of 10% to 11% trails Grainger’s 13% to 14.5%. Grainger comes out ahead on debt, which equals 4.5% of its market value against 24.0% for Hubbell. Grainger also raised every one of its forecasts for sales, earnings and operating cash flow, while Hubbell left its forecast for reported earnings per share unchanged but raised its adjusted forecast to $20.40 to $20.60. Because part of Hubbell’s growth comes from purchases, its organic sales growth is the figure to watch when Hubbell reports in February 2027.

Grainger or Hubbell is one call. The bigger one is how to be ready for a crash and a rally.

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