Shares of W.W. Grainger (NYSE: GWW) surged 5.37% in Thursday's pre-market trading after the industrial supply company reported better-than-expected first-quarter earnings and reaffirmed its full-year 2025 guidance.

The Lake Forest, Illinois-based distributor of maintenance, repair, and operating products announced earnings of $9.86 per share for Q1 2025, surpassing the analyst consensus estimate of $9.54 by 3.35%. This represents a 2.49% increase from the $9.62 per share reported in the same period last year. While quarterly revenue of $4.31 billion slightly missed analysts' expectations of $4.32 billion, it still marked a 1.68% year-over-year increase.

Despite facing a muted demand environment, Grainger demonstrated resilience in its business model. The company's High-Touch Solutions - N.A. segment saw a slight 0.2% decline in sales, but this was offset by robust 10.3% growth in its Endless Assortment segment. Notably, Grainger's gross profit margin improved to 39.7%, a 30 basis point increase from the previous year, reflecting favorable product mix and supplier funding benefits.

Investors were particularly encouraged by Grainger's decision to reaffirm its full-year 2025 guidance. The company maintains its outlook for earnings per share between $39.00 and $41.50 on revenue of $17.6 billion to $18.1 billion. This vote of confidence in its future performance, combined with the earnings beat, appears to be driving the stock's significant pre-market rally.