A downtrend has been apparent in Graco Inc. (GGG - Free Report) lately with too much selling pressure. The stock has declined 10.2% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Why a Trend Reversal is Due for GGGThe RSI reading of 26.77 for GGG is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.
The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for GGG has increased 0.3%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, GGG currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Graco NYSE: GGG reported record third-quarter fiscal 2026 sales of $586 million, up 8% from a year earlier and including 4% organic growth, as all three operating segments and reportable regions contributed to growth. Management said incoming organic orders rose 7% during the quarter and 4% year to date, while backlog excluding acquisitions increased $51 million, or 18%, from the beginning of the year through Oct. 16.
Adjusted operating earnings totaled $161 million, while adjusted earnings per share increased 5% to $0.81. Adjusted operating margin was 27% of sales, down nearly 180 basis points from the prior-year quarter, largely due to product and channel mix, including a higher mix of powder finishing systems.
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CEO Mark Sheahan said the company’s fourth-quarter revenue outlook is $610 million to $640 million, based on current order trends and backlog. He cautioned that demand conditions vary by market and that timing of larger projects can shift revenue between periods.
Order activity and segment performance Graco said third-quarter organic revenue, excluding the recently acquired Valco Melton business, finished slightly below the company’s prior guidance range of $580 million to $600 million. CFO Sanjiv Gupta attributed the shortfall primarily to the Industrial segment, where larger capital projects faced longer decision cycles and some projects were delayed or pushed out.
Gupta said the company was not seeing broad-based demand deterioration, citing order activity. He added that Graco’s fourth-quarter outlook does not assume an acceleration in demand.
Contractor: Sales rose 5%, including acquisitions, and organic sales increased 2%. Growth occurred across regions and was led by professional paint sales in the Americas. Sheahan said adoption of products including QuickShot II and ProReach supported sell-through in key channels. Segment bookings increased 7% in the quarter and 2% year to date. Industrial: Sales increased 11%, supported by the core business and acquisitions. Growth was led by project activity in powder finishing systems, while maintenance and repair spending remained strong. Graco also cited greater adoption of QUANTM electric pumps and continued automatic lubrication growth. Year-to-date bookings rose 1%. Expansion Markets: Sales rose 8%. Semiconductor posted its strongest quarterly revenue in several years as customers invested in advanced manufacturing capacity and more complex production processes. Environmental sales also grew by double digits. Segment bookings increased 62% in the quarter and 44% year to date. Sheahan said Contractor’s underlying activity remained positive despite the residential housing backdrop, with commercial activity, infrastructure-related work, protective coatings and foam applications contributing to momentum. The home-center channel was down slightly during the quarter, he said, but management did not identify a fundamental change in that channel.
Within Industrial, management said broader conditions remained somewhat sluggish, particularly for larger capital projects. However, Sheahan said bookings improved during the latter part of the third quarter and that the improvement had continued into the fourth quarter. Gupta said Industrial growth in the third quarter was spread across geographies, though it was more subdued in the U.S.
Valco Melton integration and margins During the quarter, Graco completed its acquisition of Valco Melton, adding precision adhesive dispensing and quality-assurance capabilities. Management said its integration priorities include cross-selling through complementary customer relationships and channels, leveraging procurement and manufacturing capabilities, and maintaining customer service and business momentum.
Graco is targeting expansion of Valco Melton’s EBITDA margin from the high teens to the mid-20% range within three years of the acquisition’s closing. Sheahan said Valco Melton sells directly to customers and has an established direct sales organization, but he did not see structural factors that would prevent its long-term margin profile from approaching that of Graco’s general industrial businesses.
Contractor operating earnings rose 5% to $71 million, with margins stable year over year. Excluding Valco Melton and related costs, Industrial operating earnings were flat at $74 million, while the segment’s margin declined by nearly one percentage point due primarily to product and channel mix. Expansion Markets operating earnings increased 5% to $11 million, aided by semiconductor strength but facing a comparison that included a prior-year upfront license fee related to an electric motor application.
Management said realized pricing offset higher net input costs during the quarter. Price-cost was flat, and Sheahan said he expected that relationship to remain broadly similar in the fourth quarter.
ABB technology agreement and capital allocation Sheahan also highlighted a newly announced technology agreement between Graco’s ETM business and ABB. Under the agreement, ABB will license ETM’s patented transverse flux motor technology for data-center cooling towers, heat-rejection systems and related thermal-management applications.
The companies are targeting their first data-center installations by the end of 2029. Sheahan said ABB is expected to begin launching Graco motor technology into other applications, including conveyor systems and factories, next year under a separate licensing agreement announced previously.
Year-to-date operating cash flow was $463 million, equal to 116% of adjusted net earnings. Graco repurchased $467 million of shares, paid $145 million in dividends, invested $436 million in acquisitions net of cash acquired, and spent $48 million on capital expenditures. Gupta said the company maintained a slightly positive net cash position despite those investments.
Management said it intends to maintain a balanced capital-allocation approach, combining share repurchases with acquisitions. Sheahan said the acquisition pipeline includes more businesses in faster-growing end markets than it did several years ago, citing semiconductor and water and wastewater management as areas of focus.
About Graco (NYSE:GGG)Graco Inc is a global manufacturer of equipment used to move, measure, control, dispense and apply fluids and other materials. Its products are used in industrial, commercial and residential applications involving paints, coatings, sealants, adhesives, lubricants, chemicals and other fluids.
The company's product portfolio includes pumps, valves, meters, regulators, fluid-management systems, lubrication equipment, spray-applied coating and finishing systems, sealant and adhesive equipment, and contractor-oriented painting and texture application tools.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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On its third-quarter 2026 earnings call, held on Oct. 22, 2026, Graco (GGG -15.32%) announced record sales of $586 million alongside strategic licensing deals in data center cooling. The manufacturing equipment provider relies on a technical moat and disciplined cross-selling to defend 27% operating margins during industrial slowdowns. Three things management said stand out.
1. Data Center Cooling Licensing Unlocks Infrastructure ExpansionGraco partnered with power and automation firm ABB to supply direct-drive electric motor technology for data center cooling systems. The licensing deal allows the business to enter the high-density artificial intelligence infrastructure market without heavy capital outlays.
By combining ABB's global scale, customer relationships and manufacturing capabilities with ETM's differentiated technology, we have a unique opportunity to create value in a large and growing market while further demonstrating the long-term potential of the ETM platform.
-- Mark Sheahan, President and Chief Executive Officer2. Valco Melton Acquisition Offers Operational Margin UpsideThe company acquired adhesive equipment maker Valco Melton to grow precision dispensing capabilities. Leadership expects to increase the new unit's EBITDA (earnings before interest, taxes, depreciation, and amortization) through cross-selling and supply chain integration.
We're targeting expansion of Valco Melton's EBITDA margin from the high teens to the mid-20% range within 3 years of closing.
-- Mark Sheahan, President and Chief Executive Officer3. Growing Order Backlog Buffers Industrial Capital DelaysIndustrial clients are delaying large equipment purchases, but overall order volume continues to outpace shipments. That accumulation of unfulfilled orders gives management financial visibility despite uneven macroeconomic conditions.
Backlog as of October 16, excluding acquisitions, increased $51 million or 18% from the beginning of the year.
-- Mark Sheahan, President and Chief Executive OfficerLooking AheadDemand in contractor paint equipment and semiconductor markets remains steady. That stability provides management breathing room as industrial decision cycles stretch out.
I think we're cautiously optimistic that as we close out the year that the overall demand trends remain intact, and we'll see some growth in Contractor in Q4.
-- Mark Sheahan, President and Chief Executive OfficerA positive net cash position allows continuous reinvestment in high-growth niches alongside steady share repurchases and dividends.
We remain well positioned to invest in strategic growth opportunities while maintaining a disciplined approach to capital allocation and long-term shareholder value creation.
-- Sanjiv Gupta, Chief Financial Officer and TreasurerThe Motley Fool has positions in and recommends Abb. The Motley Fool has a disclosure policy.
Graco Inc. ( GGG ) Q3 2026 Earnings Call October 22, 2026 11:00 AM EDT Company Participants John Bower Mark Sheahan - President, CEO & Director Sanjiv Gupta - CFO & Treasurer Christopher Knutson - VP, Controller & Chief Accounting Officer Conference Call Participants Michael Halloran - Robert W. Baird & Co. Incorporated, Research Division Bryan Blair - Oppenheimer & Co. Inc., Research Division Mitchell Moore - KeyBanc Capital Markets Inc., Research Division Matt Summerville - D.A.
Graco Inc. (GGG - Free Report) reported $586.39 million in revenue for the quarter ended September 2026, representing a year-over-year increase of 7.9%. EPS of $0.81 for the same period compares to $0.73 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $589.82 million, representing a surprise of -0.58%. The company delivered an EPS surprise of -1.22%, with the consensus EPS estimate being $0.82.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Graco performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net sales- Expansion Markets: $45.73 million versus the four-analyst average estimate of $45.5 million. The reported number represents a year-over-year change of +8%.Net Sales- Contractor: $276.03 million versus $281.25 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +5.2% change.Net Sales- Industrial: $264.62 million versus $263.02 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +10.9% change.Operating earnings /(loss)- Industrial: $74.45 million versus the four-analyst average estimate of $87.23 million.Operating earnings/(loss)- Expansion Markets: $10.94 million versus $11.13 million estimated by four analysts on average.Operating earnings /(loss)- Unallocated corporate (expense): $-8.51 million versus the four-analyst average estimate of $-9.55 million.Operating earnings /(loss)- Contractor: $71.24 million versus the four-analyst average estimate of $74.13 million.View all Key Company Metrics for Graco here>>>
Shares of Graco have returned +4.4% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
MINNEAPOLIS--(BUSINESS WIRE)--Electric Torque Machines (ETM), a wholly owned subsidiary of Graco Inc. (NYSE: GGG) and owner of patented Transverse Flux Motor (TFM) technology, today announced that ABB has signed a license agreement covering the use of ETM's technology in data center cooling towers and heat rejection systems. The agreement builds on a successful collaboration between ABB and ETM in industrial applications to capitalize on one of the fastest-growing areas of global infrastructure.
MINNEAPOLIS--(BUSINESS WIRE)--Graco Inc. (NYSE: GGG) today announced results for the third quarter ended September 25, 2026 and also announces technology partnership with ABB for data centers. Summary $ in millions except per share amounts Three Months Ended Nine Months Ended Sep 25, 2026 Sep 26, 2025 % Change Sep 25, 2026 Sep 26, 2025 % Change Net Sales $ 586.4 $ 543.4 8 % $ 1,717.1 $ 1,643.4 4 % Operating Earnings 148.1 164.7 (10 )% 461.0 466.2 (1.
Graco Inc. (GGG - Free Report) came out with quarterly earnings of $0.81 per share, missing the Zacks Consensus Estimate of $0.82 per share. This compares to earnings of $0.73 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -1.22%. A quarter ago, it was expected that this company would post earnings of $0.81 per share when it actually produced earnings of $0.91, delivering a surprise of +12.35%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Graco, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $586.39 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.58%. This compares to year-ago revenues of $543.36 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Graco shares have lost about 1.1% since the beginning of the year versus the S&P 500's gain of 12.7%.
What's Next for Graco?While Graco has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Graco was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.86 on $639.13 million in revenues for the coming quarter and $3.30 on $2.35 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Regal Rexnord (RRX - Free Report) , another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on November 3.
This maker of controls for electric motors is expected to post quarterly earnings of $2.69 per share in its upcoming report, which represents a year-over-year change of +7.2%. The consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level.
Regal Rexnord's revenues are expected to be $1.56 billion, up 4.2% from the year-ago quarter.
In its upcoming report, Graco Inc. (GGG - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.82 per share, reflecting an increase of 12.3% compared to the same period last year. Revenues are forecasted to be $589.82 million, representing a year-over-year increase of 8.6%.
The current level reflects an upward revision of 0.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
With that in mind, let's delve into the average projections of some Graco metrics that are commonly tracked and projected by analysts on Wall Street.
The average prediction of analysts places 'Net sales- Expansion Markets' at $45.50 million. The estimate indicates a year-over-year change of +7.5%.
According to the collective judgment of analysts, 'Net Sales- Contractor' should come in at $281.25 million. The estimate suggests a change of +7.2% year over year.
The combined assessment of analysts suggests that 'Net Sales- Industrial' will likely reach $263.02 million. The estimate indicates a year-over-year change of +10.2%.
Analysts expect 'Operating earnings /(loss)- Industrial' to come in at $87.23 million. Compared to the present estimate, the company reported $80.73 million in the same quarter last year.
The consensus estimate for 'Operating earnings/(loss)- Expansion Markets' stands at $11.13 million. Compared to the present estimate, the company reported $10.39 million in the same quarter last year.
Analysts predict that the 'Operating earnings /(loss)- Contractor' will reach $74.13 million. Compared to the present estimate, the company reported $67.87 million in the same quarter last year.
View all Key Company Metrics for Graco here>>>
Shares of Graco have demonstrated returns of +5.4% over the past month compared to the Zacks S&P 500 composite's +0.7% change. With a Zacks Rank #2 (Buy), GGG is expected to beat the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Assenagon Asset Management S.A. raised its stake in shares of Graco Inc. (NYSE:GGG – Free Report) by 163.1% in the third quarter, according to its most recent 13F filing with the SEC. The fund owned 971,554 shares of the industrial products company’s stock after buying an additional 602,289 shares during the period. Assenagon Asset Management S.A. owned about 0.60% of Graco worth $74,654,000 at the end of the most recent quarter.
Several other institutional investors and hedge funds have also modified their holdings of the stock. BlackRock Inc. purchased a new position in shares of Graco in the 2nd quarter valued at about $1,396,470,000. Caisse de depot et placement du Quebec purchased a new stake in Graco during the 2nd quarter worth approximately $141,667,000. Hsbc Holdings PLC acquired a new position in shares of Graco during the second quarter valued at approximately $100,157,000. Bank of New York Mellon Corp acquired a new position in shares of Graco during the second quarter valued at approximately $97,625,000. Finally, Port Capital LLC acquired a new position in shares of Graco during the second quarter valued at approximately $66,974,000. Institutional investors and hedge funds own 93.88% of the company’s stock.
Analysts Set New Price Targets Several research firms have recently weighed in on GGG. DA Davidson restated a “neutral” rating and issued a $85.00 target price on shares of Graco in a research report on Monday, July 27th. Royal Bank Of Canada dropped their price target on Graco from $96.00 to $95.00 and set an “outperform” rating for the company in a research report on Wednesday. Robert W. Baird set a $94.00 price objective on Graco in a research note on Friday, July 24th. Weiss Ratings upgraded Graco from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, August 4th. Finally, Wolfe Research lowered Graco from an “outperform” rating to a “peer perform” rating in a report on Thursday, July 9th. Two analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Graco has a consensus rating of “Hold” and a consensus target price of $94.75.
Get Our Latest Report on Graco Graco Stock Up 0.3% NYSE GGG opened at $82.06 on Friday. Graco Inc. has a 52 week low of $72.51 and a 52 week high of $95.69. The firm has a 50 day moving average of $78.89 and a two-hundred day moving average of $78.63. The stock has a market capitalization of $13.29 billion, a PE ratio of 25.80, a price-to-earnings-growth ratio of 2.54 and a beta of 0.89.
Graco (NYSE:GGG – Get Free Report) last issued its earnings results on Wednesday, July 22nd. The industrial products company reported $0.91 EPS for the quarter, topping analysts’ consensus estimates of $0.81 by $0.10. Graco had a net margin of 23.53% and a return on equity of 19.54%. The firm had revenue of $590.55 million during the quarter, compared to the consensus estimate of $608.06 million. During the same quarter in the previous year, the firm posted $0.75 earnings per share. The company’s revenue was up 3.3% compared to the same quarter last year. On average, equities research analysts expect that Graco Inc. will post 3.22 earnings per share for the current fiscal year.
Graco Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 4th. Investors of record on Monday, October 19th will be issued a $0.2950 dividend. This represents a $1.18 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend is Monday, October 19th. Graco’s dividend payout ratio is 37.11%.
Graco Company Profile (Free Report)
Graco Inc is a Minneapolis-based manufacturer of equipment used to manage, measure, control and apply fluids and coatings. Its products are used in industrial, commercial and residential applications, including fluid handling, lubrication, dispensing, sealing, bonding, painting and corrosion protection.
The company’s product portfolio includes pumps, valves, meters, regulators, controls, proportioning systems and spray equipment. Graco also supplies equipment for paint and texture application, protective coatings, sealants and adhesives, vehicle servicing, and the automated lubrication of machinery.
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Graco Inc. (GGG - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on October 21, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.82 per share in its upcoming report, which represents a year-over-year change of +12.3%.
Revenues are expected to be $589.82 million, up 8.6% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.98% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Graco?For Graco, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.68%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that Graco will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Graco would post earnings of $0.81 per share when it actually produced earnings of $0.91, delivering a surprise of +12.35%.
Over the last four quarters, the company has beaten consensus EPS estimates just once.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Graco doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Nauticus Robotics (NASDAQ:KITT – Get Free Report) and Graco (NYSE:GGG – Get Free Report) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.
Risk & Volatility Nauticus Robotics has a beta of -0.08, meaning that its share price is 108% less volatile than the S&P 500. Comparatively, Graco has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.
Insider and Institutional Ownership 20.5% of Nauticus Robotics shares are held by institutional investors. Comparatively, 93.9% of Graco shares are held by institutional investors. 26.3% of Nauticus Robotics shares are held by company insiders. Comparatively, 2.2% of Graco shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations This is a breakdown of recent ratings and recommmendations for Nauticus Robotics and Graco, as provided by MarketBeat. Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Nauticus Robotics 1 0 0 0 1.00 Graco 0 5 2 0 2.29 Graco has a consensus target price of $95.00, suggesting a potential upside of 21.61%. Given Graco’s stronger consensus rating and higher probable upside, analysts plainly believe Graco is more favorable than Nauticus Robotics.
Profitability This table compares Nauticus Robotics and Graco’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Nauticus Robotics -1,758.70% -1,067.00% -81.40% Graco 23.53% 19.54% 15.86% Valuation and Earnings This table compares Nauticus Robotics and Graco”s top-line revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Nauticus Robotics $5.28 million 0.31 -$40.83 million ($329.27) -0.00 Graco $2.24 billion 5.66 $521.84 million $3.18 24.57 Graco has higher revenue and earnings than Nauticus Robotics. Nauticus Robotics is trading at a lower price-to-earnings ratio than Graco, indicating that it is currently the more affordable of the two stocks.
Summary Graco beats Nauticus Robotics on 13 of the 14 factors compared between the two stocks.
(Get Free Report)
Nauticus Robotics, Inc. develops ocean robots, cloud software, and services to the ocean industry. The company offers Aquanaut, an autonomous underwater vehicle with sensor suite, which provides capability to observe and inspect subsea assets or other subsea features; Olympic Arm, an all-electric manipulator designed for a variety of intervention tasks on work class remotely operated vehicles; and ToolKITT, a software platform, which consists of interrelated products for ocean sensing, manipulation, autonomous behaviors, survey, search and recovery, and manual intervention. The company was founded in 2014 and is headquartered in Webster, Texas.
About Graco (Get Free Report)
Graco Inc. designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide. The Contractor segment offers sprayers to apply paint to walls and other structures; two-component proportioning systems that are used to spray polyurethane foam and polyurea coatings; and viscous coatings to roofs, as well as markings on roads, parking lots, athletic fields, and floors. The Industrial segment provides liquid finishing equipment, paint circulating and supply pumps, paint circulating advanced control systems, plural component coating proportioners, and accessories and spare parts; equipment that pumps, meters, mixes and dispenses sealant, adhesive, and composite materials; and gel-coat equipment, chop and wet-out systems, resin transfer molding systems and applicators, and precision dispensing solutions. It also offers powder finishing products to coat powder finishing on metals under the Gema and SAT brands. The Process segment provides pumps to move and dispense chemicals, water, wastewater, petroleum, food, lubricants, and other fluids; pressure valves used in the oil and natural gas industry, other industrial processes, and research facilities; and chemical injection pumping solutions for injection of chemicals into producing oil wells and pipelines. It also supplies pumps, hose reels, meters, valves, and accessories for fast oil change facilities, service garages, fleet service centers, automobile dealerships, auto parts stores, truck builders, and heavy equipment service centers; and systems, components, and accessories for the automatic lubrication of bearings, gears, and generators in industrial and commercial equipment, compressors, turbines, and on- and off-road vehicles. It sells its products through distributors, original equipment manufacturers, and home center channels, as well as to end-users. The company was incorporated in 1926 and is headquartered in Minneapolis, Minnesota.
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Graco Inc. (NYSE: GGG - Get Free Report) has received a consensus recommendation of "Hold" from the seven brokerages that are covering the stock, MarketBeat Ratings reports. Five investment analysts have rated the stock with a hold recommendation and two have issued a buy recommendation on the company. The average 12-month price objective among brokers that
Keyence (OTCMKTS:KYCCF – Get Free Report) and Graco (NYSE:GGG – Get Free Report) are both large-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.
Risk & Volatility Keyence has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Graco has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.
Analyst Recommendations This is a breakdown of recent ratings and recommmendations for Keyence and Graco, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Keyence 0 1 2 1 3.00 Graco 0 5 2 0 2.29 Graco has a consensus price target of $95.00, indicating a potential upside of 21.58%. Given Graco’s higher possible upside, analysts clearly believe Graco is more favorable than Keyence. Institutional & Insider Ownership 93.9% of Graco shares are held by institutional investors. 2.2% of Graco shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings This table compares Keyence and Graco”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Keyence $7.31 billion 17.20 $2.78 billion $3.60 143.93 Graco $2.24 billion 5.66 $521.84 million $3.18 24.57 Keyence has higher revenue and earnings than Graco. Graco is trading at a lower price-to-earnings ratio than Keyence, indicating that it is currently the more affordable of the two stocks.
Profitability This table compares Keyence and Graco’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Keyence N/A N/A N/A Graco 23.53% 19.54% 15.86% Summary Keyence beats Graco on 8 of the 14 factors compared between the two stocks.
About Keyence (Get Free Report)
Keyence Corporation, together with its subsidiaries, engages in the development, manufacture, and sale of factory automation solutions in Japan, China, the United States, and internationally. The company offers photoelectric, fiber optic, laser, positioning, vision, specific solution, and inductive proximity sensors, as well as network communication units. It also provides measurement sensors, such as laser displacement and profiler, optical/laser micrometer, inductive displacement sensor, 3D interference measurement, spectral interference displacement, and contact displacement/LVDT sensors; and measurement systems, including optical comparators, 3D scanners, multisensor measurement, and CMM/laser trackers. In addition, the company provides safety products comprising safety laser scanners, light curtains, interlock switches, and controllers; and pressure, flow, level, and temperature sensors for monitoring equipment processes. Further, it offers static eliminators/ionizers and electrostatic sensors, which protect workers, machinery, and products from the damaging effects of electrostatic charge; vision systems and sensors; and programmable logic controllers, servo motor and system, and other controls that are used for machine control applications. Additionally, the company provides barcode and handheld scanners; laser marking systems/laser markers, UV laser coder, and industrial continuous inkjet printers; digital, 3D surface profilers, elemental analyzers, optical profilometers, and fluorescence microscopes; data loggers; and mobile/ handheld computers. It serves customers in automotive, semiconductors/LCDs, electronic devices, food/pharmaceutical, medical technology, logistics, metals, plastics, and films/sheets industries. Keyence Corporation was founded in 1972 and is headquartered in Osaka, Japan.
About Graco (Get Free Report)
Graco Inc. designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide. The Contractor segment offers sprayers to apply paint to walls and other structures; two-component proportioning systems that are used to spray polyurethane foam and polyurea coatings; and viscous coatings to roofs, as well as markings on roads, parking lots, athletic fields, and floors. The Industrial segment provides liquid finishing equipment, paint circulating and supply pumps, paint circulating advanced control systems, plural component coating proportioners, and accessories and spare parts; equipment that pumps, meters, mixes and dispenses sealant, adhesive, and composite materials; and gel-coat equipment, chop and wet-out systems, resin transfer molding systems and applicators, and precision dispensing solutions. It also offers powder finishing products to coat powder finishing on metals under the Gema and SAT brands. The Process segment provides pumps to move and dispense chemicals, water, wastewater, petroleum, food, lubricants, and other fluids; pressure valves used in the oil and natural gas industry, other industrial processes, and research facilities; and chemical injection pumping solutions for injection of chemicals into producing oil wells and pipelines. It also supplies pumps, hose reels, meters, valves, and accessories for fast oil change facilities, service garages, fleet service centers, automobile dealerships, auto parts stores, truck builders, and heavy equipment service centers; and systems, components, and accessories for the automatic lubrication of bearings, gears, and generators in industrial and commercial equipment, compressors, turbines, and on- and off-road vehicles. It sells its products through distributors, original equipment manufacturers, and home center channels, as well as to end-users. The company was incorporated in 1926 and is headquartered in Minneapolis, Minnesota.
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MINNEAPOLIS--(BUSINESS WIRE)--Graco Inc. (NYSE: GGG) announced today that it will release its Third Quarter 2026 earnings after the New York Stock Exchange closes on Wednesday, October 21, 2026. A full-text copy of the earnings announcement will be available on the company's website at investors.graco.com. Graco management will hold a conference call, including slides via webcast, with analysts and institutional investors to discuss the results at 11 a.m. EDT / 10 a.m. CDT on Thursday, October 2.
Mark Sheahan, Graco CEO, joins 'Power Lunch' to discuss on data center buildout, its AI infrastructure play, celebrating 100 years as a company, and more.
California State Teachers Retirement System boosted its holdings in shares of Graco Inc. (NYSE:GGG – Free Report) by 6,804.1% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 20,492,805 shares of the industrial products company’s stock after buying an additional 20,195,984 shares during the period. California State Teachers Retirement System owned approximately 12.65% of Graco worth $1,549,461,000 as of its most recent filing with the Securities and Exchange Commission.
Several other hedge funds have also recently bought and sold shares of the business. Cassaday & Co Wealth Management LLC acquired a new stake in shares of Graco during the 1st quarter valued at about $26,000. Whipplewood Advisors LLC grew its stake in shares of Graco by 2,650.0% in the 1st quarter. Whipplewood Advisors LLC now owns 330 shares of the industrial products company’s stock valued at $28,000 after buying an additional 318 shares in the last quarter. Essential Partners LLC increased its holdings in Graco by 78.6% in the first quarter. Essential Partners LLC now owns 359 shares of the industrial products company’s stock worth $30,000 after buying an additional 158 shares during the last quarter. Elevation Wealth Partners LLC raised its position in Graco by 2,540.0% during the second quarter. Elevation Wealth Partners LLC now owns 528 shares of the industrial products company’s stock valued at $40,000 after acquiring an additional 508 shares in the last quarter. Finally, Geneos Wealth Management Inc. lifted its stake in Graco by 982.6% in the first quarter. Geneos Wealth Management Inc. now owns 498 shares of the industrial products company’s stock valued at $42,000 after acquiring an additional 452 shares during the last quarter. 93.88% of the stock is owned by hedge funds and other institutional investors.
Graco Price Performance Graco stock opened at $76.69 on Friday. The company has a market capitalization of $12.42 billion, a PE ratio of 24.12, a price-to-earnings-growth ratio of 2.38 and a beta of 0.92. Graco Inc. has a one year low of $72.51 and a one year high of $95.69. The business has a 50 day simple moving average of $78.53 and a 200 day simple moving average of $80.46.
Graco (NYSE:GGG – Get Free Report) last posted its earnings results on Wednesday, July 22nd. The industrial products company reported $0.91 earnings per share for the quarter, topping the consensus estimate of $0.81 by $0.10. The business had revenue of $590.55 million for the quarter, compared to analyst estimates of $608.06 million. Graco had a net margin of 23.53% and a return on equity of 19.54%. The firm’s quarterly revenue was up 3.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.75 EPS. Equities analysts anticipate that Graco Inc. will post 3.19 earnings per share for the current fiscal year. Analyst Upgrades and Downgrades Several analysts have commented on the stock. Robert W. Baird set a $94.00 target price on shares of Graco in a research report on Friday, July 24th. Weiss Ratings raised Graco from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, August 4th. DA Davidson reiterated a “neutral” rating and set a $85.00 price target on shares of Graco in a research note on Monday, July 27th. Wolfe Research lowered Graco from an “outperform” rating to a “peer perform” rating in a report on Thursday, July 9th. Finally, Royal Bank Of Canada raised their price objective on Graco from $92.00 to $96.00 and gave the company an “outperform” rating in a research note on Friday, July 24th. Two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $95.00.
Check Out Our Latest Research Report on GGG
About Graco (Free Report)
Graco Inc is a manufacturer of equipment used to manage, measure, control and apply fluids and coatings. Its products include pumps, valves, meters, regulators, dispensing systems, spray equipment and automated lubrication systems used in manufacturing, construction, vehicle service and other industrial applications.
The company serves a range of end markets through businesses focused on contractor equipment, industrial systems and process equipment. Its offerings support applications such as painting and protective coatings, sealant and adhesive dispensing, lubrication, fluid transfer, water and wastewater treatment, and the handling of chemicals and other materials.
Founded in Minneapolis in 1926, Graco traces its origins to equipment developed for dispensing automotive grease.
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MINNEAPOLIS--(BUSINESS WIRE)--The Board of Directors of Graco Inc. (NYSE:GGG) has declared a regular quarterly dividend of 29.5 cents ($0.295) per common share, payable on November 4, 2026, to shareholders of record at the close of business on October 19, 2026. The Company has approximately 160.4 million shares outstanding.ABOUT GRACOGraco Inc. supplies technology and expertise for the management of fluids and coatings in both industrial and commercial applications. It designs, manufactures and.
The price trend for Graco Inc. (GGG - Free Report) has been bearish lately and the stock has lost 6.1% over the past two weeks. However, the formation of a hammer chart pattern in its last trading session indicates that the stock could witness a trend reversal soon, as bulls might have gained significant control over the price to help it find support.
The formation of a hammer pattern is considered a technical indication of nearing a bottom with likely subsiding of selling pressure. But this is not the only factor that makes a bullish case for the stock. On the fundamental side, strong agreement among Wall Street analysts in raising earnings estimates for this company enhances its prospects of a trend reversal.
What is a Hammer Chart and How to Trade It?This is one of the popular price patterns in candlestick charting. A minor difference between the opening and closing prices forms a small candle body, and a higher difference between the low of the day and the open or close forms a long lower wick (or vertical line). The length of the lower wick being at least twice the length of the real body, the candle resembles a 'hammer.'
In simple terms, during a downtrend, with bears having absolute control, a stock usually opens lower compared to the previous day's close, and again closes lower. On the day the hammer pattern is formed, maintaining the downtrend, the stock makes a new low. However, after eventually finding support at the low of the day, some amount of buying interest emerges, pushing the stock up to close the session near or slightly above its opening price.
When it occurs at the bottom of a downtrend, this pattern signals that the bears might have lost control over the price. And, the success of bulls in stopping the price from falling further indicates a potential trend reversal.
Hammer candles can occur on any timeframe -- such as one-minute, daily, weekly -- and are utilized by both short-term as well as long-term investors.
Like every technical indicator, the hammer chart pattern has its limitations. Particularly, as the strength of a hammer depends on its placement on the chart, it should always be used in conjunction with other bullish indicators.
Here's What Makes the Trend Reversal More Likely for GGGAn upward trend in earnings estimate revisions that GGG has been witnessing lately can certainly be considered a bullish indicator on the fundamental side. That's because empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
Over the last 30 days, the consensus EPS estimate for the current year has increased 0.7%. What it means is that the sell-side analysts covering GGG are majorly in agreement that the company will report better earnings than they predicted earlier.
If this is not enough, you should note that GGG currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. And stocks carrying a Zacks Rank #1 or 2 usually outperform the market. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Moreover, the Zacks Rank has proven to be an excellent timing indicator, helping investors identify precisely when a company's prospects are beginning to improve. So, for the shares of Graco, a Zacks Rank of 2 is a more conclusive fundamental indication of a potential turnaround.
Key Takeaways Graco completed the $447 million cash acquisition of Valco Melton, adding it to its Industrial segment.Valco Melton generated $145 million in 2025 revenues, with more than 50% from aftermarket products.Graco expects the deal to expand its fluid handling portfolio and help manufacturers improve productivity. Graco Inc. (GGG - Free Report) recently completed the cash purchase of Valco Melton for $447 million. Considering the roughly $40 million in anticipated tax benefits, the net transaction is valued at about 14 times Valco Melton’s adjusted EBITDA for 2025 and 10 times its projected 2026 EBITDA, including synergies.
Headquartered in Cincinnati, OH, Valco Melton specializes in manufacturing industrial systems designed for accurate adhesive application and production quality verification. The company has a strong customer base across several industries, including packaging, folding carton, envelope, nonwovens, print finishing, textiles, automotive and others. Valco Melton’s revenues totaled $145 million in 2025, with more than 50% generated from aftermarket products.
The latest buyout is in sync with Graco’s policy of acquiring businesses to expand its market share and customer base. The inclusion of Valco Melton’s precision adhesive dispensing and vision-based quality assurance technologies will enhance GGG’s capabilities in precision sealant and adhesive dispensing, further expanding its fluid handling portfolio.
This acquisition will enable GGG to support manufacturers in achieving reliable performance, better product quality and higher productivity. The acquired company will be added to Graco’s Industrial segment.
Other Notable AcquisitionsIn November 2025, Graco acquired Red Devil Equipment Company (Radia). The acquisition boosted GGG’s presence in the color solutions space by incorporating Radia’s advanced mixing, shaking and automated material-handling equipment portfolio.
Also, the company’s buyout of Color Service S.r.l. in July 2025 strengthened its powder handling portfolio and expanded its presence across textiles, rubber, cosmetics, plastics and food industries.
Graco’s Zacks Rank and Price PerformanceGGG currently carries a Zacks Rank #3 (Hold). Graco is poised to benefit from product innovation, targeted acquisitions, disciplined capital returns and ample financial flexibility. High costs pose a threat to the company’s bottom line.
Image Source: Zacks Investment Research
In the past three months, the company’s shares have gained 4.7% compared with the industry’s growth of 2.6%.
The Zacks Consensus Estimate for its earnings is pegged at $3.30 for 2026, suggesting an increase of 6.1% from the 60-day-ago figure.
Key PicksSome better-ranked stocks from the same space are presented below.
Flowserve Corporation (FLS - Free Report) carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Flowserve’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 11.2%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2026 bottom line has increased 1.2%.
Helios Technologies (HLIO - Free Report) currently carries a Zacks Rank of 2. Helios Technologies’ earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 13.1%. In the past 60 days, the Zacks Consensus Estimate for HLIO’s 2026 earnings has increased 10.4%.
RBC Bearings Incorporated (RBC - Free Report) presently carries a Zacks Rank of 2. RBC Bearings’ earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 8.7%. The Zacks Consensus Estimate for RBC’s fiscal 2027 (ending March 2027) earnings has increased 4.9% over the past 60 days.
MINNEAPOLIS--(BUSINESS WIRE)--Graco Inc. (NYSE: GGG), a global leader in fluid and powder handling technologies, today announced it has completed its acquisition of Valco Melton, a global provider of adhesive application and quality assurance systems, for $447 million in cash. When adjusted for the present value of expected tax benefits of approximately $40 million, the net transaction value represents approximately 14x 2025 adjusted EBITDA and approximately 10x 2026 estimated full-year, synerg.
Graco Inc. (GGG - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
Therefore, the Zacks rating upgrade for Graco basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For Graco, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for GracoFor the fiscal year ending December 2026, this company is expected to earn $3.26 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Graco. Over the past three months, the Zacks Consensus Estimate for the company has increased 4.9%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Graco to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Dimensional Fund Advisors LP lessened its stake in Graco Inc. (NYSE:GGG – Free Report) by 1.8% in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 1,281,693 shares of the industrial products company’s stock after selling 23,639 shares during the quarter. Dimensional Fund Advisors LP owned about 0.77% of Graco worth $108,483,000 at the end of the most recent reporting period.
A number of other institutional investors have also recently added to or reduced their stakes in GGG. Whipplewood Advisors LLC grew its position in Graco by 2,650.0% in the first quarter. Whipplewood Advisors LLC now owns 330 shares of the industrial products company’s stock worth $28,000 after acquiring an additional 318 shares during the period. Field & Main Bank purchased a new stake in Graco in the fourth quarter valued at $41,000. Geneos Wealth Management Inc. lifted its stake in shares of Graco by 982.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 498 shares of the industrial products company’s stock valued at $42,000 after purchasing an additional 452 shares during the last quarter. Root Financial Partners LLC lifted its stake in shares of Graco by 43.2% in the 1st quarter. Root Financial Partners LLC now owns 504 shares of the industrial products company’s stock valued at $43,000 after purchasing an additional 152 shares during the last quarter. Finally, Smartleaf Asset Management LLC grew its holdings in shares of Graco by 41.6% during the 4th quarter. Smartleaf Asset Management LLC now owns 746 shares of the industrial products company’s stock worth $62,000 after purchasing an additional 219 shares during the period. Hedge funds and other institutional investors own 93.88% of the company’s stock.
Analyst Upgrades and Downgrades A number of analysts recently issued reports on GGG shares. Wolfe Research downgraded Graco from an “outperform” rating to a “peer perform” rating in a research report on Thursday, July 9th. Robert W. Baird set a $94.00 target price on shares of Graco in a research note on Friday. Weiss Ratings cut shares of Graco from a “hold (c)” rating to a “hold (c-)” rating in a research report on Tuesday, July 21st. DA Davidson reissued a “neutral” rating and issued a $85.00 price target on shares of Graco in a research note on Monday. Finally, Royal Bank Of Canada upped their price objective on shares of Graco from $92.00 to $96.00 and gave the stock an “outperform” rating in a report on Friday, July 24th. Two research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, Graco presently has a consensus rating of “Hold” and an average target price of $95.00.
Check Out Our Latest Research Report on GGG
Graco Stock Performance Shares of GGG opened at $82.11 on Wednesday. Graco Inc. has a 1 year low of $72.51 and a 1 year high of $95.69. The stock has a market capitalization of $13.30 billion, a PE ratio of 25.82, a PEG ratio of 2.56 and a beta of 0.93. The stock has a 50-day simple moving average of $75.29 and a 200-day simple moving average of $82.61.
Graco (NYSE:GGG – Get Free Report) last released its earnings results on Wednesday, July 22nd. The industrial products company reported $0.91 earnings per share for the quarter, topping analysts’ consensus estimates of $0.81 by $0.10. The firm had revenue of $590.55 million for the quarter, compared to analyst estimates of $608.06 million. Graco had a net margin of 23.53% and a return on equity of 19.54%. The business’s quarterly revenue was up 3.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.75 earnings per share. Analysts predict that Graco Inc. will post 3.14 EPS for the current year.
Graco Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Wednesday, August 5th. Investors of record on Monday, July 20th will be paid a dividend of $0.295 per share. The ex-dividend date is Monday, July 20th. This represents a $1.18 annualized dividend and a yield of 1.4%. Graco’s payout ratio is presently 37.11%.
Graco Company Profile (Free Report)
Graco Inc is a leading manufacturer of fluid handling systems and components, headquartered in Minneapolis, Minnesota. Founded in 1926, the company has built a reputation for innovation in spray finishing, lubrication, and fluid management technologies. Graco’s solutions are designed to address the needs of paint and coatings applicators, general industry, and process fluids in a variety of end markets.
The company’s product portfolio includes airless and air-assisted spray equipment, pumps for oil and gas applications, industrial lubrication systems, and automated dispensing equipment.
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Graco NYSE: GGG reported record second-quarter sales and earnings for fiscal 2026, with management pointing to improving order trends, stronger backlog and growth across all three business segments as reasons for confidence in the second half of the year.
President and Chief Executive Officer Mark Sheahan said the company delivered second-quarter sales of $591 million, reflecting growth across Contractor, Industrial and Expansion Markets, along with margin expansion driven by “disciplined expense management and operational execution.” Organic orders rose 5% during the quarter, while the most recent six-week booking average was up 14% from a year earlier. Backlog as of July 17, excluding acquisitions, was up $57 million, or 28%, from the beginning of the year.
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“Together, these positive trends give us confidence in a stronger second half,” Sheahan said.
Adjusted Earnings Rise 17% Chief Financial Officer and Treasurer Sanjiv Gupta said reported second-quarter sales increased 3% from the prior year to $591 million. Acquisitions contributed 3 percentage points of growth and currency translation added 1 point, partially offset by a 1% decline in organic sales. Gupta attributed the organic decline primarily to the timing of finishing systems revenue in the Industrial segment.
Reported net earnings were $145 million, or $0.87 per diluted share, up 14% from the prior-year period. Adjusted earnings per share, excluding acquisition-related costs, amortization of acquired intangible assets and certain tax items, were $0.91, up 17% year over year.
Gross margin increased 130 basis points from the year-ago quarter. Gupta said the improvement reflected price realization, better manufacturing performance and the favorable impact of $9 million in tariff refunds, net of related surcharges. Operating expenses were “essentially flat” despite inflation and the addition of acquired businesses, helping operating earnings rise 11% and lifting operating margin to 30% of sales from 26% a year earlier.
Through the first six months of the year, Graco generated $298 million in operating cash flow. The company repurchased 4.2 million shares for approximately $331 million, paid $98 million in dividends and invested $29 million in capital expenditures, including strategic facility expansion projects.
Contractor Segment Sees Broad-Based Improvement Graco’s Contractor segment posted record sales and earnings in the quarter, with revenue up 4%. Sheahan said organic sales were higher across both paint and home center markets in the Americas for the first time in nearly two years.
The improvement was supported by greater stability in core markets, including North American residential repaint and remodel activity, better channel sell-through, stronger customer engagement and targeted commercial programs. Sheahan also highlighted continued demand in protective coatings and foam, which he described as more global and application-driven parts of the business. Those areas benefited from commercial construction, infrastructure and industrial projects, including investments tied to data centers, energy and manufacturing.
New product introductions also remained a focus. Sheahan cited the next generation of QuickShot, the ProReach extension system and autonomous and semi-autonomous striping solutions as products aimed at improving productivity, reducing labor needs, minimizing material waste and delivering more consistent results.
In response to an analyst question, Sheahan said he was “hopeful that we’ve kind of seen the worst” of the macro conditions facing the Contractor business in recent years, though he added that it was still early.
Industrial Demand Improves, With Powder Timing Still a Factor Industrial segment sales increased 3% in the quarter. Sheahan said the segment benefited from better activity in process manufacturing, machinery manufacturing, general industrial applications, semiconductor-related investment and continued adoption of electrified product platforms. He also cited healthy demand in day-to-day industrial applications, including maintenance, repair and operations channels.
The segment faced anticipated headwinds from lower organic powder finishing systems sales due to the timing of order acceptance, which management expects to occur in the second half. Asia was slower to start the year, with China affected by prior-year pull-forward activity ahead of tariff-related pricing actions and softer automotive demand.
Organic orders in Industrial improved through the quarter, with bookings up 3% year to date through July 17 and up 11% over the most recent six-week period from the prior year. Sheahan said easier comparisons in powder finishing and healthy backlog support expectations for stronger performance in the back half of the year.
Asked about general industrial conditions, Sheahan said growth in the legacy Graco Industrial business was broad-based and in line with the company’s low-single-digit organic growth guide for the full year. He said any first-half organic pressure was tied mainly to powder, where comparisons should ease.
Expansion Markets Led by Semiconductor Demand Expansion Markets sales grew 3%, with growth across all key businesses. Semiconductor demand remained a major driver, particularly in Asia-Pacific, supported by ongoing investment in semiconductor manufacturing capacity.
Bookings in Expansion Markets increased 58% in the quarter and were up 33% year to date. The most recent six-week average was up 36%, and backlogs remained strong.
Sheahan said semiconductor can be a “pretty lumpy end market,” but current signs suggest the strength is sustainable in the near term. He said momentum should last through the end of the year and likely into next year, supported by investment tied to artificial intelligence and semiconductor capacity.
Valco Melton Acquisition and Outlook In May, Graco announced the acquisition of Valco Melton, which Sheahan described as one of the company’s largest acquisitions in more than a decade. He said Valco Melton adds complementary technology, products and customer relationships in the packaging dispense market.
During the question-and-answer session, Sheahan said Valco Melton has gross margins of 50% or more and that more than half of its business is parts and accessories. Chris Knutson, vice president, chief accounting officer and controller, said Valco Melton’s referenced 9% revenue compound annual growth rate was organic. Knutson also said the company has about five manufacturing locations, with the rest of its 27-location footprint consisting of sales and service offices.
Graco maintained its full-year outlook and introduced third-quarter revenue guidance of $580 million to $600 million, excluding Valco Melton, which is expected to close during the third quarter. Sheahan said the decision to provide quarterly sales guidance reflected improved visibility and was intended to be an ongoing practice rather than a one-quarter change.
Gupta said currency is expected to provide approximately a 1% favorable impact on both full-year sales and earnings at current exchange rates. The company now expects unallocated corporate expenses of $39 million to $42 million, capital expenditures of $90 million to $100 million and an adjusted effective tax rate of 20% to 21% for the full year.
On pricing, Gupta said Graco’s price-cost position remains positive and that the company plans to stick with its historical cadence of introducing price increases at the beginning of the year. He said realized pricing this year has been roughly 1.5% to 2%.
Management also reiterated its balanced capital allocation strategy. Gupta said Graco will prioritize organic growth, strategic acquisitions that meet financial and strategic thresholds, and returns to shareholders through dividends and opportunistic share repurchases.
About Graco (NYSE:GGG)Graco Inc is a leading manufacturer of fluid handling systems and components, headquartered in Minneapolis, Minnesota. Founded in 1926, the company has built a reputation for innovation in spray finishing, lubrication, and fluid management technologies. Graco's solutions are designed to address the needs of paint and coatings applicators, general industry, and process fluids in a variety of end markets.
The company's product portfolio includes airless and air-assisted spray equipment, pumps for oil and gas applications, industrial lubrication systems, and automated dispensing equipment.
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Key Takeaways Graco beat Q2 earnings estimates as higher margins offset revenues that missed expectations.GGG saw acquisitions and currency gains offset an organic sales decline, while order backlog climbed 28%.GGG reaffirmed its 2026 outlook, expecting low-single-digit organic sales growth. Graco Inc. (GGG - Free Report) reported second-quarter 2026 adjusted earnings of 91 cents per share, up 17% from 78 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 81 cents by 12.4%.
The company’s net sales rose 3% year over year to $590.6 million but lagged the consensus estimate of $609 million by 3%. Organic order backlog (excluding acquisitions) rose 28% from the end of 2025.
On a regional basis, quarterly sales generated from the Americas increased 5.5% year over year to $371.4 million. Sales from the Asia Pacific increased 1.6% year over year to $91.4 million. In Europe, the Middle East and Africa, sales fell 1.6% year over year to $127.8 million.
Acquisitions Offset Organic SlideGraco’s acquired operations had a positive contribution of 3% to sales growth, while currency translation had a favorable impact of 1%. These tailwinds more than offset a 1% organic decline that management tied to softer timing of finishing system sales and certain project-related activities.
Management highlighted that incoming order rates increased as the quarter progressed, and the company exited the quarter with a solid order trend. This supported the increase in organic order backlog relative to 2025-end.
Graco Segment SalesContractor segment sales increased 4% year over year to $299.4 million, driven by strength in protective coating and spray foam product categories. While acquisitions and currency translation had a positive impact of 3% and 1%, respectively, on sales growth, organic sales were flat.
Industrial segment sales rose 3% to $249.2 million, supported by acquired businesses but were weighed down by powder finishing system completions and other projects. Acquisitions had a positive impact of 5% on sales growth. While currency translation had a favorable impact of 1% on sales, organic sales decreased 3%.
Expansion Markets sales increased 3% to $41.9 million, owing to an increase in semiconductor product application sales in the Americas. While organic sales improved 3% on a year-over-year basis, currency translation and acquisitions did not have any material impact on sales.
Margin Profile of GracoIn the second quarter, Graco’s cost of sales increased 0.5% year over year to $273.6 million. Gross profit increased 5.8% to $316.9 million, while the margin of 53.7% was up 130 basis points (bps) year over year. Margins were supported by the receipt of tariff refunds and disciplined operating expenses.
Adjusted operating income increased 11% year over year to $183.2 million. The operating margin increased 230 bps to 31% from the year-ago quarter. Interest expenses totaled $835 million compared with $655 million in the previous year’s quarter. The adjusted effective tax rate was 20.4% compared with the year-ago quarter’s 20.1%.
Graco’s Balance Sheet and Cash FlowGraco ended the quarter with $507.6 million in cash and cash equivalents, down from $624.1 million at the end of 2025. It generated net cash of $298 million from operating activities in the first six months of 2026 compared with $308.1 million in the year-ago period. Capital used for purchasing property, plant and equipment totaled $28.6 million compared with $30.2 million in the year-ago period.
Graco paid out dividends worth $97.7 million to its shareholders in the first six months of the year, up 6% from the year-ago period. It repurchased shares worth $331.1 million in the same period.
2026 OutlookGraco continues to expect organic sales to increase in the low single digits on a constant-currency basis in 2026. Sales are anticipated to grow in mid-single digits, including acquisitions. For third-quarter 2026, it expects sales to be in the range of $580-$600 million (excluding the announced acquisition of Valco Melton).
Zacks Rank and Stocks to ConsiderThe company currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are discussed below:
Applied Industrial Technologies (AIT - Free Report) carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Applied Industrial’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 4.0%. In the past 60 days, the Zacks Consensus Estimate for Applied Industrial’s fiscal 2026 bottom line has inched up 0.1%.
Dover Corporation (DOV - Free Report) presently carries a Zacks Rank of 2. Dover’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 2.1%. In the past 60 days, the Zacks Consensus Estimate for DOV’s 2026 earnings has been stable.
Generac Holdings (GNRC - Free Report) currently carries a Zacks Rank of 2. Generac Holdings’ earnings topped the consensus estimate twice and missed on the other two occasions in the trailing four quarters. The average earnings surprise was 7.4%. In the past 60 days, the Zacks Consensus Estimate for GNRC’s 2026 earnings has been stable.
Graco Inc. (GGG - Free Report) came out with quarterly earnings of $0.91 per share, beating the Zacks Consensus Estimate of $0.81 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +12.35%. A quarter ago, it was expected that this company would post earnings of $0.75 per share when it actually produced earnings of $0.66, delivering a surprise of -12%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Graco, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $590.55 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 2.98%. This compares to year-ago revenues of $571.81 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Graco shares have lost about 10.8% since the beginning of the year versus the S&P 500's gain of 9.7%.
What's Next for Graco?While Graco has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Graco was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.81 on $584.75 million in revenues for the coming quarter and $3.10 on $2.35 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Dover Corporation (DOV - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on July 23.
This company is expected to post quarterly earnings of $2.72 per share in its upcoming report, which represents a year-over-year change of +11.5%. The consensus EPS estimate for the quarter has been revised 0.3% higher over the last 30 days to the current level.
Dover Corporation's revenues are expected to be $2.21 billion, up 7.9% from the year-ago quarter.
For the quarter ended June 2026, Graco Inc. (GGG - Free Report) reported revenue of $590.55 million, up 3.3% over the same period last year. EPS came in at $0.91, compared to $0.75 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $608.7 million, representing a surprise of -2.98%. The company delivered an EPS surprise of +12.35%, with the consensus EPS estimate being $0.81.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Graco performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net sales- Expansion Markets: $41.89 million versus $41.72 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +3.3% change.Net Sales- Contractor: $299.42 million compared to the $309.41 million average estimate based on four analysts. The reported number represents a change of +3.6% year over year.Net Sales- Industrial: $249.24 million versus $257.28 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +2.9% change.Operating earnings /(loss)- Industrial: $84.35 million versus $88.86 million estimated by four analysts on average.Operating earnings/(loss)- Expansion Markets: $9.49 million versus the four-analyst average estimate of $9.9 million.Operating earnings /(loss)- Unallocated corporate (expense): $-9.9 million compared to the $-10.11 million average estimate based on four analysts.Operating earnings /(loss)- Contractor: $91.16 million compared to the $80.73 million average estimate based on four analysts.View all Key Company Metrics for Graco here>>>
Shares of Graco have returned -1.4% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
MINNEAPOLIS--(BUSINESS WIRE)--Graco Inc. (NYSE: GGG) today announced results for the second quarter ended June 26, 2026. Summary $ in millions except per share amounts Three Months Ended Six Months Ended Jun 26, 2026 Jun 27, 2025 % Change Jun 26, 2026 Jun 27, 2025 % Change Net Sales $ 590.6 $ 571.8 3 % $ 1,130.7 $ 1,100.1 3 % Operating Earnings 175.1 157.5 11 % 312.9 301.5 4 % Net Earnings 144.9 127.6 14 % 263.4 251.7 5 % Diluted Net.
The upcoming report from Graco Inc. (GGG - Free Report) is expected to reveal quarterly earnings of $0.81 per share, indicating an increase of 8% compared to the year-ago period. Analysts forecast revenues of $608.7 million, representing an increase of 6.5% year over year.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
In light of this perspective, let's dive into the average estimates of certain Graco metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts expect 'Net sales- Expansion Markets' to come in at $41.77 million. The estimate indicates a change of +3% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Net Sales- Contractor' of $309.49 million. The estimate suggests a change of +7.1% year over year.
Analysts' assessment points toward 'Net Sales- Industrial' reaching $257.30 million. The estimate points to a change of +6.2% from the year-ago quarter.
The consensus estimate for 'Operating earnings /(loss)- Industrial' stands at $88.98 million. The estimate compares to the year-ago value of $82.37 million.
The average prediction of analysts places 'Operating earnings/(loss)- Expansion Markets' at $10.02 million. Compared to the present estimate, the company reported $8.83 million in the same quarter last year.
It is projected by analysts that the 'Operating earnings /(loss)- Contractor' will reach $80.74 million. The estimate compares to the year-ago value of $75.49 million.
View all Key Company Metrics for Graco here>>>
Over the past month, shares of Graco have returned -2.5% versus the Zacks S&P 500 composite's -0.6% change. Currently, GGG carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
MINNEAPOLIS--(BUSINESS WIRE)--Graco Inc. (NYSE: GGG) announced today that it will release its second quarter 2026 earnings after the New York Stock Exchange closes on Wednesday, July 22, 2026. A full-text copy of the earnings announcement will be available on the company’s website at investors.graco.com. Graco management will hold a conference call, including slides via webcast, with analysts and institutional investors to discuss the results at 11a.m. EDT / 10a.m. CDT on Thursday, July 23, 2026.
A real-time listen-only webcast of the conference call will be broadcast on the company’s website and by going here: edge.media-server.com. Listeners should register on the website at least 15 minutes prior to the live conference call. For those unable to listen to the live event, a replay of the webcast will be available on the company’s website at investors.graco.com.
ABOUT GRACO
Graco Inc. supplies technology and expertise for the management of fluids in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid and powder materials. A recognized leader in its specialties, Minneapolis-based Graco serves customers around the world in the manufacturing, processing, construction and maintenance industries. For additional information about Graco Inc., please visit us at www.graco.com.
MINNEAPOLIS--(BUSINESS WIRE)--Graco Inc. (NYSE:GGG) announced today that Steven B. Hedlund has been appointed as a member of the company’s Board of Directors, effective September 10, 2026.
Mr. Hedlund is President and Chief Executive Officer of Lincoln Electric Holdings, Inc. (Nasdaq: LECO), a leading manufacturer of advanced arc welding solutions, a role he has held since January 2024. He also serves as its Chairman. Previously, he was Lincoln Electric’s Chief Operating Officer and served in various other operating, strategic and business development leadership roles. Before joining Lincoln Electric, Mr. Hedlund was Vice President, Growth and Innovation and Vice President Strategy and New Business Development at Fortune Brands, Inc. Earlier in his career, he was a principal with the management consulting firm of Booz Allen Hamilton. Mr. Hedlund holds both a bachelor’s degree and a Master of Business Administration from Dartmouth College.
“We are delighted to have Steve join the Graco Board of Directors. He is a proven leader with a growth-oriented mindset and a track record of driving value creation, including in international markets,” said J. Kevin Gilligan, Graco’s Chairman of the Board. “Steve brings with him a deep understanding of the manufacturing sector and global go-to-market strategy development and execution. He is a natural fit for our board, and we look forward to his many contributions to Graco’s future success.”
Mr. Hedlund will serve on the company’s Audit Committee and Management Organization and Compensation Committee.
ABOUT GRACO
Graco Inc. supplies technology and expertise for the management of fluids and coatings in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid and powder materials. A recognized leader in its specialties, Minneapolis-based Graco serves customers around the world in the manufacturing, processing, construction, and maintenance industries. For additional information about Graco Inc., please visit us at www.graco.com.
Graco Inc. NYSE:GGG announced today that Steven B. Hedlund has been appointed as a member of the company’s Board of Directors, effective September 10, 2026.
Mr. Hedlund is President and Chief Executive Officer of Lincoln Electric Holdings, Inc. (Nasdaq: LECO), a leading manufacturer of advanced arc welding solutions, a role he has held since January 2024. He also serves as its Chairman. Previously, he was Lincoln Electric’s Chief Operating Officer and served in various other operating, strategic and business development leadership roles. Before joining Lincoln Electric, Mr. Hedlund was Vice President, Growth and Innovation and Vice President Strategy and New Business Development at Fortune Brands, Inc. Earlier in his career, he was a principal with the management consulting firm of Booz Allen Hamilton. Mr. Hedlund holds both a bachelor’s degree and a Master of Business Administration from Dartmouth College.
“We are delighted to have Steve join the Graco Board of Directors. He is a proven leader with a growth-oriented mindset and a track record of driving value creation, including in international markets,” said J. Kevin Gilligan, Graco’s Chairman of the Board. “Steve brings with him a deep understanding of the manufacturing sector and global go-to-market strategy development and execution. He is a natural fit for our board, and we look forward to his many contributions to Graco’s future success.”
Mr. Hedlund will serve on the company’s Audit Committee and Management Organization and Compensation Committee.
ABOUT GRACO
Graco Inc. supplies technology and expertise for the management of fluids and coatings in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid and powder materials. A recognized leader in its specialties, Minneapolis-based Graco serves customers around the world in the manufacturing, processing, construction, and maintenance industries. For additional information about Graco Inc., please visit us at www.graco.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260612770801/en/
MINNEAPOLIS--(BUSINESS WIRE)--The Board of Directors of Graco Inc. (NYSE:GGG) has declared a regular quarterly dividend of 29.5 cents ($0.295) per common share, payable on August 5, 2026, to shareholders of record at the close of business on July 20, 2026. The Company has approximately 162.1 million shares outstanding.
ABOUT GRACO
Graco Inc. supplies technology and expertise for the management of fluids and coatings in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid and powder materials. A recognized leader in its specialties, Minneapolis-based Graco serves customers around the world in the manufacturing, processing, construction, and maintenance industries. For additional information about Graco Inc., please visit us at www.graco.com.
The Board of Directors of Graco Inc. NYSE:GGG has declared a regular quarterly dividend of 29.5 cents ($0.295) per common share, payable on August 5, 2026, to shareholders of record at the close of business on July 20, 2026. The Company has approximately 162.1 million shares outstanding.
ABOUT GRACO
Graco Inc. supplies technology and expertise for the management of fluids and coatings in both industrial and commercial applications. It designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid and powder materials. A recognized leader in its specialties, Minneapolis-based Graco serves customers around the world in the manufacturing, processing, construction, and maintenance industries. For additional information about Graco Inc., please visit us at www.graco.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260612044286/en/
Canoe Financial LP reduced its stake in shares of Graco Inc. (NYSE:GGG – Free Report) by 12.3% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 486,374 shares of the industrial products company’s stock after selling 68,000 shares during the period. Canoe Financial LP owned approximately 0.29% of Graco worth $39,868,000 at the end of the most recent quarter.
A number of other large investors have also recently made changes to their positions in GGG. Goldman Sachs Group Inc. lifted its position in Graco by 15.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 330,409 shares of the industrial products company’s stock worth $27,592,000 after acquiring an additional 44,573 shares during the period. Geneos Wealth Management Inc. increased its holdings in shares of Graco by 982.6% in the first quarter. Geneos Wealth Management Inc. now owns 498 shares of the industrial products company’s stock valued at $42,000 after purchasing an additional 452 shares during the period. Charles Schwab Investment Management Inc. raised its stake in shares of Graco by 0.9% in the second quarter. Charles Schwab Investment Management Inc. now owns 1,079,571 shares of the industrial products company’s stock worth $92,811,000 after purchasing an additional 9,702 shares during the last quarter. Prudential Financial Inc. lifted its holdings in shares of Graco by 122.0% during the second quarter. Prudential Financial Inc. now owns 33,236 shares of the industrial products company’s stock worth $2,959,000 after purchasing an additional 18,262 shares during the period. Finally, XTX Topco Ltd lifted its holdings in shares of Graco by 262.1% during the second quarter. XTX Topco Ltd now owns 11,729 shares of the industrial products company’s stock worth $1,008,000 after purchasing an additional 8,490 shares during the period. 93.88% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analyst Weigh In Several equities analysts recently weighed in on GGG shares. Weiss Ratings upgraded shares of Graco from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, February 5th. Royal Bank Of Canada lifted their price objective on shares of Graco from $97.00 to $100.00 and gave the company an “outperform” rating in a research note on Wednesday, January 28th. Robert W. Baird set a $96.00 price objective on shares of Graco in a report on Wednesday, January 28th. DA Davidson reiterated a “neutral” rating and issued a $85.00 price objective on shares of Graco in a research note on Monday, February 2nd. Finally, KeyCorp reissued a “sector weight” rating on shares of Graco in a report on Tuesday, January 27th. Four research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $96.50.
Get Our Latest Stock Report on Graco
Graco Trading Down 1.0% Shares of GGG stock opened at $83.82 on Friday. Graco Inc. has a twelve month low of $72.06 and a twelve month high of $95.69. The stock has a market cap of $13.90 billion, a P/E ratio of 27.12, a P/E/G ratio of 2.63 and a beta of 1.07. The stock has a 50 day moving average of $89.56 and a 200 day moving average of $85.33.
Graco (NYSE:GGG – Get Free Report) last released its quarterly earnings data on Monday, January 26th. The industrial products company reported $0.77 EPS for the quarter, hitting the consensus estimate of $0.77. The business had revenue of $593.16 million for the quarter, compared to analyst estimates of $591.99 million. Graco had a return on equity of 19.49% and a net margin of 23.33%.The business’s quarterly revenue was up 8.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.64 EPS. On average, research analysts predict that Graco Inc. will post 3.06 earnings per share for the current fiscal year.
Graco Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Wednesday, May 6th. Investors of record on Monday, April 13th will be issued a dividend of $0.295 per share. The ex-dividend date of this dividend is Monday, April 13th. This represents a $1.18 dividend on an annualized basis and a yield of 1.4%. Graco’s dividend payout ratio is 38.19%.
Graco declared that its Board of Directors has initiated a share repurchase program on Friday, December 5th that allows the company to buyback 15,000,000 outstanding shares. This buyback authorization allows the industrial products company to reacquire shares of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.
Insider Activity In other news, Director J Kevin Gilligan sold 12,870 shares of the stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $89.07, for a total transaction of $1,146,330.90. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Timothy R. White sold 1,469 shares of the firm’s stock in a transaction dated Wednesday, February 4th. The shares were sold at an average price of $90.70, for a total value of $133,238.30. Following the sale, the insider owned 51,430 shares in the company, valued at $4,664,701. This trade represents a 2.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 19,394 shares of company stock worth $1,739,326 in the last ninety days. Corporate insiders own 2.18% of the company’s stock.
Graco Profile (Free Report)
Graco Inc is a leading manufacturer of fluid handling systems and components, headquartered in Minneapolis, Minnesota. Founded in 1926, the company has built a reputation for innovation in spray finishing, lubrication, and fluid management technologies. Graco’s solutions are designed to address the needs of paint and coatings applicators, general industry, and process fluids in a variety of end markets.
The company’s product portfolio includes airless and air-assisted spray equipment, pumps for oil and gas applications, industrial lubrication systems, and automated dispensing equipment.
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SG Americas Securities LLC boosted its stake in Graco Inc. (NYSE:GGG – Free Report) by 186.0% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 123,655 shares of the industrial products company’s stock after acquiring an additional 80,421 shares during the period. SG Americas Securities LLC owned about 0.07% of Graco worth $10,136,000 as of its most recent SEC filing.
Several other large investors also recently bought and sold shares of GGG. Root Financial Partners LLC acquired a new stake in shares of Graco during the third quarter worth about $29,000. Assetmark Inc. lifted its holdings in shares of Graco by 42.6% in the 3rd quarter. Assetmark Inc. now owns 465 shares of the industrial products company’s stock valued at $40,000 after purchasing an additional 139 shares during the last quarter. CX Institutional boosted its position in shares of Graco by 316.7% in the 3rd quarter. CX Institutional now owns 475 shares of the industrial products company’s stock valued at $40,000 after purchasing an additional 361 shares during the period. Geneos Wealth Management Inc. boosted its position in shares of Graco by 982.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 498 shares of the industrial products company’s stock valued at $42,000 after purchasing an additional 452 shares during the period. Finally, TD Private Client Wealth LLC grew its stake in Graco by 116.9% during the 3rd quarter. TD Private Client Wealth LLC now owns 514 shares of the industrial products company’s stock worth $44,000 after buying an additional 277 shares during the last quarter. Institutional investors and hedge funds own 93.88% of the company’s stock.
Graco Stock Up 0.1% Shares of GGG stock opened at $83.82 on Monday. The stock’s 50-day moving average price is $89.56 and its 200 day moving average price is $85.33. The stock has a market capitalization of $13.90 billion, a PE ratio of 27.12, a price-to-earnings-growth ratio of 2.63 and a beta of 1.07. Graco Inc. has a 52-week low of $72.06 and a 52-week high of $95.69.
Graco (NYSE:GGG – Get Free Report) last announced its earnings results on Monday, January 26th. The industrial products company reported $0.77 earnings per share for the quarter, meeting the consensus estimate of $0.77. The company had revenue of $593.16 million for the quarter, compared to the consensus estimate of $591.99 million. Graco had a return on equity of 19.49% and a net margin of 23.33%.The company’s revenue was up 8.1% on a year-over-year basis. During the same period last year, the business posted $0.64 EPS. Analysts expect that Graco Inc. will post 3.06 earnings per share for the current fiscal year.
Graco Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 6th. Investors of record on Monday, April 13th will be given a $0.295 dividend. This represents a $1.18 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date is Monday, April 13th. Graco’s dividend payout ratio (DPR) is 38.19%.
Graco announced that its board has approved a stock repurchase plan on Friday, December 5th that allows the company to repurchase 15,000,000 shares. This repurchase authorization allows the industrial products company to repurchase shares of its stock through open market purchases. Shares repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.
Analyst Upgrades and Downgrades Several research analysts have commented on the company. Robert W. Baird set a $96.00 price target on Graco in a research report on Wednesday, January 28th. Jefferies Financial Group increased their price objective on Graco from $100.00 to $105.00 and gave the company a “buy” rating in a report on Wednesday, January 28th. Weiss Ratings raised shares of Graco from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, February 5th. KeyCorp reiterated a “sector weight” rating on shares of Graco in a research report on Tuesday, January 27th. Finally, Royal Bank Of Canada increased their price target on shares of Graco from $97.00 to $100.00 and gave the stock an “outperform” rating in a research note on Wednesday, January 28th. Four research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $96.50.
Check Out Our Latest Stock Report on Graco
Insider Activity In other Graco news, insider Timothy R. White sold 1,469 shares of the company’s stock in a transaction on Wednesday, February 4th. The shares were sold at an average price of $90.70, for a total transaction of $133,238.30. Following the completion of the transaction, the insider owned 51,430 shares in the company, valued at approximately $4,664,701. This represents a 2.78% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Angela F. Wordell sold 2,832 shares of the firm’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $93.22, for a total transaction of $263,999.04. Following the completion of the sale, the executive vice president owned 13,360 shares of the company’s stock, valued at $1,245,419.20. This trade represents a 17.49% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 19,394 shares of company stock valued at $1,739,326. 2.18% of the stock is owned by corporate insiders.
Graco Profile (Free Report)
Graco Inc is a leading manufacturer of fluid handling systems and components, headquartered in Minneapolis, Minnesota. Founded in 1926, the company has built a reputation for innovation in spray finishing, lubrication, and fluid management technologies. Graco’s solutions are designed to address the needs of paint and coatings applicators, general industry, and process fluids in a variety of end markets.
The company’s product portfolio includes airless and air-assisted spray equipment, pumps for oil and gas applications, industrial lubrication systems, and automated dispensing equipment.
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MINNEAPOLIS--(BUSINESS WIRE)--Graco Inc. (NYSE: GGG) announced today that it will release its First Quarter 2026 earnings after the New York Stock Exchange closes on Wednesday, April 22, 2026. A full-text copy of the earnings announcement will be available on the company's website at investors.graco.com. Graco management will hold a conference call, including slides via webcast, with analysts and institutional investors to discuss the results at 11 a.m. EDT / 10 a.m. CDT on Thursday, April 23,.
Graco Inc. remains a Hold due to high valuation multiples despite strong business fundamentals and a wide economic moat. Recent GGG growth is largely acquisition-driven; organic revenue growth was flat for FY25, with management guiding for low single-digit organic growth in FY26. Risks have increased from volatile oil prices, supply chain disruptions, and a fragile construction market, which comprises 52% of GGG's sales.
MINNEAPOLIS--(BUSINESS WIRE)-- #Centennial--A century ago, in the depths of a Minnesota winter, a downtown Minneapolis parking lot attendant named Russell Gray grew fed up with grease guns that froze, failed, and injured workers while servicing cars. That frustration, and a belief that work should be safer and more reliable, resulted in the invention of an air-powered grease gun that solved a real customer problem, launching Graco Inc. This month, Graco marks its 100th anniversary as a $2 billion global indu.
Wall Street analysts expect Graco Inc. (GGG - Free Report) to post quarterly earnings of $0.75 per share in its upcoming report, which indicates a year-over-year increase of 7.1%. Revenues are expected to be $560.25 million, up 6.1% from the year-ago quarter.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
Bearing this in mind, let's now explore the average estimates of specific Graco metrics that are commonly monitored and projected by Wall Street analysts.
It is projected by analysts that the 'Net Sales- Contractor' will reach $272.75 million. The estimate indicates a year-over-year change of +7%.
The combined assessment of analysts suggests that 'Net Sales- Industrial' will likely reach $246.13 million. The estimate suggests a change of +6.3% year over year.
Analysts forecast 'Operating earnings /(loss)- Industrial' to reach $84.52 million. The estimate compares to the year-ago value of $79.60 million.
The consensus among analysts is that 'Operating earnings /(loss)- Contractor' will reach $69.44 million. The estimate compares to the year-ago value of $61.93 million.
View all Key Company Metrics for Graco here>>>
Shares of Graco have demonstrated returns of +2.4% over the past month compared to the Zacks S&P 500 composite's +9.3% change. With a Zacks Rank #2 (Buy), GGG is expected to beat the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
MINNEAPOLIS--(BUSINESS WIRE)--Graco Inc. (NYSE: GGG) today announced results for the first quarter ended March 27, 2026. Summary $ in millions except per share amounts Three Months Ended Mar 27, 2026 Mar 28, 2025 % Change Net Sales $ 540.1 $ 528.3 2 % Operating Earnings 137.8 144.0 (4 )% Net Earnings 118.5 124.1 (5 )% Diluted Net Earnings per Common Share $ 0.70 $ 0.72 (3 )% Adjusted (non-GAAP): (1) Net Earnings, adjusted $ 111.8 $ 120.
Graco Inc. (GGG - Free Report) came out with quarterly earnings of $0.66 per share, missing the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.7 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -12.00%. A quarter ago, it was expected that this company would post earnings of $0.77 per share when it actually produced earnings of $0.77, delivering no surprise.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
Graco, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $540.14 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 3.5%. This compares to year-ago revenues of $528.28 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Graco shares have added about 6.5% since the beginning of the year versus the S&P 500's gain of 3.2%.
What's Next for Graco?While Graco has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Graco was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.83 on $607.77 million in revenues for the coming quarter and $3.19 on $2.36 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Mueller Water Products (MWA - Free Report) , has yet to report results for the quarter ended March 2026.
This maker of fire hydrants, pipes and water valves is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of +11.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Mueller Water Products' revenues are expected to be $378.15 million, up 3.8% from the year-ago quarter.
Graco Inc. (GGG - Free Report) reported $540.14 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 2.3%. EPS of $0.66 for the same period compares to $0.70 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $559.75 million, representing a surprise of -3.5%. The company delivered an EPS surprise of -12%, with the consensus EPS estimate being $0.75.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Graco performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Contractor: $260 million compared to the $272.48 million average estimate based on four analysts. The reported number represents a change of +2% year over year.Net sales- Expansion Markets: $39.7 million versus $41.21 million estimated by four analysts on average.Net Sales- Industrial: $240.4 million versus the four-analyst average estimate of $245.78 million. The reported number represents a year-over-year change of +3.8%.Operating earnings /(loss)- Contractor: $62.24 million versus the four-analyst average estimate of $69.32 million.Operating earnings /(loss)- Unallocated corporate (expense): $-9.91 million versus the four-analyst average estimate of $-7.65 million.Operating earnings/(loss)- Expansion Markets: $9.64 million compared to the $9.93 million average estimate based on four analysts.Operating earnings /(loss)- Industrial: $75.81 million versus $84.53 million estimated by four analysts on average.View all Key Company Metrics for Graco here>>>
Shares of Graco have returned +2.1% over the past month versus the Zacks S&P 500 composite's +8.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways Graco reported Q1 EPS of 66 cents, missing estimates, while sales rose 2% but lagged forecasts.GGG saw a 6% organic sales decline, offset by acquisitions and currency tailwinds.Margins fell on weak mix and costs, though backlog rose 13% and outlook remains intact. Graco Inc. (GGG - Free Report) reported first-quarter 2026 adjusted earnings of 66 cents per share, down 6% from 70 cents in the year-ago quarter. The bottom line missed the Zacks Consensus Estimate of 75 cents by 12%.
The company’s net sales rose 2% year over year to $540.1 million but lagged the consensus estimate of $560 million by 3.5%. Organic order backlog rose 13% from the end of 2025.
On a regional basis, quarterly sales generated from the Americas increased 3% year over year. In Europe, the Middle East and Africa, sales increased 4% year over year. Sales from the Asia Pacific decreased 5% year over year.
Acquisitions Offset Organic SlideGraco’s acquired operations had a contribution of $26 million to sales growth, while currency translation added roughly $17 million. These tailwinds more than offset a 6% organic decline that management tied to softer construction markets and project timing.
Management highlighted that incoming order rates increased as the quarter progressed, and the company exited the quarter with a solid order trend. This supported the increase in organic order backlog relative to 2025-end.
Graco Segment Sales Show Mixed End MarketsContractor segment sales increased 2% year over year to $260 million, as infrastructure-related demand held up better than residential construction activity. While acquisitions and currency translation both had a positive impact of 3% on sales growth, organic sales decreased 4%.
Industrial segment sales rose 4% to $240.4 million, supported by acquired businesses but weighed down by powder finishing system completions and other projects. Acquisitions had a positive impact of 8% on sales growth. While currency translation had a favorable impact of 4% on sales, organic sales decreased 8%.
Expansion Markets sales decreased 4% to $39.7 million, owing to a decrease in semiconductor application sales in the Americas. While organic sales declined 5% on a year-over-year basis, currency translation had a favorable impact of 1% on sales.
Margin Profile of GracoIn the first quarter, Graco’s cost of sales increased 3.6% year over year to $259.5 million. Gross profit increased 1% to $280.6 million, while the margin of 52% was down 60 basis points (bps) year over year. Margins were hurt due to adverse product and channel mix and the soft margin profile of acquired assets.
Operating income decreased 4% year over year to $137.8 million. The operating margin decreased 180 bps to 25.5% from the year-ago quarter. Interest expenses totaled $836 million compared with $713 million in the previous year’s quarter. The adjusted effective tax rate was 15% compared with the year-ago quarter’s 18%.
Graco’s Balance Sheet and Cash FlowGraco ended the quarter with $712.2 million in cash and cash equivalents, up from $624.1 million at the end of 2025. It generated net cash of $120.2 million from operating activities in the first three months of 2026 compared with $125.4 million in the year-ago period. Capital used for purchasing property, plant and equipment totaled $12.1 million compared with $10.6 million in the year-ago period.
Graco paid out dividends worth $48.9 million to its shareholders in the year, up 0.4% from the year-ago period. It repurchased shares worth $11.8 million in the same period.
2026 OutlookGraco continues to expect organic sales to increase in the low single digits on a constant-currency basis in 2026. Sales are anticipated to grow in mid-single digits, including acquisitions. It expects to incur capital expenditure of roughly $90-$100 million for 2026, and the effective tax rate is projected to be 20-21% for second-quarter and 2026.
Zacks Rank and Stocks to ConsiderThe company currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are discussed below:
DXP Enterprises (DXPE - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DXP Enterprises’ earnings surpassed the consensus estimate by 52.8% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for DXPE’s 2026 earnings has increased by 17.2%.
Nordson Corporation (NDSN - Free Report) currently carries a Zacks Rank of 2 (Buy). Nordson’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 2.5%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 1.8%.
RBC Bearings (RBC - Free Report) presently carries a Zacks Rank of 2. RBC Bearings’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 5.3%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ fiscal 2026 earnings has inched down 0.3%.
