Graco Inc. Q3 2026 Earnings Recap

Graco shares fell 18.1% after earnings, with investors likely focused on the cautious outlook: management said the fourth-quarter forecast does not assume demand acceleration, while third-quarter revenue was slightly below the company’s comparable guidance range as Industrial projects slipped. Adjusted operating margin also declined nearly 180 basis points year over year.

Key Takeaways

• Q3 revenue reached a record $586 million, up 8% year over year, including 4% organic growth; all three segments and reportable regions contributed.
• Revenue was slightly below the company’s $580–$600 million guidance range excluding Valco Melton, mainly because of delayed or pushed-out larger Industrial projects.
• Adjusted EPS rose 5% to $0.81, but adjusted operating margin fell nearly 180 basis points to 27%, primarily reflecting product and channel mix, including more Powder Finishing systems.
• Q4 revenue is forecast at $610–$640 million. Management cited order trends and backlog but cautioned that the outlook does not assume demand acceleration and that larger project schedules can shift revenue between periods.
• Organic incoming orders increased 7% in Q3, and backlog excluding acquisitions was up $51 million, or 18%, from the start of the year as of October 16.