Graco (GGG) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 8% to $586.4M, with 4 percentage points from organic growth and 4 from acquired operations; sales increased across all segments and regions.

• Incoming organic orders rose 7% in Q3 and 4% year to date; organic backlog was up 15% from 2025 year-end.

Financial highlights

• Reported operating earnings fell 10% to $148.1M, net earnings fell 12% to $121.6M, and diluted EPS was $0.75 versus $0.82.

• Adjusted operating earnings rose 1% to $160.9M, adjusted net earnings rose 2% to $131.3M, and adjusted diluted EPS increased 5% to $0.81.

• Nine-month sales increased 4% to $1,717.1M; adjusted operating earnings rose 3% to $490.2M and adjusted diluted EPS rose 6% to $2.42.

• Adjusted operating margin was 27%, down 180 bps YoY, primarily due to unfavorable product and channel mix and acquired-operation dilution.

Outlook and guidance

• Q4 revenue guidance is $610M–$640M, including Valco Melton; assumptions reflect current order trends and no demand acceleration.

• Larger Industrial projects remain subject to cautious spending, longer decision cycles and timing shifts; legacy Industrial markets may remain sluggish through year-end.

• 2026 capital expenditures are expected at $70M–$80M; Q4 and full-year effective tax rates are expected at 20%–21%, excluding specified one-time items.

• FY2027 will have 53 weeks, including 14 weeks in Q4.