Graco (NYSE:GGG) Issues Quarterly Earnings Results

Key Points

• Q1 miss: Graco reported EPS of $0.66 versus a $0.75 consensus and revenue of $540.1M vs. $561.4M expected; revenue was up 2.2% YoY but partly acquisition‑driven and margins slipped.
• Balance sheet & dividend: Cash and equivalents rose ~33% to ~$712M, and the company declared a quarterly dividend of $0.295 ($1.18 annual, ~1.4% yield) with a ~38% payout ratio.
• Market reaction & sentiment: Shares traded down about 2.1% (opened $85.42); insiders have been selling recently while analysts hold a Moderate Buy consensus with an average target of $96.50.

Graco (NYSE:GGG - Get Free Report) released its quarterly earnings data on Wednesday. The industrial products company reported $0.66 EPS for the quarter, missing the consensus estimate of $0.75 by ($0.09), FiscalAI reports. The company had revenue of $540.14 million during the quarter, compared to analyst estimates of $561.35 million. Graco had a net margin of 23.33% and a return on equity of 19.49%. The company's quarterly revenue was up 2.2% compared to the same quarter last year. During the same period in the previous year, the company posted $0.70 EPS.

Graco Trading Down 2.1%

NYSE GGG opened at $85.42 on Thursday. The company has a market cap of $14.16 billion, a price-to-earnings ratio of 27.64, a PEG ratio of 2.74 and a beta of 1.09. The company has a 50 day moving average of $88.42 and a 200-day moving average of $85.50. Graco has a 1-year low of $78.10 and a 1-year high of $95.69.

Graco Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, May 6th. Shareholders of record on Monday, April 13th will be given a dividend of $0.295 per share. This represents a $1.18 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Monday, April 13th. Graco's dividend payout ratio is presently 38.19%.

Graco News Summary

Here are the key news stories impacting Graco this week:

• Positive Sentiment: Acquisitions contributed to sales growth and management highlighted M&A as a driver of the quarter’s revenue improvement (net sales +2% YoY). Acquisitions Drive Sales Growth
• Positive Sentiment: Balance-sheet strength: cash & cash equivalents rose ~33% YoY to ~$712M, giving Graco flexibility for buybacks, dividends or further M&A. Graco Inc. (GGG) Stock Falls on Q1 2026 Earnings
• Positive Sentiment: Some analysts remain constructive (Jefferies buy; median price-targets above the current price), which may support the stock once execution stabilizes. Graco Inc. (GGG) Stock Falls on Q1 2026 Earnings
• Neutral Sentiment: Top-line was modestly positive: revenue grew ~2.2% YoY to ~$540M, but growth was below expectations and partially acquisition-driven. Press Release / Slide Deck
• Negative Sentiment: Q1 EPS and revenue missed consensus: GAAP EPS came in below estimates ($0.66–$0.70 reported vs. ~$0.74 consensus) and revenue was roughly $540M vs. ~$561M expected — the main reason for the intraday decline. Graco Inc. (GGG) Misses Q1 Earnings and Revenue Estimates
• Negative Sentiment: Profitability slipped: operating earnings and net income declined YoY (operating earnings down ~4%, net earnings down ~5%), and operating margin pressure was noted. Graco Inc. (GGG) Stock Falls on Q1 2026 Earnings
• Negative Sentiment: Insider selling and large institutional reductions reported recently may weigh on sentiment; several execs sold shares and some funds materially trimmed positions. Insider & Institutional Activity
• Negative Sentiment: Analyst estimate cuts (Zacks and others trimmed near‑term EPS forecasts before the print), increasing the risk of further downward revisions if margins don’t recover. Analyst Estimate Coverage

Insider Buying and Selling

In other Graco news, 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 transaction, the insider directly owned 51,430 shares of the company's stock, valued at $4,664,701. This trade represents a 2.78% decrease in their position. The transaction 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 business's stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $93.22, for a total transaction of $263,999.04. Following the completion of the transaction, the executive vice president owned 13,360 shares of the company's stock, valued at $1,245,419.20. The trade was a 17.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 19,394 shares of company stock valued at $1,739,326. Company insiders own 2.18% of the company's stock.

Hedge Funds Weigh In On Graco

Several hedge funds and other institutional investors have recently modified their holdings of the business. Geneos Wealth Management Inc. lifted 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 worth $42,000 after acquiring an additional 452 shares during the last quarter. 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 valued at $62,000 after purchasing an additional 219 shares during the last quarter. Los Angeles Capital Management LLC acquired a new position in Graco during the 4th quarter worth approximately $63,000. EverSource Wealth Advisors LLC increased its position in Graco by 97.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,765 shares of the industrial products company's stock worth $152,000 after purchasing an additional 870 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. lifted its stake in Graco by 5.2% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,813 shares of the industrial products company's stock valued at $231,000 after purchasing an additional 139 shares during the last quarter. Institutional investors own 93.88% of the company's stock.

Analysts Set New Price Targets

GGG has been the subject of several recent analyst reports. Weiss Ratings upgraded Graco from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, February 5th. Royal Bank Of Canada upped their price objective on shares of Graco from $97.00 to $100.00 and gave the company an "outperform" rating in a report on Wednesday, January 28th. DA Davidson reissued a "neutral" rating and issued a $85.00 price objective on shares of Graco in a research report on Monday, February 2nd. KeyCorp restated a "sector weight" rating on shares of Graco in a research note on Tuesday, January 27th. Finally, Robert W. Baird set a $96.00 target price on shares of Graco in a report on Wednesday, January 28th. Four analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $96.50.

Graco Company Profile

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.