Graco Misses Q3 EPS by $0.02; Sees Q4 Sales of $610M-$640M
Graco missed Q3 EPS estimates by $0.02 while revenue of $586.4 million landed in line, up 7.9% from a year ago. It guided fourth-quarter sales to $610 million-$640 million.
Graco (GGG) reported third-quarter earnings of $0.81 a share, $0.02 below the $0.83 consensus, on net sales of $586.4 million against $590.2 million expected. Sales rose 7.9% from a year ago. The fluid-handling equipment maker guided fourth-quarter sales to $610 million–$640 million, compared with a $645 million consensus. Shares closed at $81.81, up $0.72, ahead of the report, per the wire headline. Graco publishes its results on Graco Investor Relations.
Q3 results
| Measure | Reported | Consensus | Result |
|---|---|---|---|
| Earnings per share | $0.81 | $0.83 | Miss by $0.02 |
| Net sales | $586.4M | $590.2M | In line |
| Net sales growth, year over year | +7.9% | — | Up from $543.4M |
The EPS shortfall is about 2.4% and the revenue shortfall about 0.6%, by our calculation. Third-quarter sales of $543.4 million a year earlier are from Graco's Q3 2025 release. Sales were $4.2 million below the second quarter's $590.6 million, by our calculation. In its second-quarter report, Graco guided Q3 sales to $580 million–$600 million, excluding the then-pending Valco Melton acquisition, so $586.4 million fell within that range.
Fourth-quarter guidance
| Item | Guidance | Consensus |
|---|---|---|
| Q4 2026 sales | $610M–$640M | $645M |
The range midpoint of $625 million is about 3% below the $645 million consensus, by our calculation, though the wire summary classed the guidance as in line. Graco's Q2 release said the company was maintaining full-year guidance of low single-digit organic constant-currency sales growth and mid-single-digit growth including acquisitions. Adding first-half sales of $1,130.7 million, the third quarter and the Q4 midpoint gives about $2.34 billion for the year, by our calculation, against a $2.37 billion consensus.
Where estimates stand
Per the wire summary, analysts expect Q4 EPS of $0.88, and for fiscal 2026 EPS of $3.30 on sales of $2.37 billion. For fiscal 2027 the consensus is EPS of $3.52 on sales of $2.51 billion. Over the last four quarters, Graco's average EPS surprise was 0.0% and its average revenue surprise was −2.3%.
Second-quarter context
In the second quarter, net sales rose 3% to $590.6 million, driven primarily by acquired operations, and diluted EPS was $0.87 (adjusted $0.91). Graco repurchased $315 million of shares in the quarter and $331 million year to date. Starting in Q2 2026, Graco changed its non-GAAP method to exclude acquisition costs and amortization of acquired intangibles. See the Q2 2026 results exhibit filed with the SEC.
Sources: Graco Q2 2026 results (SEC filing) and Graco Investor Relations, with Q3 results, consensus estimates and the share price as shown in the wire headline. This is informational, not a recommendation to buy or sell.
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