Graco Reports Q1 Revenue of $540.1M, Below Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 22 2026
0mins
Should l Buy GGG?
Reports Q1 revenue $540.1M, consensus $560.65M. "Sales increased 2 percent in the quarter, with contributions from acquired businesses offsetting organic revenue declines," said Mark Sheahan, Graco's President and Chief Executive Officer. "In the Contractor segment, demand in infrastructure-related markets continued to be strong and resilient while residential construction activity remained soft. Industrial segment results were impacted by the timing of completion of powder finishing systems and other project activity. Despite a slower start to the year, incoming order rates improved as we progressed throughout the quarter."
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Analyst Views on GGG
Wall Street analysts forecast GGG stock price to rise
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 77.590
Low
89.00
Averages
93.50
High
98.00
Current: 77.590
Low
89.00
Averages
93.50
High
98.00
About GGG
Graco Inc. is a multinational manufacturing company. The Company 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. Its segments include Contractor, Industrial and Expansion Markets. The Contractor segment markets sprayers and equipment that apply paint to walls and other structures, texture to walls and ceilings, insulation to building walls and other items, highly viscous coatings to roofs, and markings on roads, parking lots, athletic fields and floors. The Industrial segment includes its industrial and powder divisions. The Industrial segment markets equipment and solutions for moving and applying paints, powder coatings, sealants, adhesives and other fluids. The Expansion Markets segment includes environmental, semiconductor, high-pressure valves and electric motors businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Graco Celebrates 100 Years with Global Artwork Installation in Minnesota
- Artwork Unveiling: To celebrate its 100th anniversary, Graco unveiled a large-scale land artwork by internationally recognized artist Saype at its Minnesota campus, marking the artist's first installation in the state and enhancing Graco's global brand image.
- Scale and Significance: The piece, titled 'By Our Hands,' spans 210 by 182 feet and depicts two hands weaving connections across a world map, reflecting Graco's global impact and emphasizing the importance of collective collaboration.
- Eco-Friendly Art Creation: Saype utilized Graco's sprayers to apply biodegradable pigments across vast landscapes, ensuring minimal environmental impact while achieving artistic effects, thus embodying sustainable development principles.
- Artist Background: Saype, a self-taught artist concerned about environmental impacts, developed biodegradable paint and was recognized by Forbes as one of the 30 under 30 most influential people in art and culture, further strengthening Graco's ties to the art community.
See More
Graco Reports 2% Sales Growth in Q1 2026
- Sales Performance Overview: Graco reported Q1 2026 sales of $540 million, a 2% increase year-over-year, although business activity started slowly in January, bookings improved by 3% as the quarter progressed, resulting in a $26 million increase in backlog primarily in the Industrial segment.
- Cost Pressure Analysis: Tariffs increased product costs by $7 million in the quarter, yet management remains optimistic about gross margin prospects, asserting that they do not foresee significant impacts on margins moving forward.
- Financial Performance Review: Reported net earnings were $119 million, down 5%, with diluted earnings per share at $0.70, while adjusted non-GAAP net earnings were $0.66, a 6% decline, indicating pressure on the company's profitability.
- Future Outlook and Strategy: Management maintains a low single-digit organic growth guidance for 2026, with expectations for more favorable comparisons in the second half, particularly regarding project activity timing in the Industrial sector, reflecting confidence in future market demand.
See More
Graco (GGG) Q1 2026 Earnings Call Transcript
See More
Graco Reports Q1 Results Below Expectations, Shares Drop
- Missed Expectations: Graco (GGG) reported a 2% year-over-year revenue increase to $540.1 million in Q1, falling short of analysts' expectations of $560.7 million, resulting in a 4.2% drop in after-hours trading.
- Declining Profitability: Adjusted diluted earnings per share fell to $0.66 from $0.70 a year earlier and below the $0.74 estimate, while net income decreased from $124.1 million to $118.5 million, indicating significant profitability challenges.
- Organic Sales Weakness: Despite sales growth driven by acquisitions and favorable currency translation, organic sales declined by 6 percentage points, highlighting weaknesses in the company's core business, as noted by CEO Mark Sheahan, who emphasized that acquired businesses could not offset the organic revenue decline.
- Maintained Full-Year Outlook: Graco maintained its 2026 outlook for low single-digit organic revenue growth and mid-single-digit total growth including acquisitions, reflecting confidence in improving customer demand as evidenced by a 13% increase in order backlog in organic businesses from the end of 2025.
See More
Graco Inc. Scheduled to Announce Q1 Earnings on April 22
- Earnings Announcement Schedule: Graco Inc. is set to release its Q1 2023 earnings report on April 22 after market close, with a consensus EPS estimate of $0.74, reflecting a 5.7% year-over-year growth, indicating stability in profitability.
- Revenue Growth Expectations: The anticipated revenue for Q1 is $560.65 million, representing a 6.1% year-over-year increase, which highlights Graco's positive performance amid recovering market demand and sales growth, potentially boosting investor confidence.
- Performance Forecast Revisions: Over the past three months, EPS estimates have seen four upward revisions and one downward revision, while revenue estimates have experienced five upward revisions and one downward revision, indicating analysts' optimistic outlook on Graco's future performance despite some uncertainties.
- Historical Performance Review: Over the last two years, Graco has beaten EPS estimates 38% of the time and revenue estimates 25% of the time, demonstrating the company's ability to meet performance targets, which may influence investor expectations for its future performance.
See More
Graco's Century Journey and Future Outlook
- Century of Innovation: Founded in 1926, Graco has navigated significant historical events like the Great Depression and World War II, evolving through continuous innovation and market adaptation, now standing as a $2 billion global industrial technology company, showcasing remarkable resilience and market adaptability.
- Global Market Expansion: Graco's products are now sold in over 100 countries, spanning industries such as automotive, construction, and electronics, demonstrating its sustained growth and market penetration during globalization, further solidifying its industry leadership.
- Community Responsibility and Investment: Since 1986, Graco has donated over $50 million through its foundation to STEM education and youth programs, reflecting the company's commitment to nurturing future engineers and technicians, enhancing its brand image and social responsibility.
- Future Development Strategy: Graco plans to continue investing in automation, data-driven systems, and sustainable operations to enhance productivity and customer growth, ensuring competitiveness in the rapidly changing manufacturing landscape, showcasing its strategic vision for long-term development.
See More
Graco Celebrates 100 Years with Global Artwork Installation in Minnesota
- Artwork Unveiling: To celebrate its 100th anniversary, Graco unveiled a large-scale land artwork by internationally recognized artist Saype at its Minnesota campus, marking the artist's first installation in the state and enhancing Graco's global brand image.
- Scale and Significance: The piece, titled 'By Our Hands,' spans 210 by 182 feet and depicts two hands weaving connections across a world map, reflecting Graco's global impact and emphasizing the importance of collective collaboration.
- Eco-Friendly Art Creation: Saype utilized Graco's sprayers to apply biodegradable pigments across vast landscapes, ensuring minimal environmental impact while achieving artistic effects, thus embodying sustainable development principles.
- Artist Background: Saype, a self-taught artist concerned about environmental impacts, developed biodegradable paint and was recognized by Forbes as one of the 30 under 30 most influential people in art and culture, further strengthening Graco's ties to the art community.
See More
Graco Reports 2% Sales Growth in Q1 2026
- Sales Performance Overview: Graco reported Q1 2026 sales of $540 million, a 2% increase year-over-year, although business activity started slowly in January, bookings improved by 3% as the quarter progressed, resulting in a $26 million increase in backlog primarily in the Industrial segment.
- Cost Pressure Analysis: Tariffs increased product costs by $7 million in the quarter, yet management remains optimistic about gross margin prospects, asserting that they do not foresee significant impacts on margins moving forward.
- Financial Performance Review: Reported net earnings were $119 million, down 5%, with diluted earnings per share at $0.70, while adjusted non-GAAP net earnings were $0.66, a 6% decline, indicating pressure on the company's profitability.
- Future Outlook and Strategy: Management maintains a low single-digit organic growth guidance for 2026, with expectations for more favorable comparisons in the second half, particularly regarding project activity timing in the Industrial sector, reflecting confidence in future market demand.
See More
Graco (GGG) Q1 2026 Earnings Call Transcript
See More
Graco Reports Q1 Results Below Expectations, Shares Drop
- Missed Expectations: Graco (GGG) reported a 2% year-over-year revenue increase to $540.1 million in Q1, falling short of analysts' expectations of $560.7 million, resulting in a 4.2% drop in after-hours trading.
- Declining Profitability: Adjusted diluted earnings per share fell to $0.66 from $0.70 a year earlier and below the $0.74 estimate, while net income decreased from $124.1 million to $118.5 million, indicating significant profitability challenges.
- Organic Sales Weakness: Despite sales growth driven by acquisitions and favorable currency translation, organic sales declined by 6 percentage points, highlighting weaknesses in the company's core business, as noted by CEO Mark Sheahan, who emphasized that acquired businesses could not offset the organic revenue decline.
- Maintained Full-Year Outlook: Graco maintained its 2026 outlook for low single-digit organic revenue growth and mid-single-digit total growth including acquisitions, reflecting confidence in improving customer demand as evidenced by a 13% increase in order backlog in organic businesses from the end of 2025.
See More
Graco Inc. Scheduled to Announce Q1 Earnings on April 22
- Earnings Announcement Schedule: Graco Inc. is set to release its Q1 2023 earnings report on April 22 after market close, with a consensus EPS estimate of $0.74, reflecting a 5.7% year-over-year growth, indicating stability in profitability.
- Revenue Growth Expectations: The anticipated revenue for Q1 is $560.65 million, representing a 6.1% year-over-year increase, which highlights Graco's positive performance amid recovering market demand and sales growth, potentially boosting investor confidence.
- Performance Forecast Revisions: Over the past three months, EPS estimates have seen four upward revisions and one downward revision, while revenue estimates have experienced five upward revisions and one downward revision, indicating analysts' optimistic outlook on Graco's future performance despite some uncertainties.
- Historical Performance Review: Over the last two years, Graco has beaten EPS estimates 38% of the time and revenue estimates 25% of the time, demonstrating the company's ability to meet performance targets, which may influence investor expectations for its future performance.
See More
Graco's Century Journey and Future Outlook
- Century of Innovation: Founded in 1926, Graco has navigated significant historical events like the Great Depression and World War II, evolving through continuous innovation and market adaptation, now standing as a $2 billion global industrial technology company, showcasing remarkable resilience and market adaptability.
- Global Market Expansion: Graco's products are now sold in over 100 countries, spanning industries such as automotive, construction, and electronics, demonstrating its sustained growth and market penetration during globalization, further solidifying its industry leadership.
- Community Responsibility and Investment: Since 1986, Graco has donated over $50 million through its foundation to STEM education and youth programs, reflecting the company's commitment to nurturing future engineers and technicians, enhancing its brand image and social responsibility.
- Future Development Strategy: Graco plans to continue investing in automation, data-driven systems, and sustainable operations to enhance productivity and customer growth, ensuring competitiveness in the rapidly changing manufacturing landscape, showcasing its strategic vision for long-term development.
See More
