RBC Capital maintains Outperform rating on Graco, $82 price target

Graco's (GGG) shares dropped 15% after Q3 adjusted EPS ($0.81) and revenue ($586.4M) missed estimates, and Q4 revenue outlook ($610M-$640M) fell short of consensus. Organic sales grew 7%, but higher costs offset price increases, limiting operating earnings growth to 1%. CEO Mark Sheahan called it a 'solid quarter,' but investors reacted negatively to the misses and light guidance.

Graco Inc (GGG) reported Q3 2026 sales of $586M, slightly below guidance. Adjusted operating margin declined 180bps to 27%. Industrial segment growth was sluggish, while Contractor segment showed organic growth. Q4 revenue guidance is $610-$640M, implying flattish growth. CEO Mark Sheahan noted cautious industrial markets but 'green shoots' of recovery. The company plans balanced capital allocation between M&A and buybacks.

Graco (NYSE:GGG) reported Q3 2026 sales of $586M, up from prior periods. The company announced licensing deals in data center cooling with ABB and acquired Valco Melton to expand margins. Management highlighted a growing order backlog and steady demand in key markets, with plans to increase EBITDA margins at Valco Melton to mid-20% within 3 years.

Graco (GGG) reported Q3 sales growth of 5%, with organic sales up 2%. Industrial sales rose 11%, driven by powder finishing systems and QUANTM electric pumps. Expansion Markets sales increased 8%, led by semiconductor revenue. Management expects stable pricing and cost dynamics. Graco completed the Valco Melton acquisition, targeting mid-20% EBITDA margins within three years. The company repurchased $467M in shares and plans balanced capital allocation.

Graco (GGG) reported Q3 2026 revenue of $586M, up 8% YoY, with organic growth of 4%. All segments and regions contributed. Order activity improved, with organic incoming orders up 7%. The company acquired Valco Melton, expecting revenue and operating synergies. Q4 revenue is projected at $610M-$640M. Adjusted EPS grew 5% to $0.81, with operating margin at 27%.

Graco Inc. (NYSE: GGG) reported Q3 2026 revenue of $586M, up 8% YoY, but shares fell 13.85% on margin pressure and cautious outlook. Adjusted EPS was $0.81, missing estimates. Operating margin declined 180 bps to 27%. Management cited product mix and acquisition impacts. Organic orders rose 7%, and backlog grew 15%. Guidance for Q4 2026 revenue is $610M-$640M.