AI-extracted from the 10-Q filed 2026-10-21 — Q3 FY2026 (quarter ended September 25, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Graco's third-quarter net sales rose 8% to $586.4M, with 4 points from acquisitions, while GAAP operating earnings fell 10% to $148.1M against a prior-year contingent consideration gain.
Biggest Revenue Drivers
Industrial$264.6M+11% YoY
Growth reflects timing of finishing system sales and other project-related activity, plus acquired operations.
Contractor$276.0M+5% YoY
Organic growth in the Americas driven by the professional paint channel; acquisitions contributed $7M.
Biggest Revenue Drivers
Total revenue: $586.4M+8% YoY
Industrial$264.6M+11% YoY
Growth reflects timing of finishing system sales and other project-related activity, plus acquired operations.
Contractor$276.0M+5% YoY
Organic growth in the Americas driven by the professional paint channel; acquisitions contributed $7M.
Expansion Markets$45.7M+8% YoY
Improved sales volume in semiconductor and environmental product applications.
Largest Expense Items
Cost of products sold$290.2M+14% YoY
Higher product costs, unfavorable effects of lower margin rates of acquired operations, and unfavorable product and channel mix.
General and administrative$56.0M+11% YoY
Acquisition costs of $2M incremental for the quarter, incremental expenses from acquired operations.
Selling, marketing and distribution$71.5M+5% YoY
Includes incremental expenses from acquired operations of $7M for the quarter.
Margins: Gross profit margin rate decreased about 3 percentage points to 50.5% in the quarter, driven by higher product costs, lower-margin acquired operations and unfavorable mix. Adjusted operating earnings rose 1% as price realization offset higher costs.
Watch Items from the Filing
Valco Melton acquisition completed August 31, 2026 for approximately $462M cash; purchase price allocation remains preliminary with $220M goodwill recorded.
Operating earnings fell 10% to $148.1M, primarily due to a $14M prior-year contingent consideration gain that did not repeat.
Borrowed $219M under the revolving credit facility in Q3 to fund acquisitions; long-term debt rose to $103.8M from zero at year-end 2025.
Fourth quarter total company sales guided to $610M to $640M, including Valco Melton.
Recognized IEEPA tariff refunds of $9M net of surcharges year to date following the Supreme Court decision invalidating certain tariffs.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
7 transactions in GGG reported by 3 members of Congress under the STOCK Act, most recent trade Aug 4, 2025. Reported transactions, not recommendations.
About GRACO INC (GGG): stock profile, AI score and financials
GRACO INC (GGG) stock profile, AI quality score, and SEC EDGAR financial data, a Industrials sector company. 13F Pro's AI-powered ranking engine scores GGG at 64.1/100 on a composite quality score built from its SEC filings, placing it at rank #568 of 2,925 stocks — the top 25% of the AI-ranked universe. GGG scores in the top quartile across balance sheet strength (93.8), profitability (81.5), free cash flow (80.4). Areas of concern include revenue growth (39.6), which score below median versus the broader universe. Shareholder dilution risk is elevated at 44.7/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q3 2026), GRACO INC reports quarterly revenue of $586.4M, net income of $121.6M, an operating margin of 25.3%. GGG trades on the NYSE exchange and files with the SEC under CIK 42888. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate GGG daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for GRACO INC directly from SEC EDGAR.