Zacks Research Issues Optimistic Outlook for Graco Earnings

Graco Inc. (NYSE:GGG) – Zacks Research increased their Q1 2026 EPS estimates for shares of Graco in a research note issued on Monday, February 16th. Zacks Research analyst Team now expects that the industrial products company will earn $0.74 per share for the quarter, up from their prior estimate of $0.73. The consensus estimate for Graco’s current full-year earnings is $3.06 per share. Zacks Research also issued estimates for Graco’s Q2 2026 earnings at $0.82 EPS, Q4 2026 earnings at $0.82 EPS, FY2026 earnings at $3.16 EPS, Q1 2027 earnings at $0.72 EPS, Q2 2027 earnings at $0.88 EPS, Q4 2027 earnings at $0.94 EPS, FY2027 earnings at $3.36 EPS and FY2028 earnings at $3.95 EPS.

Several other research analysts have also commented on the company. Royal Bank Of Canada lifted their price target on Graco from $97.00 to $100.00 and gave the stock an “outperform” rating in a report on Wednesday, January 28th. DA Davidson reaffirmed a “neutral” rating and set a $85.00 target price on shares of Graco in a research note on Monday, February 2nd. KeyCorp reiterated a “sector weight” rating on shares of Graco in a report on Tuesday, January 27th. Jefferies Financial Group raised their price target on shares of Graco from $100.00 to $105.00 and gave the stock a “buy” rating in a report on Wednesday, January 28th. Finally, Weiss Ratings raised shares of Graco from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, February 5th. Four research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, Graco presently has an average rating of “Moderate Buy” and a consensus price target of $96.50.

Graco Stock Performance

NYSE GGG opened at $92.99 on Wednesday. The stock’s fifty day moving average is $87.12 and its two-hundred day moving average is $84.68. The firm has a market capitalization of $15.37 billion, a P/E ratio of 30.09, a price-to-earnings-growth ratio of 2.93 and a beta of 1.08. Graco has a fifty-two week low of $72.06 and a fifty-two week high of $95.69.

Graco (NYSE:GGG) last posted its quarterly earnings results on Monday, January 26th. The industrial products company reported $0.77 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.77. Graco had a return on equity of 19.49% and a net margin of 23.33%.The business had revenue of $593.16 million during the quarter, compared to analyst estimates of $591.99 million. During the same period in the prior year, the business earned $0.64 earnings per share. The business’s revenue was up 8.1% compared to the same quarter last year.

Graco declared that its Board of Directors has initiated a stock repurchase plan on Friday, December 5th that authorizes the company to repurchase 15,000,000 shares. This repurchase authorization authorizes the industrial products company to buy shares of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board believes its stock is undervalued.

Graco Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 6th. Stockholders of record on Monday, April 13th will be paid a $0.295 dividend. The ex-dividend date of this dividend is Monday, April 13th. This represents a $1.18 dividend on an annualized basis and a dividend yield of 1.3%. Graco’s payout ratio is presently 38.19%.

Insider Transactions at Graco

In related news, EVP Kathryn L. Schoenrock sold 2,223 shares of the firm’s stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $88.06, for a total transaction of $195,757.38. Following the completion of the transaction, the executive vice president directly owned 7,846 shares in the company, valued at $690,918.76. This trade represents a 22.08% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Timothy R. White sold 1,469 shares of the business’s stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $90.70, for a total transaction of $133,238.30. Following the sale, the insider owned 51,430 shares in the company, valued at $4,664,701. This trade represents a 2.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 19,394 shares of company stock worth $1,739,326 over the last quarter. 2.19% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Graco

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Root Financial Partners LLC purchased a new stake in shares of Graco during the third quarter worth $29,000. NewSquare Capital LLC grew its stake in Graco by 320.7% during the 2nd quarter. NewSquare Capital LLC now owns 345 shares of the industrial products company’s stock worth $30,000 after purchasing an additional 263 shares in the last quarter. CX Institutional increased its holdings in Graco by 316.7% during the 3rd quarter. CX Institutional now owns 475 shares of the industrial products company’s stock worth $40,000 after purchasing an additional 361 shares during the period. Assetmark Inc. increased its holdings in Graco by 42.6% during the 3rd quarter. Assetmark Inc. now owns 465 shares of the industrial products company’s stock worth $40,000 after purchasing an additional 139 shares during the period. Finally, Field & Main Bank acquired a new stake in Graco in the 4th quarter valued at about $41,000. Hedge funds and other institutional investors own 93.88% of the company’s stock.

Key Stories Impacting Graco

Here are the key news stories impacting Graco this week:

• Positive Sentiment: Zacks raised several near-term estimates (small upgrades that support modestly higher expectations): Q4 2027 EPS to $0.94 (from $0.93), Q2 2026 to $0.82 (from $0.80), Q1 2026 to $0.74 (from $0.73), and nudged FY2026 to $3.16 (from $3.15). These incremental upgrades signal slightly stronger near-term revenue/profit assumptions.
• Positive Sentiment: Zacks published a FY2028 EPS projection of $3.95, providing a multi-year growth view that could support a higher forward valuation if realized.
• Neutral Sentiment: Two insiders — Joseph Humke and Inge Grasdal — exercised options recently; reports show the exercises realized $0 proceeds. Insider option activity without sales is ambiguous for sentiment (not an outright insider sell or buy). Joseph Humke Exercises Inge Grasdal Exercises
• Negative Sentiment: Zacks also trimmed several near-term forecasts (small downgrades): Q4 2026 to $0.82 (from $0.84), Q1 2027 to $0.72 (from $0.73), Q2 2027 to $0.88 (from $0.89), and lowered FY2027 to $3.36 (from $3.37). The cuts are modest but contribute to mixed guidance and may weigh on sentiment given GGG’s current premium valuation (P/E ~30).
• Negative Sentiment: TipRanks/Market commentary highlighted a new risk disclosure around shifting U.S. and foreign tariffs — potential higher input costs, margin pressure, and demand impacts for global end markets. That policy risk can add uncertainty to margins and international sales assumptions. Tariff Risk Article

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.