Graco Q1 sales, adjusted EPS miss analyst expectations

Graco

22/04/2026 21:21

Overview

U.S. fluid handling equipment maker's Q1 sales rose 2% but missed analyst expectations

Adjusted EPS for Q1 fell and missed analyst expectations

Acquisitions and currency gains offset 6 percentage point organic sales decline in Q1

Outlook

Graco maintains 2026 revenue guidance of low single-digit organic growth on a constant-currency basis

Company expects mid-single-digit 2026 revenue growth including acquisitions

Graco says organic order backlog increased 13% from end of 2025, supporting full-year outlook

Result Drivers

ACQUISITIONS AND CURRENCY - Sales growth was driven by acquired operations and favorable currency translation, offsetting a 6 percentage point organic sales decline

GROSS MARGIN PRESSURE - Gross margin rate declined due to unfavorable product and channel mix and lower margin rates of acquired operations

HIGHER OPERATING EXPENSES - Operating expenses increased, mainly from acquired operations and currency translation effects

Company press release: ID:nBwD2vpca

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Miss
$540.1 mln
$560.46 mln (9 Analysts)
Q1 Adjusted EPS
Miss
$0.66
$0.74 (9 Analysts)
Q1 EPS
$0.70
Q1 Adjusted net earnings
Miss
$111.8 mln
$125.80 mln (6 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

Wall Street's median 12-month price target for Graco Inc is $97.00, about 11.1% above its April 21 closing price of $87.28

The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 26 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)