Graco's stock experienced a significant after-hours plunge of 6.37% following the release of its first-quarter fiscal 2026 results, which fell short of analyst expectations across key financial metrics.
The company reported adjusted earnings per share of $0.66, missing the consensus estimate of $0.74 by approximately 10.8%. Quarterly sales of $540.1 million also came in below the expected $560.5 million. While net sales showed a 2% increase year-over-year, this growth was primarily driven by acquisitions, which masked a 6 percentage point decline in organic sales. Adjusted net earnings of $111.8 million fell short of the $125.8 million estimate, and operating earnings declined 4% due to gross margin pressure and higher operating expenses.
Despite the quarterly miss, Graco maintained its full-year 2026 revenue guidance, expecting low single-digit organic growth on a constant-currency basis and mid-single-digit growth including acquisitions. The company noted that infrastructure-related demand remained strong while residential construction stayed soft, with incoming order rates improving through the quarter.
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