Graco Inc's 10-Q: revenue up 5.4% over twelve months

Graco Inc filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $2.31 billion, which rose 5.4% on the year before. That growth rate was up 0.8 percentage points on the rate a quarter earlier.

Profitability

The trailing gross margin was 52.0%. The trailing operating margin was 26.8%, down 0.4 percentage points from a year earlier. The trailing net margin was 22.4%. Net income over the twelve months was $517.5 million, which rose 3.9% on the year before.

Cash flow

Operating cash flow over the twelve months was $659.8 million, down 1.9% on the year before. Capital spending was $59.7 million, or 2.6% of revenue. Free cash flow, operating cash flow less capital spending, was $600.1 million, down 4.0% on the year before. Free cash flow was 26.0% of revenue (the free-cash-flow margin), down 2.5 percentage points from a year earlier.

Share count

The average diluted share count fell 2.4% over the year.

Against its own history

Today’s free-cash-flow margin of 26.0% is higher than 92% of the company’s own past quarterly readings, which have ranged from 8.1% to 28.5%. Today’s operating margin of 26.8% is higher than 77% of the company’s own past quarterly readings, which have ranged from 9.1% to 29.5%. Today’s twelve-month revenue growth rate of 5.4% is higher than 37% of the company’s own past quarterly readings, which have ranged from −6.2% to 31.5%.

What it means for value

In our model, growth 5 percentage points lower would lower the value by 25.0%, and 5 percentage points higher would raise it by 32.7%. A free-cash-flow margin 1 percentage point lower would lower it by 3.8%.

What to watch

The next filing will provide updated figures for revenue growth and operating margins, allowing for a comparison against the current trailing twelve-month rates. It will also disclose the latest operating cash flow and capital spending amounts, which determine the free-cash-flow margin. These data points will show whether the recent trends in profitability and cash generation continue or shift.