# Graco Stock: A Record Quarter, and the Stock Went Nowhere. Why We Say HOLD (GGG Q2 2026) Page: https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/graco-stock-a-record-quarter-and-the-stock-went-nowhere-why-we-say-hold-ggg-q2-2026 Text version: https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/graco-stock-a-record-quarter-and-the-stock-went-nowhere-why-we-say-hold-ggg-q2-2026.md Podcast: [Charged Alpha Stock Encyclopedia](https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792) Published: 2026-07-24T21:54:34+00:00 Episode link: https://chargedalpha.podbean.com/e/graco-stock-a-record-quarter-and-the-stock-went-nowhere-why-we-say-hold-ggg-q2-2026/ Audio file: https://mcdn.podbean.com/mf/web/oqos1jxd71qgwtq7/audio_w.mp3 Processing state: not_requested JSON: https://stenobird.com/v1/public/podcasts/charged-alpha-stock-encyclopedia-7819792/episodes/graco-stock-a-record-quarter-and-the-stock-went-nowhere-why-we-say-hold-ggg-q2-2026 Duration seconds: 843 ## Resource Graco Inc. (GGG) Q2 2026 — Graco (GGG), the quiet niche leader in precision fluid-handling equipment, reported record Q2 2026 sales and operating earnings — but a lower-quality beat than the headline suggests. Adjusted EPS of $0.91 topped the ~$0.81 estimate (+17% YoY) and GAAP EPS was $0.87 (+14%), yet revenue of $590.6M rose only 3% and actually MISSED the ~$608M Street estimate. Operating earnings rose 11%, helped by one-time tariff refunds and lower opex; sales growth came 'primarily from acquired operations' (organic ~flat; Industrial organic -3%), and $315M of Q2 buybacks flattered EPS. Under the hood the forward setup improved: organic incoming orders grew mid-single-digit, orders are up across all three segments YTD, and Contractor's Americas organic sales grew for the first time in two years. Segments: Contractor $299.4M (+4%, 30% op margin), Industrial $249.2M (+3%, organic -3%, ~34% op margin), Expansion Markets $41.9M (+3%). The balance sheet is a fortress: ~$460M net cash, TTM FCF ~$630M (~5% FCF yield), a Dividend Aristocrat (25+ yrs of raises). FY guide maintained (low-single-digit organic, mid-single with M&A); Q3 sales guided $580-600M ex the pending Valco Melton deal. The stock has slid ~17% from its $96 high to ~$79.5, below its 200-day. Our owner-earnings DCF lands fair value near $88 (~11% above the price). Our call: HOLD. Graco is a hundred-year-old Minneapolis compounder most investors have never heard of — the quiet #1 in precision fluid handling, the pumps, sprayers and dispensing systems that move, meter and spray paint, sealants and coatings. Q2 2026 looked like a clean record: adjusted EPS of $0.91 beat the ~$0.81 estimate (+17% YoY), GAAP EPS $0.87 (+14%), and operating earnings hit a record, up 11%. But the quality of the beat is the s… ## Actions - request_transcript: `POST https://stenobird.com/v1/public/podcasts/charged-alpha-stock-encyclopedia-7819792/episodes/graco-stock-a-record-quarter-and-the-stock-went-nowhere-why-we-say-hold-ggg-q2-2026/transcription-requests` — Idempotently request low-priority transcript generation for this episode. - read_markdown: `GET https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/graco-stock-a-record-quarter-and-the-stock-went-nowhere-why-we-say-hold-ggg-q2-2026.md` — Read the agent-friendly Markdown representation of this episode resource. A page view does not enqueue transcription. Agents should invoke `request_transcript` explicitly when they need this episode processed. ## Transcript Full transcripts are not published on public pages unless there is a clear rights basis.