<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from Graco Inc. and subsidiaries consoldiated statements of eaarnings and consolidated balance sheets for the quarterly period ending September 27, 1996 and is qualified in its entirety by reference to such financial statements. </LEGEND> <CIK> 0000042888 <NAME> GRACO INC. <MULTIPLIER> 1,000 <CURRENCY> U.S. DOLLARS <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-27-1996 <PERIOD-START> JUN-29-1996 <PERIOD-END> SEP-27-1996 <EXCHANGE-RATE> 1 <CASH> 7,401 <SECURITIES> 0 <RECEIVABLES> 76,744 <ALLOWANCES> 5,181 <INVENTORY> 48,319 <CURRENT-ASSETS> 145,019 <PP&E> 173,423 <DEPRECIATION> 87,586 <TOTAL-ASSETS> 239,739 <CURRENT-LIABILITIES> 79,113 <BONDS> 10,776 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 17,092 <OTHER-SE> 101,706 <TOTAL-LIABILITY-AND-EQUITY> 239,739 <SALES> 284,932 <TOTAL-REVENUES> 284,932 <CGS> 140,697 <TOTAL-COSTS> 140,697 <OTHER-EXPENSES> 106,561 <LOSS-PROVISION> 155 <INTEREST-EXPENSE> 732 <INCOME-PRETAX> 37,674 <INCOME-TAX> 11,900 <INCOME-CONTINUING> 25,774 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 25,774 <EPS-PRIMARY> 1.47 <EPS-DILUTED> 1.47