<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