Stratasys Q3 revenue beats on strength in aerospace and defense segment

Overview

• Polymer 3D printing firm's Q3 revenue up 4.1% yr/yr, slightly beating analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Company lowers full-year 2026 revenue outlook due to longer sales cycles, greater order variability

Outlook

• Stratasys sees 2026 revenue of $556 mln to $561 mln, down from prior $565 mln to $575 mln

• Company expects 2026 non-GAAP gross margin of 46.6% to 46.7%, slightly below prior forecast

• Stratasys anticipates longer sales cycles and greater timing variability for large production orders

Result Drivers

• AEROSPACE AND DEFENSE GROWTH - Co said revenue in its largest business, aerospace and defense, grew over 35% yr/yr and about 25% sequentially

• SHIFT TO MANUFACTURING - Co attributed revenue growth to ongoing shift from rapid prototyping to manufacturing, with growth in aerospace, automotive, dental and direct manufacturing

• SYSTEMS SALES MIX AND TARIFF CREDIT - Improved non-GAAP gross margin was primarily due to better mix of systems sales and a tariff credit, partially offset by lower consumables revenue

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electronic equipment & parts peer group is "buy"

• Wall Street's median 12-month price target for Stratasys Ltd. is $12.00, about 83.5% above its November 11 closing price of $6.54

• The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 51 three months ago

Reuters Recommended Reads

• Nov 10 - Velo3D's Q3 revenue rises 50%, beats estimates

• Nov 10 - Astronics Q3 sales beat estimates on aerospace demand; maintains 2026 revenue guidance

• Nov 9 - Elmet Group Q3 revenue jumps 56% on aerospace demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)