Stratasys Posts Adjusted EPS of 4 Cents, Cuts 2026 Revenue Outlook

Key Facts

Stratasys reported third-quarter results on November 12, posting adjusted earnings of 4 cents per share, compared with an estimate of 2 cents, according to the Associated Press. Revenue was $142.6 million, below analysts’ estimate of $144.41 million, according to Investing.com. Year over year, revenue rose 4.1% from $137 million and increased 3.6% from the second quarter, when it was $137.6 million. The results were mixed: profitability and operating growth improved, while revenue missed estimates and the company lowered its annual outlook. Before the announcement, the stock closed at $6.54 on November 11; after the results, it rose 0.76% in premarket trading on November 12 to $6.59.

Non-GAAP net income was $3.5 million, or 4 cents per diluted share, compared with $1.5 million, or 2 cents per share, in the third quarter of 2025. By contrast, the company reported a GAAP net loss of $10.2 million, or 12 cents per diluted share, versus a loss of $55.6 million, or 65 cents per share, a year earlier. The comparable-period loss included a noncash impairment of $33.9 million related to the Ultimaker investment. The GAAP operating loss narrowed to $11 million from $22.7 million a year earlier. On a non-GAAP basis, operating income was $2.7 million, compared with $0.1 million in the same period.

The company’s margins improved year over year: GAAP gross margin rose to 43.7% from 41%, while non-GAAP gross margin increased to 47.8% from 45.3%. Stratasys attributed the latter improvement mainly to better margins in the systems sales mix and the addition of a tariff-fee credit, partially offset by lower consumables revenue. Adjusted EBITDA was $8 million, compared with $5 million a year earlier. By contrast, operations generated $3.5 million in cash during the quarter, down from $6.9 million in the comparable period. The CEO said the results reflected a continuing shift “from rapid prototyping to manufacturing,” citing 4.1% annual revenue growth and disciplined expense management.

Aerospace and defense stood out as a growth driver; its revenue rose more than 35% year over year and about 25% from the second quarter, according to the company, making it the company’s largest business. Systems revenue also reached $35.9 million, an increase of about 12% from $32.1 million in the same period a year earlier. The CEO also cited growth in automotive, dental and Stratasys Direct. These indicators align with management’s comments about demand shifting from prototyping to manufacturing applications, while the improved systems sales mix points to the role of sales composition in supporting margins. But business growth did not prevent the company from lowering its annual revenue estimates.

Stratasys lowered its fiscal 2026 revenue outlook to $556–561 million from $565–575 million previously. It said the revision reflected longer sales cycles and greater variability in the timing of larger production-oriented orders. It also lowered its full-year non-GAAP gross margin outlook to 46.6%–46.7% from 46.7%–47.1%, and its non-GAAP operating expense outlook to $256–257 million from $260–262 million. The company expects a full-year GAAP net loss of $64–77 million and non-GAAP net income of $9–11 million. Its adjusted earnings-per-share outlook is 10–12 cents, compared with analysts’ estimate of 11 cents, according to Investing.com.

On its balance sheet, Stratasys said cash and cash equivalents and short-term deposits totaled $210.7 million on September 30, 2026, and that it had no debt. The company had scheduled its third-quarter results call for November 12 at 8:30 a.m. Eastern time. Formnext 2026 was also scheduled to take place in Frankfurt from November 17 to 20. In the second quarter, the company previously reported revenue of $137.6 million, compared with an estimate of $139.26 million, and earnings per share of 3 cents, versus an estimate of 1 cent, according to Investing.com. That puts third-quarter results within a path of sequential revenue growth, but alongside a lower annual outlook due to deal timing and sales cycles.