Stratasys (NASDAQ:SSYS) Releases Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Stratasys beat earnings expectations: Q2 EPS was $0.03 versus the $0.01 consensus estimate, while revenue of $137.6 million was slightly below expectations and roughly flat year over year.
• Manufacturing demand showed strength: Consumables revenue reached a record $66.3 million, Stratasys Direct revenue rose 12.1%, and aerospace and defense revenue increased 17% year over year.
• Cash flow remains a concern: Negative quarterly operating cash flow of $18.7 million led Stratasys to withdraw its full-year 2026 positive operating-cash-flow outlook, despite maintaining fiscal 2026 revenue guidance of $565 million to $575 million and EPS guidance of $0.09 to $0.14.

Stratasys (NASDAQ:SSYS - Get Free Report) posted its earnings results on Thursday. The technology company reported $0.03 EPS for the quarter, topping the consensus estimate of $0.01 by $0.02, FiscalAI reports. The business had revenue of $137.61 million during the quarter, compared to the consensus estimate of $138.48 million. Stratasys had a negative return on equity of 1.73% and a negative net margin of 21.00%.Stratasys's revenue was down .4% on a year-over-year basis. During the same quarter last year, the company earned $0.03 EPS. Stratasys updated its FY 2026 guidance to 0.090-0.140 EPS.

Here are the key takeaways from Stratasys' conference call:

• Manufacturing demand strengthened: Consumables revenue reached a quarterly record of $66.3 million, while Stratasys Direct revenue grew 12.1% year over year, reflecting higher production-part utilization.
• Aerospace and defense revenue increased 17% year over year, supported by U.S. Air Force depot sustainment programs, defense-related drone and munitions production, and a robust pipeline of large multi-unit deals.
• Stratasys expects its pending $42.5 million cash acquisition of Markforged to add continuous carbon-fiber technology, software, talent, and channel reach, with positive EBITDA contribution and meaningful synergies expected within the first year after closing.
• Revenue was roughly flat year over year at $137.6 million, and system revenue fell to $26.4 million from $30.6 million; management said it expects a notable uptick in system sales during the second half.
• Operating cash flow was negative $18.7 million in the quarter, prompting the company to withdraw its expectation for positive full-year 2026 operating cash flow, although it still expects positive cash flow in the second half.

Stratasys Trading Up 1.5%

Shares of NASDAQ:SSYS traded up $0.13 during midday trading on Thursday, hitting $8.97. The company had a trading volume of 1,098,167 shares, compared to its average volume of 908,996. Stratasys has a 12 month low of $7.34 and a 12 month high of $12.81. The firm has a fifty day simple moving average of $8.48 and a 200 day simple moving average of $8.95. The stock has a market cap of $772.94 million, a price-to-earnings ratio of -6.64 and a beta of 1.94.

Hedge Funds Weigh In On Stratasys

Institutional investors have recently modified their holdings of the stock. Envestnet Asset Management Inc. boosted its holdings in Stratasys by 8.3% in the third quarter. Envestnet Asset Management Inc. now owns 15,680 shares of the technology company's stock worth $176,000 after purchasing an additional 1,199 shares during the last quarter. Van ECK Associates Corp raised its stake in Stratasys by 8.9% during the 4th quarter. Van ECK Associates Corp now owns 19,475 shares of the technology company's stock valued at $169,000 after buying an additional 1,590 shares during the last quarter. Invesco Ltd. raised its stake in Stratasys by 2.8% during the 4th quarter. Invesco Ltd. now owns 88,856 shares of the technology company's stock valued at $771,000 after buying an additional 2,380 shares during the last quarter. Global Retirement Partners LLC bought a new position in shares of Stratasys during the 4th quarter valued at $26,000. Finally, Advisory Services Network LLC purchased a new position in shares of Stratasys in the 3rd quarter worth $34,000. 75.77% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the stock. Zacks Research upgraded shares of Stratasys from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 27th. Weiss Ratings upgraded Stratasys from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Thursday, May 21st. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $12.33.

More Stratasys News

Here are the key news stories impacting Stratasys this week:

• Positive Sentiment: Stratasys reported adjusted earnings of $0.03 per share, exceeding the $0.01 analyst consensus and matching the year-ago result. Stratasys Surpasses Q2 Earnings Estimates
• Positive Sentiment: The company reaffirmed its fiscal 2026 revenue outlook of $565 million to $575 million and raised or maintained EPS guidance at $0.09 to $0.14, above the current analyst estimate of $0.06. Stratasys Q2 Results and Guidance
• Neutral Sentiment: Second-quarter revenue was $137.6 million, nearly flat year over year but slightly below the $138.5 million consensus estimate. Stratasys Reports Sales Below Estimates
• Negative Sentiment: Stratasys lowered its full-year operating cash-flow outlook, while profitability remains weak: net margin was negative 21% and return on equity was negative 1.73%. Stratasys Reports Mixed Q2 Results

About Stratasys

Stratasys, Inc is a global leader in additive manufacturing and 3D printing solutions, offering a comprehensive portfolio of technologies and materials for rapid prototyping and production. Founded in 1989 by Scott and Lisa Crump, the company pioneered fused deposition modeling (FDM) and has since expanded its capabilities to include PolyJet, stereolithography and metal deposition systems. Stratasys serves a broad array of customers, from small design studios to major industrial manufacturers, enabling accelerated product development and on-demand part production.

The company's product line encompasses both desktop and industrial-grade 3D printers, dedicated support materials and proprietary software designed to streamline the digital manufacturing workflow.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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