Stratasys (NASDAQ:SSYS) Reports Sales Below Analyst Estimates In Q2 CY2026 Earnings

3D printing company Stratasys (NASDAQ:SSYS) missed Wall Street’s revenue expectations in Q2 CY2026, with sales flat year on year at $137.6 million. On the other hand, the company’s outlook for the full year was close to analysts’ estimates with revenue guided to $570 million at the midpoint. Its non-GAAP profit of $0.03 per share was $0.02 above analysts’ consensus estimates.

Is now the time to buy Stratasys? Find out in our full research report.

Company Overview

Born from the Founder’s idea of making a toy frog with a glue gun, Stratasys (NASDAQ:SSYS) offers 3D printers and related materials, software, and services to many industries.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Stratasys struggled to consistently increase demand as its $547.3 million of sales for the trailing 12 months was close to its revenue five years ago. This was below our standards and suggests it’s a lower quality business.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Stratasys’s recent performance shows its demand remained suppressed as its revenue has declined by 4.5% annually over the last two years.

Stratasys also breaks out the revenue for its most important segments, Products and Services, which are 67.4% and 32.6% of revenue. Over the last two years, Stratasys’s Products revenue (hard goods like 3D printers) averaged 3.1% year-on-year declines while its Services revenue (service contracts, consulting) averaged 2.3% declines.

This quarter, Stratasys missed Wall Street’s estimates and reported a rather uninspiring 0.3% year-on-year revenue decline, generating $137.6 million of revenue.

Looking ahead, sell-side analysts expect revenue to grow 5.4% over the next 12 months. While this projection suggests its newer products and services will fuel better top-line performance, it is still below average for the sector.

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Operating Margin

Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development.

Stratasys’s high expenses have contributed to an average operating margin of negative 12.7% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out. It’s hard to trust that the business can endure a full cycle.

Analyzing the trend in its profitability, Stratasys’s operating margin decreased by 2.9 percentage points over the last five years. Stratasys’s performance was poor no matter how you look at it – it shows that costs were rising and it couldn’t pass them onto its customers.

Stratasys’s operating margin was negative 9.8% this quarter. The company’s consistent lack of profits raises a flag.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions.

Stratasys’s full-year EPS grew at a spectacular 16.4% compounded annual growth rate over the last four years, better than the broader industrials sector.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

Stratasys’s EPS grew at an astounding 12,590,738,833% compounded annual growth rate over the last two years, higher than its 4.5% annualized revenue declines. This tells us management adapted its cost structure in response to a challenging demand environment.

Diving into Stratasys’s quality of earnings can give us a better understanding of its performance. Stratasys’s operating margin has expanded over the last two years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

In Q2, Stratasys reported adjusted EPS of $0.03, in line with the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Stratasys’s full-year EPS to grow 40.9% from $0.11 to $0.16.

Key Takeaways from Stratasys’s Q2 Results

It was good to see Stratasys beat analysts’ EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. On the other hand, its revenue slightly missed. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 2.4% to $9.06 immediately following the results.

Indeed, Stratasys had a rock-solid quarterly earnings result, but is this stock a good investment here? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).