Proto Labs Inc

Proto Labs raised its full-year 2026 revenue growth guidance to 8%–10% and issued third-quarter guidance for revenue of US$145.0 million to US$153.0 million and GAAP diluted EPS of US$0.34 to US$0.42. The company reported second-quarter sales of US$149.34 million and net income of US$9.15 million, while management highlighted a 17% year-over-year increase in revenue per customer. Proto Labs also filed a US$29.68 million ESOP-related shelf registration for 395,000 common shares, underscoring deeper enterprise engagement and ongoing investment in its workforce.

Proto Labs posted record revenue of $149.3 million for the second quarter of 2026, a 10.2% year-over-year increase in constant currencies, and raised its full-year revenue growth outlook to 8-10%. Gross margin expanded 200 basis points to 46.8%, while adjusted earnings per share of $0.60 marked the highest since the third quarter of 2020, up 45% from a year earlier. Injection molding revenue accelerated 12.9% and CNC machining revenue grew 13.1%, both driven by strength in aerospace and defense, which now accounts for 25% of total revenue. 3D printing revenue declined 2.7% year-over-year, and network revenue was flat, while factory revenue grew 14%. The company generated $15.4 million in cash from operations and held $62.9 million in cash and investments with no debt.

Proto Labs is back in focus after expanding its manufacturing support for drone manufacturers, adding tighter tolerance quick-turn CNC machining and advanced 3D printing as demand in the drone sector continues to build. The stock last closed at $74.40, while the most followed narrative points to a fair value of about $75.67, leaving a modest 2% gap. The company has seen a 90-day share price return of 21.17% and a year-to-date return of 44.89%, with a one-year total shareholder return of 85.35%. Ongoing investments in sales enablement and marketing have driven an 11% year-over-year increase in revenue per customer and a 44% rise in cross-platform adoption. However, investors must weigh risks including reliance on large Aerospace & Defense accounts and pressure in legacy prototyping and injection molding, while the current P/E ratio of 68.7x sits well above the US Machinery industry average of 26.5x.

Protolabs has expanded its manufacturing capabilities to support drone manufacturers amid rapid industry growth. The company's drone customer revenue has grown more than 90% since 2023 with a compound annual growth rate of nearly 40%. Expanded capabilities include quick-turn CNC machining for end-use metal and plastic parts with tighter tolerances and greater precision, as well as advanced Multi Jet Fusion 3D printing through a partnership with HP Additive tailored to drone manufacturing. The global drone industry is currently valued at up to $69 billion and is expected to reach $140 billion within the next decade. Protolabs will showcase its drone manufacturing capabilities at the Commercial UAV Expo in Las Vegas from September 1 to 3.

Enovis, Insteel Industries, Mueller Water Products, and Proto Labs are highlighted as growth stocks trading under $100 with strong long-term potential. Enovis saw 11% reconstructive sales growth in Q1 2026 and holds a Strong Buy consensus with a $42 average price target, roughly 91% above its current $22. Insteel Industries reported Q2 sales up 7.5% year over year, driven by infrastructure spending and record data center construction permits. Mueller Water Products posted Q2 net sales up 4.6% and benefits from $55 billion in federal water infrastructure funding. Proto Labs is pivoting from prototyping to production-grade manufacturing, with a $1.2 billion market cap and shares at $80.

Zacks Investment Research identifies DuPont de Nemours, Proto Labs, AMETEK, and ATI as compelling 3D printing stocks for long-term returns. DuPont strengthened its medical additive manufacturing capabilities through the 2023 acquisition of Spectrum Plastics Group, which uses proprietary processes like Projection Micro Stereolithography and Silicone 3D Printing. Proto Labs, which has manufactured over 700 million parts for more than 300,000 customers, launched an AI-enabled manufacturing platform called ProDesk in February 2026 to accelerate prototyping and production. AMETEK produces high-performance metal powders for additive manufacturing and expanded its precision scanning portfolio with the July 2025 acquisition of Faro Technologies. ATI offers end-to-end additive manufacturing capabilities from metal powder to finished parts and recently commissioned a state-of-the-art facility combining design, printing, heat treating, machining, and inspection for aerospace, defense, and space applications.