Protolabs, a digital manufacturing services provider, announced strong financial results for the second quarter of 2026, ending June 30, 2026. The company reported record quarterly revenue of $149.3 million, marking a 10.6% increase compared to the second quarter of 2025. This performance led Protolabs to raise its full-year 2026 revenue growth guidance from 6%-8% to 8%-10%. The company's President and CEO, Suresh Krishna, highlighted record revenue, double-digit revenue growth, and expanded gross and operating margins, indicating that their strategy is gaining traction with larger customers.
The growth was primarily fueled by key service lines: CNC machining revenue increased by 13.6% to $70.4 million, and injection molding revenue grew by 12.9% to $53.6 million. These two segments accounted for approximately 83% of the total quarterly revenue. Demand from data centers and the aerospace and defense sectors specifically drove the growth in injection molding. In contrast, 3D printing revenue saw a decline of 2.6% to $20.7 million, making it the only service line to contract. Sheet metal fabrication revenue rose by 3.5% to $4.5 million.
Financial metrics beyond revenue also showed significant improvement. GAAP earnings per share rose to $0.37 from $0.18 in Q2 2025, while non-GAAP earnings per share increased by 45.3% to $0.60 from $0.41. Gross margin expanded, with non-GAAP gross margin reaching 46.8%, up 200 basis points year-over-year. Adjusted EBITDA was $25.1 million, or 16.8% of revenue. The company generated $15.4 million in cash from operations and held $162.9 million in cash and investments with zero debt as of June 30, 2026. For Q3 2026, Protolabs expects revenue between $145.0 million and $153.0 million, and non-GAAP diluted net income per share between $0.56 and $0.64.
