Key insights
- Stratasys's Direct division has been selected for a U.S. Department of Defense program to accelerate 3D-printed parts for military use. This, coupled with an 83% increase in defense additive manufacturing funding and double-digit revenue growth in aerospace and defense, signals positive momentum for the company. The stock's current valuation suggests potential undervaluation, offering a bullish signal for SSYS investors, though broader market impact is limited to specific industrial and defense sectors.
MINNETONOTA, Minn. & REHOVOT, Israel - Stratasys Ltd. (NASDAQ:SSYS) announced today that its Stratasys Direct division has been selected for the U.S. Department of Defense’s Joint Additive Manufacturing Acceptability IV Pilot Parts Program, according to a press release statement.
The program aims to accelerate qualification and deployment of 3D-printed parts across military platforms and systems. Stratasys Direct operates as the contract manufacturing division of Stratasys.
Defense additive manufacturing funding increased 83% to $3.3 billion in fiscal year 2026 compared to fiscal year 2025, according to Department of Defense budget programs cited in the release.
Stratasys Direct currently ships over 100,000 parts annually to the defense industry. The company operates three manufacturing facilities in North America and offers seven industrial 3D printing technologies.
The U.S. Air Force uses Stratasys systems in its C-17 fleet to produce microvanes and replacement components. The company stated these parts help save an estimated $14 million in annual fuel costs and reduce lead times.
"In 2025, Stratasys saw double-digit annual revenue growth from aerospace and defense," said Foster Ferguson, Vice President of the Industrial Business Unit at Stratasys.The positive defense sector momentum comes as the company’s stock trades at $7.64, near its 52-week low of $7.54, despite a market cap of $658 million and revenue of $551 million over the last twelve months. According to InvestingPro analysis, the stock appears undervalued with Fair Value estimates suggesting significant upside potential, placing it among opportunities on the Most Undervalued stocks list.
Stratasys Direct operates under certified quality systems including AS9100 and ISO 9001, with CMMC compliance and ITAR requirements support. The division serves aerospace, defense, medical, and industrial customers.InvestingPro Tips highlight that net income is expected to grow this year, with analysts predicting the company will return to profitability. For deeper insights into Stratasys’ financial health and growth prospects, investors can access the comprehensive Pro Research Report, available for SSYS and over 1,400 US equities.
The company stated it has deployed thousands of systems across aerospace and defense production environments worldwide and serves as a Program of Record for the U.S. Air Force and Naval Air Systems Command.
In other recent news, Stratasys Ltd. reported its fourth-quarter 2025 earnings, showing a steady performance in earnings per share (EPS) but missing revenue expectations. The company achieved an EPS of $0.07, which aligned with analyst forecasts, while its revenue of $140 million was slightly below the expected $142.56 million. In addition, Stratasys announced that its TrueDent resins received CE marking as a Class IIa medical device in Europe. This certification allows the use of 3D-printed dental materials for long-term applications, including intraoral removables, crowns, and bridges.
Analyst firm Craig-Hallum recently adjusted its outlook on Stratasys, lowering the price target from $14 to $12 while maintaining a Buy rating. The firm cited margin pressure and increased operating expenses due to foreign exchange and tariff challenges as factors influencing this decision. These elements are expected to counterbalance the projected revenue growth in 2026. These developments reflect the ongoing adjustments and strategic directions for Stratasys in the current market environment.
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