3D printing company 3D Systems (NYSE: DDD) reported revenue ahead of Wall Street’s expectations in Q1 CY2026, with sales up 1.1% year on year to $95.54 million. Its non-GAAP loss of $0.01 per share was 87.9% above analysts’ consensus estimates.

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StockStory’s Take

3D Systems delivered a first quarter that outpaced Wall Street’s expectations, with revenue growth driven by the company’s strategic investments in research and development and a revitalized product portfolio. Management emphasized that double-digit growth across printer and material sales, as well as robust demand in healthcare and aerospace, were key to the quarter’s improvement. CEO Jeffrey Graves credited the company’s “completely refreshed portfolio of new products, spanning from direct metal printing systems to the five major polymer printing platforms,” as the foundation for renewed momentum. The team also highlighted strong contributions from medical parts manufacturing and the successful U.S. and EU launches of its NextDent 300 denture printing system.

Looking ahead, management’s guidance is shaped by continued strength in healthcare and aerospace, alongside an emphasis on disciplined cost management as new products gain traction. CEO Jeffrey Graves noted, “Acceptance of additive manufacturing is accelerating, and we’re well positioned to capitalize on it.” While the company expects healthcare to remain a stable source of growth due to high-impact, non-optional procedures, leaders flagged potential seasonality in dental and medical device demand during the summer months. CFO Phyllis Nordstrom underscored that product mix and ongoing cost controls will be essential for achieving the company’s goal of breakeven adjusted EBITDA for the year, even as global logistics and geopolitical volatility persist as headwinds.

Key Insights from Management’s Remarks

Management attributed the quarter’s outperformance to higher adoption of new product platforms and expansion within high-reliability markets, particularly in healthcare and aerospace, along with effective cost reduction initiatives.

• Healthcare expansion accelerates: Double-digit growth in medical parts manufacturing and printer sales was supported by increasing demand for titanium and cobalt chrome implants, as well as the expansion of surgical planning services. The company’s ability to reduce turnaround times for custom implants, including for trauma and oncology cases, broadened its addressable market.

• Dental momentum builds: The NextDent 300 denture printer launch drove a significant uptick in dental material sales following U.S. regulatory approval and the resolution of trademark issues for the Vertex brand. Management cited a major U.S. dental laboratory tripling its production capacity with NextDent 300 systems and noted early EU regulatory approval as an important milestone.

• Aerospace & Defense drives industrial growth: The segment saw over 20% year-over-year growth, fueled by demand for direct metal printing (DMP) systems and high-precision polymer printers used in satellite, propulsion, and defense applications. CEO Graves described rising adoption of 3D printing for advanced aerospace materials as “broad across many markets in that sector.”

• Cost efficiency initiatives deliver: The company completed significant cost reduction programs, totaling over $55 million in annualized savings, which contributed to improved margins and lower non-GAAP operating expenses. Management expects these efficiency programs to conclude by the end of the next quarter.

• Production capacity expansion: 3D Systems is adding 80,000 square feet to its Littleton, Colorado facility to support growing demand for aerospace and defense components. The new space, set to open by late summer, is expected to allow for additional growth in high-value industrial metal parts manufacturing.

Drivers of Future Performance

Management expects future performance to be shaped by new product adoption, stable healthcare demand, and cost discipline, while remaining cautious about macroeconomic and geopolitical risks.

• Healthcare and dental as growth pillars: The company anticipates continued double-digit growth in its Med Tech and Dental businesses, driven by expanded applications for personalized implants, regulatory approvals in new geographies, and increasing adoption of digital dental workflows. Management believes healthcare demand will be less cyclical, though dental volume may show seasonality.

• Aerospace & defense market penetration: 3D Systems foresees strong momentum in aerospace and defense, supported by the rollout of its latest DMP and SLA printing systems and the expansion of its manufacturing facility. The company expects over 20% growth in this segment, citing rising demand for high-performance, custom metal components.

• Cost management and margin stabilization: Management plans to maintain a lean operating cost base, having largely completed its cost reduction initiatives. The transition to normalized R&D spending and targeting product mix improvements are expected to support breakeven or positive adjusted EBITDA over the coming year, though logistics disruptions and global volatility remain risks.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) the ramp-up and order backlog for the NextDent 300 denture systems in both U.S. and EU markets, (2) the operational launch and output of the expanded Littleton, Colorado manufacturing facility dedicated to aerospace and defense, and (3) the stabilization of operating expenses and non-GAAP margin improvement as new product platforms scale. Execution against these milestones will be critical to sustaining momentum.

3D Systems currently trades at $3.01, up from $2.48 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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