Proto Labs (PRLB) Stock Forecast & Price Target

Proto Labs Inc. demonstrated a robust financial performance, with Non-GAAP EPS rising by approximately 10% year-over-year to $0.41, significantly surpassing both Cantor estimates and the consensus estimate. Additionally, the company's revenue metrics were strong, as Proto Labs' Network revenue grew by 18.6% year-over-year to $29.3 million, complemented by a 4.8% increase in digital factory revenue, which reached $105.8 million. The notable growth in customer engagement, with nearly 45% more clients utilizing the combined factory and network offerings, alongside an 11% year-over-year increase in revenue per customer, underscores a positive outlook for the company.

Proto Labs Inc. is facing short-term margin pressures due to changes in tariff policy, which have contributed to a slight decline in gross margins to 45.3% in 3Q25, despite being the highest in the year. For the full year 2025, projected revenues are expected to reach $526.8 million, representing only a 5% increase from 2024, while non-GAAP earnings are forecasted to decline slightly to $1.58, below the previous year's earnings of $1.64. Although management has provided guidance indicating potential revenue stability in 4Q25, the overall financial outlook remains cautious amid ongoing external pressures affecting profitability.