Digital manufacturing service provider Protolabs (NYSE: PRLB) reported record Q1 2026 revenue of $139.3 million, up 10.4% year-over-year. Net income rose from $3.6 million to $8.1 million, with adjusted EPS of $0.54—a five-year high. Gross margin improved to 46.2%, reflecting ongoing operational efficiency gains. Metal 3D printing emerged as a key growth driver, surging nearly 30% year-over-year, fueled by demand from aerospace, defense, and robotics sectors. European market performance remained weak, prompting strategic restructuring, though sequential quarterly growth of 11% signaled early positive impact. The company's web-based business continues to face challenges in 3D printing, as customer mix shifts toward larger enterprises, with revenue per customer up 20% year-over-year. Protolabs is transitioning from prototyping to volume production, maintaining its full-year 2026 revenue growth outlook of 6% to 8%.