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IPG Photonics
(NASDAQ:IPGP)
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Rating:59Neutral
Price Target:
$85.00
▼(-7.31% Downside)
Action:Reiterated
Date:08/19/26
IPGP’s score is anchored by a very strong, low-debt balance sheet and improving demand signals (book-to-bill >1 and revenue growth), plus a strategically positive medical M&A move. These are tempered by still-muted profitability and weaker recent free-cash-flow performance, while the stock’s technical trend is negative and valuation is demanding with a very high P/E.
Positive Factors
Demand and Revenue Growth
Double-digit growth combined with book-to-bill above one indicates broad customer demand and improving order visibility. This supports continued revenue expansion as industrial, battery, semiconductor, and medical applications adopt IPG solutions.
Negative Factors
Compressed Profitability
Muted operating and net margins show that revenue recovery has not yet restored prior-cycle earnings power. Lower profitability reduces internal funding capacity and leaves results more sensitive to volume, mix, and manufacturing utilization.
Read all positive and negative factors
Positive Factors
Negative Factors
Demand and Revenue Growth
Double-digit growth combined with book-to-bill above one indicates broad customer demand and improving order visibility. This supports continued revenue expansion as industrial, battery, semiconductor, and medical applications adopt IPG solutions.
Read all positive factors
IPG Photonics Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales by region, showing exposure to key markets like China, North America, and Europe. Geographic mix matters for growth prospects and risks: heavy reliance on a single region can amplify impacts from local downturns, trade measures, or currency swings, while diversification points to broader market reach and resilience.
Breaks down sales by region, showing exposure to key markets like China, North America, and Europe. Geographic mix matters for growth prospects and risks: heavy reliance on a single region can amplify impacts from local downturns, trade measures, or currency swings, while diversification points to broader market reach and resilience.
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The Fly
The FlyIPG Photonics (IPGP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.75B
Dividend YieldN/A
Average Volume (3M)366.06K
Price to Earnings (P/E)133.5
Beta (1Y)1.16
Revenue Growth13.04%
EPS GrowthN/A
CountryUS
Employees4,840
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.66
Shares Outstanding42,534,540
10 Day Avg. Volume332,450
30 Day Avg. Volume366,063
Financial Highlights & Ratios
PEG Ratio-0.83
Price to Book (P/B)1.43
Price to Sales (P/S)3.04
P/FCF Ratio-883.02
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$133.50Price Target Upside45.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.12
Revenue Forecast (FY)$1.12B
IPG Photonics Business Overview & Revenue Model
Company Description
Established in 1990 and headquartered in Oxford, Massachusetts, IPG Photonics Corporation is a leading global developer and manufacturer of high-performance fiber, diode, and hybrid fiber-solid state lasers, along with fiber amplifiers. These adva...
How the Company Makes Money
IPG Photonics makes money mainly by selling laser sources and related photonics products to industrial customers involved in materials processing. Its primary revenue stream comes from industrial fiber lasers (including high-power lasers) used for...
IPG Photonics Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call highlights solid demand momentum and strong year-over-year revenue growth (+17% to $265M), marked improvements in industrial solutions (+21% YoY) and regional strength (North America +27% YoY, Asia +14% YoY). Adjusted profitability metrics outperformed guidance midpoints (adjusted EPS $0.29, adjusted EBITDA $35M), the balance sheet remains strong with $813M cash and no debt, and strategic wins (e.g., $10M Lockheed Crossbow order) and traction in medical and semiconductor markets underline the growth story. Key headwinds include a GAAP operating loss impacted by a $13.5M one-time settlement, persistent tariff pressure (~150 bps headwind to gross margin), underabsorbed costs and a moderate OpEx increase planned to fund growth, and some sequential weakness in Advanced Solutions and certain regions. On balance, positive operational momentum, strong bookings/backlog and a healthy balance sheet outweigh the near-term margin and timing challenges.Positive Updates
Recordable Revenue Growth
Total revenue of $265 million, up 17% year-over-year, marking the second consecutive quarter of double-digit sales growth. Foreign exchange benefited revenue by ~4% YoY.
Negative Updates
Advanced Solutions Softness
Advanced Solutions represented 14% of revenue and declined 5% year-over-year and 13% quarter-over-quarter driven by lower micromachining (cyclical solar demand) and a sequential pullback in medical after an exceptionally strong Q4 2025.
Read all updates
Q1-2026 Updates
Positive
Negative
Recordable Revenue Growth
Total revenue of $265 million, up 17% year-over-year, marking the second consecutive quarter of double-digit sales growth. Foreign exchange benefited revenue by ~4% YoY.
Read all positive updates
Company Guidance
IPG guided Q2 revenue of $260–$290 million, adjusted gross margin of 37%–40% (including an ongoing tariff headwind of ~150 basis points), adjusted operating expenses of $92–$95 million, adjusted EPS of $0.25–$0.55 (with roughly 43 million diluted shares outstanding), and adjusted EBITDA of $32–$48 million; management also noted book‑to‑bill >1 for the second consecutive quarter, said tariffs are expected to persist in 2026, confirmed a FY CapEx budget of $90–$100 million (underlying CapEx ≈5% of revenue excluding the German facility), and expects shipments of the $10 million Crossbow follow‑on order to begin in Q2 and be delivered over multiple quarters.IPG Photonics Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
88
Very Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.07B | 1.00B | 977.13M | 1.29B | 1.43B | 1.46B |
| Gross Profit | 410.10M | 381.46M | 338.15M | 541.70M | 555.41M | 696.40M |
| EBITDA | 122.76M | 111.95M | 75.92M | 301.19M | 321.97M | 449.09M |
| Net Income | 27.56M | 31.10M | -181.53M | 218.88M | 109.91M | 278.42M |
Balance Sheet | ||||||
| Total Assets | 2.42B | 2.42B | 2.29B | 2.70B | 2.74B | 3.17B |
| Cash, Cash Equivalents and Short-Term Investments | 871.32M | 839.33M | 930.19M | 1.18B | 1.18B | 1.51B |
| Total Debt | 16.25M | 17.25M | 17.96M | 18.26M | 38.05M | 58.13M |
| Total Liabilities | 297.39M | 296.15M | 264.79M | 283.51M | 357.92M | 423.32M |
| Stockholders Equity | 2.13B | 2.13B | 2.02B | 2.42B | 2.39B | 2.75B |
Cash Flow | ||||||
| Free Cash Flow | 20.80M | -3.45M | 149.37M | 185.50M | 102.51M | 266.59M |
| Operating Cash Flow | 96.44M | 75.34M | 247.90M | 295.99M | 212.65M | 389.70M |
| Investing Cash Flow | -27.05M | -265.23M | 208.73M | -237.55M | 296.95M | -416.28M |
| Financing Cash Flow | -30.49M | -54.19M | -339.62M | -236.38M | -514.55M | -125.07M |
IPG Photonics Technical Analysis
Negative
91.70
Price Trends
100.34
Negative
108.03
Negative
102.00
Negative
Market Momentum
-4.51
Negative
38.82
Neutral
16.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPGP, the sentiment is Negative. The current price of 91.7 is above the 20-day moving average (MA) of 87.85, below the 50-day MA of 100.34, and below the 200-day MA of 102.00, indicating a bearish trend. The MACD of -4.51 indicates Negative momentum. The RSI at 38.82 is Neutral, neither overbought nor oversold. The STOCH value of 16.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IPGP.
IPG Photonics Risk Analysis
IPG Photonics disclosed 37 risk factors in its most recent earnings report. IPG Photonics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
IPG Photonics Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.98B | 20.88 | 11.35% | 2.40% | -8.32% | -19.36% | |
68 Neutral | $13.37B | 48.61 | 20.25% | ― | 16.16% | 8.14% | |
62 Neutral | $84.75B | 44.21 | 17.32% | 1.13% | 18.30% | 82.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $14.37B | -413.90 | -5.93% | ― | 14.22% | 81.01% | |
59 Neutral | $3.75B | 133.48 | 1.30% | ― | 13.04% | ― | |
57 Neutral | $1.98B | 12.31 | 13.39% | ― | 0.52% | 41.86% |
* Technology Sector Average
IPGP
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4.24
5.50%
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IPG Photonics Corporate Events
Business Operations and StrategyM&A Transactions
IPG Photonics to Acquire Lumibird Medical Laser Business
Positive
Jul 17, 2026
On July 16, 2026, IPG Photonics announced a binding offer to acquire Lumibird Medical for €300 million on a cash-free, debt-free basis, with up to €50 million in additional contingent earnout tied to 2026 and 2027 performance. The deal...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.