IPG Photonics (IPF) Q3 2026 Earnings Report

The call was strongly positive overall. Revenue increased 15% year over year for the fourth consecutive quarter of double-digit growth, Advanced Solutions grew 33%, semiconductor revenue more than doubled, bookings remained solid, margins exceeded guidance, and the company reported a strong cash position with no debt. The main challenges were moderation in China battery capacity additions, a year-over-year decline in European revenue, lumpy defense timing, limited cutting growth, inflationary pressures, and the absence of tariff-refund benefits in fourth-quarter guidance.

For the fourth quarter of 26, IPG expects revenue of $265 million to $295 million, adjusted gross margin to be between 37% to 40%, adjusted operating expenses in the range of $91 million to $94 million, adjusted earnings per diluted share in the range of $0.30 to $0.60 with approximately 43 million diluted common shares outstanding, and adjusted EBITDA between $33 million and $50 million; this guidance does not assume any contribution from the acquisition of Lumibird Medical. The company expects operating expenses to increase modestly going forward, expects CapEx excluding the German investment to be at about 5% of revenue going forward, sees medical doubling over the next 2 to 3 years, expects Lumibird Medical to be accretive in 2027, in that first year, and expects to reach a 39% range for gross margin with several 100 basis points of gain and more meaningful gains in gross margin in 2027.