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IPG Photonics
(NASDAQ:IPGP)
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Rating:58Neutral
Price Target:
$84.00
▲(17.11% Upside)
Action:Reiterated
Date:10/08/26
IPGP’s score is driven primarily by a very strong balance sheet and a notably positive earnings call with improving growth and bookings. Offsetting these strengths are compressed profitability and weaker recent free-cash-flow efficiency, a longer-term technical downtrend despite near-term stabilization, and a demanding valuation (P/E 122.56) with no dividend yield provided.
Positive Factors
Sustained revenue growth and bookings
Three consecutive quarters of double-digit revenue growth, together with book-to-bill above one, indicate improving demand rather than an isolated quarterly gain. Sustained bookings support production visibility, reinforce customer adoption, and provide a foundation for continued growth across industrial applications.
Negative Factors
Compressed profitability
Although IPG has returned to modest profitability, its current earnings power remains well below earlier-cycle levels. Low operating and net margins leave less room to absorb cost increases or demand softness and make durable returns dependent on successful margin-recovery initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue growth and bookings
Three consecutive quarters of double-digit revenue growth, together with book-to-bill above one, indicate improving demand rather than an isolated quarterly gain. Sustained bookings support production visibility, reinforce customer adoption, and provide a foundation for continued growth across industrial applications.
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 FlyIPG Photonics (IPGP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.02B
Dividend Yield0.99%
Average Volume (3M)387.62K
Price to Earnings (P/E)107.6
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. Volume361,537
30 Day Avg. Volume387,615
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 Cap1.38
Enterprise Value/Revenue3.91
Enterprise Value/Gross Profit10.19
Enterprise Value/Ebitda39.11
Forecast
1Y Price Target
$133.50Price Target Upside86.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.1
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 primarily makes money by selling fiber-laser-based products and related systems to equipment manufacturers and end users that incorporate these lasers into manufacturing workflows. The core revenue stream is the sale of laser sources...
IPG Photonics Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call was strongly positive overall. The company reported a third consecutive quarter of double-digit revenue growth, stronger bookings with book-to-bill above one, improved adjusted profitability, and progress in industrial, semiconductor, medical, additive manufacturing, and defense initiatives. Key challenges included year-over-year declines in advanced solutions and North America, manufacturing absorption below target, tariff impacts, and continued pressure in parts of Europe, but these were outweighed by the company’s growth results, strategic wins, balance-sheet strength, and constructive outlook.Positive Updates
Third Consecutive Quarter of Double-Digit Revenue Growth
Second-quarter revenue was $279 million, up 11% year-over-year and growing sequentially, marking the company’s third consecutive quarter of double-digit year-over-year sales growth. Revenue was above the midpoint of guidance.
Negative Updates
Advanced Solutions Revenue Declined Year-over-Year
Advanced solutions revenue decreased 9% compared with the prior year because growth in semiconductor applications was offset by lower revenue in micromachining and defense.
Read all updates
Q2-2026 Updates
Positive
Negative
Third Consecutive Quarter of Double-Digit Revenue Growth
Second-quarter revenue was $279 million, up 11% year-over-year and growing sequentially, marking the company’s third consecutive quarter of double-digit year-over-year sales growth. Revenue was above the midpoint of guidance.
Read all positive updates
Company Guidance
For the third quarter of 2026, IPG expects revenue of $265 million-$295 million, adjusted gross margin between 37.5% and 40.5%, factoring in the ongoing impact from tariffs of about 150 basis points, adjusted operating expenses in the range of $92 million-$95 million, adjusted earnings per diluted share in the range of $0.30-$0.60 with approximately 43 million diluted common shares outstanding, and adjusted EBITDA between $35 million and $51 million; CapEx outlook remains $90 million-$100 million for this year, underlying CapEx is running at about 5% of revenue, and IPG expects to maintain this level going forward, while the Lumibird Medical acquisition is expected to close in the fourth quarter of 2026, medical shipments are expected to increase in the second half of the year, the medical business is expected to more than double over the next two to three years, and the company expects hundreds of millions of dollars in revenue over the longer term from an initiative addressing over $5 billion of TAM.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 | 106.87M | 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
71.73
Price Trends
78.54
Negative
91.94
Negative
101.41
Negative
Market Momentum
-1.51
Positive
32.47
Neutral
13.32
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 71.73 is below the 20-day moving average (MA) of 78.25, below the 50-day MA of 78.54, and below the 200-day MA of 101.41, indicating a bearish trend. The MACD of -1.51 indicates Positive momentum. The RSI at 32.47 is Neutral, neither overbought nor oversold. The STOCH value of 13.32 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.61B | 111.59 | 2.62% | ― | -2.52% | -64.30% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $3.02B | 107.59 | 1.30% | 0.99% | 13.04% | ― | |
56 Neutral | $1.94B | -135.06 | -3.80% | ― | 43.24% | 74.67% | |
54 Neutral | $3.38B | 2,153.56 | 1.00% | ― | 45.81% | ― | |
46 Neutral | $939.71M | -7.61 | -19.59% | ― | 266.06% | 19.55% | |
46 Neutral | $699.15M | -50.15 | -210.69% | ― | 56.22% | 93.61% |
* Technology Sector Average
IPGP
IPG Photonics
71.01
-16.19
-18.57%
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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.