Ipg Photonics (IPGP)
NASDAQ:IPGP
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IPG Photonics
(NASDAQ:IPGP)
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Rating:57Neutral
Price Target:
$108.00
▼(-13.61% Downside)
Action:Reiterated
Date:05/09/26
The score is held back mainly by weak cash-flow quality (negative recent free cash flow), compressed profitability versus prior peak years, and bearish-to-neutral technicals, with valuation also a significant negative due to the extremely high P/E. Offsetting these are a very strong balance sheet (no debt) and a generally positive earnings call with improving demand indicators (book-to-bill >1) and guidance that supports a stabilization-to-recovery narrative despite tariff and cost headwinds.
Positive Factors
Very strong balance sheet
Large cash reserves and near-zero leverage provide durable financial flexibility for multi-quarter investments, R&D, and capex. This liquidity cushions the business against cyclical industrial demand swings, funds strategic product development, and reduces refinancing risk over the next 2–6 months.
Negative Factors
Weakened cash conversion
Negative free cash flow despite positive operating cash flow indicates higher reinvestment needs and timing pressures. Over 2–6 months this constrains net cash generation, forces careful capital allocation, and could limit the pace of organic expansion or defer shareholder returns if trends persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Very strong balance sheet
Large cash reserves and near-zero leverage provide durable financial flexibility for multi-quarter investments, R&D, and capex. This liquidity cushions the business against cyclical industrial demand swings, funds strategic product development, and reduces refinancing risk over the next 2–6 months.
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
$4.36B
Dividend YieldN/A
Average Volume (3M)559.27K
Price to Earnings (P/E)764.0
Beta (1Y)1.13
Revenue Growth9.29%
EPS GrowthN/A
CountryUS
Employees4,740
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.70
Shares Outstanding42,443,615
10 Day Avg. Volume839,571
30 Day Avg. Volume559,275
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 Cap0.93
Enterprise Value/Revenue3.89
Enterprise Value/Gross Profit10.35
Enterprise Value/Ebitda55.33
Forecast
1Y Price Target
$131.08Price Target Upside4.85% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.34
Revenue Forecast (FY)$1.11B
IPG Photonics Business Overview & Revenue Model
Company Description
IPG Photonics Corporation develops, manufactures, and sells various high-performance fiber lasers, fiber amplifiers, and diode lasers used in various applications primarily in materials processing worldwide. The company's laser products include hy...
How the Company Makes Money
IPG Photonics makes money primarily by selling fiber lasers and laser-based systems used in industrial manufacturing. Its core revenue stream is product sales of fiber lasers (including high-power lasers used for metal cutting and welding and othe...
IPG Photonics Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 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
58
Neutral
Balance Sheet
90
Very Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.04B | 1.00B | 977.13M | 1.29B | 1.43B | 1.46B |
| Gross Profit | 391.15M | 381.46M | 338.15M | 541.70M | 555.41M | 696.40M |
| EBITDA | 73.19M | 111.95M | 75.92M | 301.19M | 321.97M | 449.09M |
| Net Income | 28.92M | 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 | 812.90M | 839.33M | 930.19M | 1.18B | 1.18B | 1.51B |
| Total Debt | 16.31M | 0.00 | 17.96M | 18.26M | 38.05M | 58.13M |
| Total Liabilities | 305.85M | 296.15M | 264.79M | 283.51M | 357.92M | 423.32M |
| Stockholders Equity | 2.12B | 2.13B | 2.02B | 2.42B | 2.39B | 2.75B |
Cash Flow | ||||||
| Free Cash Flow | -13.86M | -3.45M | 149.37M | 185.50M | 102.51M | 266.59M |
| Operating Cash Flow | 56.44M | 75.34M | 247.90M | 295.99M | 212.65M | 389.70M |
| Investing Cash Flow | 104.40M | -265.23M | 208.73M | -237.55M | 296.95M | -416.28M |
| Financing Cash Flow | -60.23M | -54.19M | -339.62M | -236.38M | -514.55M | -125.07M |
IPG Photonics Technical Analysis
Positive
125.02
Price Trends
122.59
Positive
101.72
Positive
91.09
Positive
Market Momentum
1.48
Negative
55.28
Neutral
67.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPGP, the sentiment is Positive. The current price of 125.02 is above the 20-day moving average (MA) of 119.39, above the 50-day MA of 122.59, and above the 200-day MA of 91.09, indicating a bullish trend. The MACD of 1.48 indicates Negative momentum. The RSI at 55.28 is Neutral, neither overbought nor oversold. The STOCH value of 67.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IPGP.
IPG Photonics Risk Analysis
IPG Photonics disclosed 36 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $2.95B | 12.15 | 11.84% | ― | -0.06% | -1.01% | |
75 Outperform | $16.18B | 49.83 | 21.21% | ― | 21.32% | 19.06% | |
74 Outperform | $4.33B | 30.05 | 12.33% | 1.52% | -3.42% | -6.78% | |
68 Neutral | $75.89B | 26.48 | 14.45% | 2.29% | 15.55% | 43.35% | |
64 Neutral | $12.82B | ― | -7.22% | ― | 15.48% | 82.89% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $4.36B | 764.02 | 1.37% | ― | 9.29% | ― |
* Technology Sector Average
IPGP
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IPG Photonics Corporate Events
Business Operations and StrategyFinancial DisclosuresLegal Proceedings
IPG Photonics Posts Strong Q1 Results, Settles Patent Dispute
Positive
May 5, 2026
On May 5, 2026, IPG Photonics reported first-quarter 2026 results showing revenue of $265.5 million, up 17% year over year, driven primarily by a 21% increase in Industrial Solutions sales, which accounted for 86% of total revenue. Advanced Soluti...
Business Operations and StrategyLegal Proceedings
IPG Photonics Faces European Patent Ruling on Lasers
Negative
Mar 16, 2026
On March 16, 2026, IPG Photonics said the Local Division of the Unified Patent Court in Düsseldorf ruled that certain uses and designs of its adjustable mode beam lasers infringe a Trumpf European patent, affecting products sold in Germany, F...
Business Operations and StrategyLegal Proceedings
IPG Photonics Faces European Patent Ruling, Plans Appeal
Negative
Feb 25, 2026
On February 25, 2026, IPG Photonics announced that the Local Division of the Unified Patent Court in Mannheim, Germany ruled certain designs of its adjustable mode beam lasers used in welding and cutting infringed Trumpf’s European Patent 2,...
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.