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IPG Photonics
(NASDAQ:IPGP)
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Rating:57Neutral
Price Target:
$122.00
▼(-2.42% 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
Balance Sheet Strength
Substantial cash and virtually no debt provide durable financial flexibility to fund CapEx, R&D, facility buildouts, and absorb demand timing. This strong liquidity cushion reduces solvency risk and supports multi-quarter execution of backlog and strategic initiatives.
Negative Factors
Negative Free Cash Flow
Consecutive recent negative free cash flow indicates cash conversion strains from reinvestment, working capital or timing. Even with strong cash reserves, persistent negative FCF limits capital return optionality and pressures funding for growth without drawing on the balance sheet.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Substantial cash and virtually no debt provide durable financial flexibility to fund CapEx, R&D, facility buildouts, and absorb demand timing. This strong liquidity cushion reduces solvency risk and supports multi-quarter execution of backlog and strategic initiatives.
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
$4.55B
Dividend YieldN/A
Average Volume (3M)536.23K
Price to Earnings (P/E)153.1
Beta (1Y)1.22
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. Volume393,435
30 Day Avg. Volume536,226
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 Cap0.96
Enterprise Value/Revenue4.19
Enterprise Value/Gross Profit11.14
Enterprise Value/Ebitda44.55
Forecast
1Y Price Target
$131.42Price Target Upside5.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.27
Revenue Forecast (FY)$1.11B
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: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 | 97.84M | 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 | 17.25M | 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
Negative
125.02
Price Trends
113.93
Negative
117.79
Negative
99.76
Positive
Market Momentum
-1.15
Positive
44.16
Neutral
19.09
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 125.02 is above the 20-day moving average (MA) of 113.42, above the 50-day MA of 113.93, and above the 200-day MA of 99.76, indicating a neutral trend. The MACD of -1.15 indicates Positive momentum. The RSI at 44.16 is Neutral, neither overbought nor oversold. The STOCH value of 19.09 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 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $4.07B | 19.41 | 12.33% | 1.52% | -3.42% | -6.78% | |
70 Outperform | $1.81B | 11.24 | 13.39% | ― | 0.52% | 41.86% | |
68 Neutral | $13.95B | -401.91 | -5.93% | ― | 14.22% | 81.01% | |
66 Neutral | $15.53B | 59.14 | 21.21% | ― | 21.32% | 19.06% | |
62 Neutral | $86.99B | 58.25 | 14.45% | 2.29% | 15.55% | 43.35% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $4.55B | 153.13 | 1.37% | ― | 9.29% | ― |
* Technology Sector Average
IPGP
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IPG Photonics Corporate Events
Executive/Board ChangesShareholder Meetings
IPG Photonics Shareholders Reelect Board, Debate Executive Pay
Neutral
May 15, 2026
IPG Photonics Corporation reported the results of its May 12, 2026 annual meeting of stockholders, where shareholders elected ten directors to the board, with all nominees receiving strong majority support despite some opposition votes. The board ...
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...
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.