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IPG Photonics Corporation
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$3.1B
Market Cap
98.1
P/E
15.64
PEG
0.8%
ROCE
1.5%
ROE
0.00
D/E
1.3%
OPM
-54.0%
% from 52W High
23
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for IPGP including FX impact
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📈 Price History
Ratio Health
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By Category
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About

IPG Photonics Corporation develops, manufactures, and sells fiber lasers, fiber amplifiers, diode lasers, and laser-based systems used in materials processing, medical, and advanced applications.

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📈 Growth Pattern
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⭐ Superinvestors Holding IPGP
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 85.7K $9.8M 0.02% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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🎙 Management Tone Confident Specific ~ Volatile 4 quarters Full tone analysis in Intelligence →
📊 MIXED IPG Photonics Q1 2026 revenue $265M, up 17% YoY, bookings strong
Revenue & Profitability
Q1 2026 total revenue was $265 million, up 17% year-over-year. GAAP gross margin was 37.5%, adjusted gross margin 37.8%. GAAP net income was $2 million ($0.04 diluted EPS); adjusted net income was $13 million ($0.29 adjusted EPS). GAAP operating loss was $8 million, adjusted operating income $9 million. Cash, equivalents, and short-term investments totaled $813 million, with no debt.
Outlook
Management is cautiously optimistic, noting robust demand despite macroeconomic uncertainty. Book-to-bill was firmly above 1 for the second consecutive quarter. Q2 2026 revenue guidance is $260 million-$290 million. Tougher year-over-year comparisons are expected in the second half of 2026, and tariffs are impacting margins by approximately 150 basis points.
Growth Drivers
Growth is driven by battery manufacturing (EV and stationary storage for data centers), medical (strong backlog and new customer), semiconductor (lithography, metrology, inspection), and welding/cutting applications. Regionally, North America revenue grew 27% year-over-year, Asia 14%, Europe 4%.
Balance Sheet & CapEx
Capital expenditures in Q1 2026 were $16 million. The full-year 2026 CapEx budget is $90 million-$100 million, largely due to timing of investments in a major fiber manufacturing facility in Germany. Underlying CapEx is running at about 5% of revenue.
Margins
Adjusted gross margin was 37.8% in Q1, within guidance of 37%-40%. Management targets improvement through cost reduction, pricing initiatives, and better fixed-cost absorption. Tariffs are a 150-basis-point headwind. The medium-term goal remains mid-40% gross margins, but underabsorbed expenses remain above target.
Key Risks
Management flagged tariff impacts (150 bps on gross margin) and the fluid tariff regime as ongoing risks. Underabsorbed manufacturing costs remain elevated. Geopolitical developments are being monitored, but no direct impact from Middle East conflicts on demand has been seen. Tougher year-over-year comparisons in the second half of 2026 were also noted.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-04
Revenue grew 11% year-over-year to $279 million, with strong industrial and advanced solutions demand and bookings keeping book-to-bill above one. Adjusted gross margin and EPS exceeded guidance, and the Lumibird Medical acquisition is set to expand high-margin medical revenue.
Q1 2026 Q1 2026 2026-05-05
Revenue grew 17% year-over-year, led by industrial solutions and strong demand in battery and medical markets. Bookings and backlog remain robust, with Q2 guidance reflecting continued momentum despite tariff and macroeconomic headwinds.
Q4 2025 Q4 2025 2026-02-12
Q4 revenue grew 17% year-over-year, driven by strong performance in medical, battery, and advanced applications, with margins impacted by tariffs. Book-to-bill above one signals improving demand, and 2026 guidance reflects continued investment in growth and innovation.
Q3 2025 Q3 2025 2025-11-04
Revenue reached $251M, up 8% year-over-year, with strong growth in welding, medical, and defense. Gross margin improved, and new products in urology and directed energy are set to drive future growth. Q4 guidance reflects cautious optimism amid ongoing tariff and demand uncertainties.
Q2 2025 Q2 2025 2025-08-05
Second quarter revenue rose 10% sequentially and 2% year-over-year, with strong performance in advanced applications, medical, and micro machining. Book-to-bill was one across all regions, and guidance for Q3 points to continued cautious optimism amid tariff and macro uncertainties.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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