IPG Photonics (NASDAQ:IPGP) Releases Quarterly Earnings Results, Beats Estimates By $0.21 EPS

IPG Photonics (NASDAQ:IPGP) posted its quarterly earnings results on Thursday. The semiconductor company reported $0.46 earnings per share for the quarter, topping analysts’ consensus estimates of $0.25 by $0.21, FiscalAI reports. IPG Photonics had a net margin of 2.66% and a return on equity of 2.35%. The business had revenue of $274.47 million for the quarter, compared to the consensus estimate of $249.58 million. During the same period in the prior year, the business posted $0.18 earnings per share. IPG Photonics’s revenue for the quarter was up 17.2% compared to the same quarter last year. IPG Photonics updated its Q1 2026 guidance to 0.100-0.400 EPS.

Here are the key takeaways from IPG Photonics’ conference call:

• Q4 revenue topped expectations, rising 17% year-over-year and 9% sequentially, and full-year revenue grew 3% (the first annual increase since 2021); management cites book-to-bill above one as evidence of improving demand and momentum into 2026.
• The company is successfully diversifying beyond materials processing — medical sales grew 21% to a record level (new FDA-cleared products shipping) and IPG launched the Crossbow directed-energy system and opened an IPG Defense facility in Huntsville, expanding addressable markets.
• Margins were pressured by planned inventory moves and a persistent tariff headwind (~150–200 bps), producing adjusted gross margin near the midpoint of guidance and under-absorption of fixed costs that management expects to continue partially into 2026.
• Strong liquidity and shareholder returns — the company finished Q4 with $839 million cash, no debt, repurchased $53M of stock in 2025 and authorized a new $100M buyback while guiding higher CapEx (~$90–$100M) due to timing shifts into 2026.

IPG Photonics Stock Performance

Shares of IPG Photonics stock traded up $36.76 during trading on Thursday, reaching $147.66. The company’s stock had a trading volume of 1,712,877 shares, compared to its average volume of 506,355. IPG Photonics has a one year low of $48.59 and a one year high of $151.00. The firm has a market cap of $6.22 billion, a price-to-earnings ratio of 242.33, a price-to-earnings-growth ratio of 13.99 and a beta of 1.03. The business’s fifty day moving average price is $83.61 and its 200-day moving average price is $82.19.

Insiders Place Their Bets

In other news, Director Eric Meurice sold 750 shares of the company’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $95.00, for a total transaction of $71,250.00. Following the completion of the transaction, the director owned 22,803 shares of the company’s stock, valued at approximately $2,166,285. This represents a 3.18% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Valentin Gapontsev Trust I sold 7,952 shares of IPG Photonics stock in a transaction that occurred on Thursday, January 15th. The stock was sold at an average price of $80.10, for a total value of $636,955.20. Following the sale, the insider directly owned 6,793,099 shares in the company, valued at $544,127,229.90. The trade was a 0.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 470,913 shares of company stock valued at $36,233,025 over the last ninety days. 39.50% of the stock is owned by insiders.

Hedge Funds Weigh In On IPG Photonics

A number of hedge funds have recently made changes to their positions in the business. Captrust Financial Advisors increased its stake in IPG Photonics by 27.3% in the second quarter. Captrust Financial Advisors now owns 9,280 shares of the semiconductor company’s stock valued at $637,000 after acquiring an additional 1,988 shares during the period. Orion Porfolio Solutions LLC grew its stake in shares of IPG Photonics by 2.8% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 7,922 shares of the semiconductor company’s stock valued at $544,000 after purchasing an additional 215 shares during the period. Sei Investments Co. grew its stake in shares of IPG Photonics by 39.2% in the 2nd quarter. Sei Investments Co. now owns 22,693 shares of the semiconductor company’s stock valued at $1,558,000 after purchasing an additional 6,391 shares during the period. Cerity Partners LLC raised its holdings in shares of IPG Photonics by 20.2% in the 2nd quarter. Cerity Partners LLC now owns 9,979 shares of the semiconductor company’s stock worth $685,000 after buying an additional 1,680 shares in the last quarter. Finally, Two Sigma Securities LLC bought a new position in shares of IPG Photonics during the 2nd quarter worth approximately $410,000. Institutional investors and hedge funds own 93.79% of the company’s stock.

Key Stories Impacting IPG Photonics

Here are the key news stories impacting IPG Photonics this week:

• Positive Sentiment: Q4 earnings beat — IPG reported $0.46 EPS vs. street ~$0.25 and revenue of $274.5M (up ~17% YoY), which materially beat expectations and underpins the rally. IPG Photonics Q4 2025 Earnings Call Transcript
• Positive Sentiment: Revenue and margins showed improvement vs. prior year, reinforcing growth narrative for laser/industrial demand. Zacks: Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Short-covering and momentum — the stock hit a 52-week high after the quarter as elevated short interest and heavy volume accelerated the move. Benzinga: Stock Hits 52-Week High
• Positive Sentiment: Analyst/market commentary framing IPG as a momentum leader in the industrial/semiconductor-connected space, which can attract flows from momentum-focused funds. Zacks: Momentum Stock Piece
• Neutral Sentiment: Company provided Q1 2026 guidance of $0.10–$0.40 EPS and revenue $235M–$265M (consensus ~ $0.27 EPS, $243.5M revenue) — a wide range that leaves near-term outcomes uncertain but not alarming. FinanzNachrichten: Q4 Financial Results
• Neutral Sentiment: Company released detailed materials (press release, slide deck, call transcript) — useful for investors digging into order trends and regional demand but not an immediate catalyst beyond the beat. IPG Press Release / Slides
• Negative Sentiment: Valuation now looks extended (trailing P/E and rapid run-up), which raises downside risk if execution or end-market demand softens. MarketBeat: IPG Photonics Overview
• Negative Sentiment: Guidance range includes the possibility of a quarter below consensus; if next-quarter results skew low, the recent rally could reverse sharply. FinanzNachrichten: Q4 Financial Results

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the stock. Zacks Research upgraded shares of IPG Photonics from a “hold” rating to a “strong-buy” rating in a research note on Thursday, January 15th. Roth Mkm raised their price target on shares of IPG Photonics from $105.00 to $110.00 and gave the company a “buy” rating in a report on Tuesday, February 3rd. Benchmark reiterated a “hold” rating on shares of IPG Photonics in a report on Wednesday, December 10th. Stifel Nicolaus set a $92.00 target price on shares of IPG Photonics in a research report on Tuesday, November 4th. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of IPG Photonics in a research report on Monday, December 29th. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, IPG Photonics has a consensus rating of “Moderate Buy” and a consensus price target of $91.67.

IPG Photonics Company Profile

IPG Photonics Corporation is a global leader in the design and manufacture of high-performance fiber lasers and amplifiers used in industrial, medical, scientific, and telecommunications applications. The company’s core products include ytterbium and erbium fiber lasers, diode lasers, and fiber amplifiers that deliver high power and efficiency for precision cutting, welding, marking, and engraving. IPG’s systems are engineered to optimize process speed, reliability, and energy consumption, making them a preferred choice for advanced manufacturing environments.

In addition to stand-alone laser sources, IPG offers turnkey laser systems and integrated solutions tailored to sectors such as automotive, electronics, aerospace, additive manufacturing, and life sciences.