IPGP Nasdaq Russell 1000 Earnings call
IPG Photonics (IPGP) · Q1 2026 results and valuation
Share price: $70.81 · 2026-11-11
Results Q1 2026 vs Q4 2025 · previous quarter · published 5 May 2026 and 12 Feb 2026
Net income down 88.1% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−88.1%
Net income vs Q4 2025
Outlook given
Net income 1.6M vs 13.3M
Revenue −3.3%
Against the same quarter last year (Q1 2025) it is −57.8%, so it is not just seasonal.
2 · How management spoke
Upbeat
More upbeat than 78% of company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Figure
Advanced Solutions serves medical, defense, micromachining, and semiconductor manufacturing markets that collectively present strong growth…
Valuation
Is IPG Photonics undervalued?
Reverse DCF. Average free cash flow of the last three fiscal years (the last year was negative) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −11.1% growth a year (3-year revenue growth), the model's fair value is $34.33 a share — the stock trades 106% above it. Today's price assumes 7.3% growth a year.
Current price
$70.81
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+7.3% for 10 yrs
Fair value / share
$34.33
Buy below
$25.75
Price vs fair value
Overvalued 106%
Price vs buy-below price
Overvalued 175%
Read between the lines
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Guidance
IPGP expects tariff impacts to persist in 2026 and plans to address them through cost reduction and pricing initiatives.
Source quote
“We expect the impact from tariffs to persist in 2026 and continue to work on ways to offset their impact, including cost reduction and pricing initiatives.”
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Guidance
IPGP expects to maintain underlying CapEx at approximately 5% of revenue moving forward, excluding the German investment.
Source quote
“Excluding the German investment, underlying CapEx is running at about 5% of revenue and we expect to maintain this level going forward.”
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Fading
Revenue increased 17% year over year and 9% sequentially as industrial demand stabilized and the company focused on growth initiatives in medical and advanced applications.
Source quote
“Revenue growth was driven by further stabilization in industrial demand, new opportunities, and a disciplined focus on our growth initiatives. Fourth quarter revenue came in above our expectations, increasing 17% year over year and 9% sequentially. This focus led to strong results in medical and advanced applications this quarter.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q1 2026. Ring: Q4 2025.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“We estimate adjusted operating expenses in the range of $92 million to $95 million in the second quarter and anticipate that these expenses will increase moderately during the year to...”
“We maintained a disciplined focus on our growth initiatives across all of our markets, delivering solid first quarter results and building momentum for future growth.”
“Advanced Solutions serves markets such as medical, defense, micromachining, semiconductor manufacturing and others that present strong growth opportunities and collectively represent a $5 billion TAM.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-03-31)
| Metric | Q1 2026period end 2026-03-31 | Q4 2025period end 2025-12-31 | Change | Q1 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 265.5M | 274.5M | −3.3% | 227.8M | +16.6% |
| Gross profit | 99.5M | 99.1M | +0.4% | 89.8M | +10.8% |
| Operating income | -7.7M | 3.3M | Turned loss | 1.8M | Turned loss |
| Net income | 1.6M | 13.3M | −88.1% | 3.8M | −57.8% |
| EPS | 0.04 | 0.31 | −87.1% | 0.09 | −55.6% |
| P/E today 128.6 | 168.5 | 98.1 | +70.4 | 12-mo loss | — |
Topics
Most discussed now
- In the first quarter, Industrial Solutions revenue accounted for 86% of total sales increasing 21% year-over-year as IPG Photonics' design…
- This reporting combines applications into 2 categories: Industrial Solutions and Advanced Solutions.
- North American revenue increased 27% compared with last year, driven by growth in welding, cutting, additive manufacturing and medical…
- Advanced Solutions revenue decreased 5% compared with last year as growth in medical and semiconductor was offset by lower revenue...
- This foundation gives it confidence in IPG Photonics' ability to achieve above market growth and deliver lasting value for its customers...
Faded since Q4 2025
- Fading IPG Photonics also saw strong sequential and year over year growth in semiconductor applications, which drove higher revenue in advanced…
- Fading The industrial, IPG Photonics is continuing to invest in those core markets, cutting as well as, if you look at areas...
- Fading IPG Photonics also sees the opportunity to continue growing medical sales through share gain and new product innovation coupled with an...
- Fading It encompasses the areas that I told you, including areas like foil cutting and specialized welding, cleaning.
Latest announcements
Official filings, newest first.
- Material agreement · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; Regulation FD disclosure · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations; Other events · SEC 8-K
- Other events · SEC 8-K
- Other events · SEC 8-K
- Results of operations · SEC 8-K