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

IPG Photonics (NASDAQ:IPGP) announced its quarterly earnings data on Thursday. The semiconductor company reported $0.46 earnings per share for the quarter, beating the consensus estimate of $0.25 by $0.21, FiscalAI reports. IPG Photonics had a return on equity of 2.35% and a net margin of 2.66%.The firm had revenue of $274.47 million during the quarter, compared to analyst estimates of $249.58 million. During the same period in the previous year, the company earned $0.18 earnings per share. IPG Photonics’s quarterly revenue was up 17.2% on a year-over-year basis. 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 NASDAQ:IPGP traded up $39.59 during trading hours on Thursday, hitting $150.49. The stock had a trading volume of 1,731,692 shares, compared to its average volume of 506,355. The stock’s fifty day simple moving average is $83.61 and its 200 day simple moving average is $82.19. The firm has a market capitalization of $6.34 billion, a price-to-earnings ratio of 246.13, a PEG ratio of 13.99 and a beta of 1.03. IPG Photonics has a 1-year low of $48.59 and a 1-year high of $151.00.

Analyst Ratings Changes

Several equities research analysts recently issued reports on IPGP shares. Zacks Research raised IPG Photonics from a “hold” rating to a “strong-buy” rating in a research report on Thursday, January 15th. Stifel Nicolaus set a $92.00 target price on shares of IPG Photonics in a research note on Tuesday, November 4th. Roth Mkm raised their price target on shares of IPG Photonics from $105.00 to $110.00 and gave the stock a “buy” rating in a research report on Tuesday, February 3rd. Citigroup raised shares of IPG Photonics from a “sell” rating to a “buy” rating and lifted their price target for the company from $68.00 to $105.00 in a report on Wednesday, November 5th. Finally, Benchmark reissued a “hold” rating on shares of IPG Photonics in a report on Wednesday, December 10th. Two research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $91.67.

Key Headlines 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

Insider Buying and Selling

In related news, major shareholder Valentin Gapontsev Trust I sold 47,901 shares of the firm’s stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $76.13, for a total value of $3,646,703.13. Following the sale, the insider directly owned 6,926,099 shares in the company, valued at $527,283,916.87. This trade represents a 0.69% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, major shareholder Fibre Devices Ltd Ip sold 35,000 shares of the business’s stock in a transaction on Monday, November 24th. The stock was sold at an average price of $76.36, for a total value of $2,672,600.00. Following the transaction, the insider owned 6,721,503 shares of the company’s stock, valued at $513,253,969.08. This trade represents a 0.52% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 470,913 shares of company stock valued at $36,233,025 over the last three months. Corporate insiders own 39.50% of the company’s stock.

Hedge Funds Weigh In On IPG Photonics

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. AQR Capital Management LLC raised its position in shares of IPG Photonics by 53.7% during the 2nd quarter. AQR Capital Management LLC now owns 978,577 shares of the semiconductor company’s stock worth $67,101,000 after buying an additional 341,773 shares in the last quarter. Norges Bank bought a new position in shares of IPG Photonics in the fourth quarter valued at approximately $12,647,000. American Capital Management Inc. acquired a new position in shares of IPG Photonics during the third quarter valued at approximately $9,038,000. Jane Street Group LLC raised its holdings in IPG Photonics by 79.4% during the first quarter. Jane Street Group LLC now owns 122,105 shares of the semiconductor company’s stock worth $7,710,000 after purchasing an additional 54,026 shares in the last quarter. Finally, Fuller & Thaler Asset Management Inc. raised its holdings in IPG Photonics by 53.4% during the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 94,670 shares of the semiconductor company’s stock worth $6,778,000 after purchasing an additional 32,947 shares in the last quarter. Institutional investors own 93.79% of the company’s stock.

About IPG Photonics

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.