IPG Photonics Q2 adjusted EPS beats estimates on improved gross margin

IPG Photonics

04/08/2026 13:11

Overview
U.S. laser technology maker's Q2 revenue rose 11% yr/yr, slightly missing analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Gross margin improved, aided by lower costs, inventory provisions, and tariff refunds

Outlook
IPG Photonics expects Q3 revenue between $265 mln and $295 mln
Company sees Q3 adjusted gross margin between 37.5% and 40.5%
IPG Photonics anticipates Q3 adjusted EPS of $0.30 to $0.60

Result Drivers
INDUSTRIAL SOLUTIONS GROWTH - Co said 16% yr/yr sales growth in Industrial Solutions, led by welding, marking, cleaning and additive manufacturing applications, drove overall revenue increase
GROSS MARGIN IMPROVEMENT - Co attributed higher gross margin to lower product costs, reduced inventory provisions, and $4.7 mln in tariff refunds
ADVANCED SOLUTIONS DECLINE - Co said Advanced Solutions revenue fell 9% yr/yr due to lower micromachining and defense sales, partly offset by growth in semiconductor applications

Company press release: ID:nGNX6pdsSQ

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Miss*
$278.60 mln
$279.98 mln (8 Analysts)
Q2 Adjusted EPS
Beat
$0.58
$0.38 (7 Analysts)
Q2 EPS
 
$0.12
 
Q2 Net Income
 
$5.20 mln
 
Q2 Gross Margin
 
40.40%
 
Q2 Operating Income
 
$4.50 mln
 
Q2 Operating Margin
 
1.60%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the electronic equipment & parts peer group is "buy"
Wall Street's median 12-month price target for IPG Photonics Corp is $125.68, about 44.1% above its August 3 closing price of $87.20
The stock recently traded at 48 times the next 12-month earnings vs. a P/E of 63 three months ago

Reuters Recommended Reads
Aug 4 - Austria's ams OSRAM Q2 revenue up 4% on semiconductor portfolio growth
Aug 3 - Advanced Energy Q2 revenue beats estimates on semiconductor demand
Aug 4 - Rockwell Automation raises 2026 profit forecast on strong industrial demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)