IPG Photonics Q1 revenue rises 17%, beats estimates

IPG Photonics

05/05/2026 13:10

Overview

U.S. fiber laser maker's Q1 revenue rose 17% yr/yr, beating analyst expectations

Adjusted EPS for Q1 fell 6% yr/yr to $0.29

Gross margin declined due to tariffs and higher product costs

Outlook

IPG Photonics expects Q2 revenue between $260 mln and $290 mln

Company sees Q2 adjusted gross margin between 37% and 40%

IPG Photonics anticipates Q2 adjusted EPS of $0.25 to $0.55

Result Drivers

INDUSTRIAL SOLUTIONS DEMAND - Revenue growth was driven by higher sales in Industrial Solutions, particularly welding, cutting, marking, and cleaning applications

TARIFFS AND COSTS - Gross margin declined due to tariffs and higher product costs, partially offset by lower inventory provisions

REGIONAL SALES GROWTH - Sales increased 14% in Asia, 27% in North America, and 4% in Europe yr/yr

Company press release: ID:nGNX2fZKm4

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$265.5 mln
$256.94 mln (7 Analysts)
Q1 EPS
$0.04
Q1 Net Income
$1.6 mln
Q1 Gross Margin
37.5%
Q1 Operating Income
-$7.7 mln
Q1 Operating Margin
-2.9%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "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 $163.00, about 33.2% above its May 4 closing price of $122.33

The stock recently traded at 66 times the next 12-month earnings vs. a P/E of 64 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)