| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 16 | 125.0x | 17.8x | Bottom tier | |
Growth | 43 | 13.0% | 7.1% | Around median | |
Quality | 36 | -0.2% | 4.5% | Bottom tier | |
Safety | 81 | — | 2.6x | Top tier | |
Capital Return | 66 | — | 2.12% | Around median | |
Momentum | 25 | 24.2% | 2.9% | Bottom tier | |
Sentiment | 70 | 7 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
IPG Photonics develops laser solutions for industrial and advanced applications, generating revenue from the sale of lasers, subsystems, and integrated systems that combine laser technology with beam delivery, real-time process monitoring, and application expertise. Industrial solutions include cutting, welding, cleaning, marking, and additive manufacturing, while advanced solutions serve medical, defense, precision manufacturing, and semiconductor equipment applications. In Q1 FY2026, Industrial Solutions accounted for 86% of revenue, compared with 14% for Advanced Solutions, while emerging growth products represented 53% of total revenue.
In Q2 FY2026, the company reported revenue of $278.6 million and gross profit of $112.5 million, equivalent to a gross margin of approximately 40.4%, with net income of $5.2 million and earnings per share of $0.12. These results represent an improvement from Q1 FY2026, when revenue was $265.5 million, gross profit was $99.5 million, and net income was $1.6 million, while news on August 5, 2026 indicated that battery manufacturing and industrial solutions helped the company exceed earnings estimates and improve margins.
On a trailing twelve-month basis in 2026, revenue reached $1.1 billion, gross profit was $410.1 million, and net income was $27.6 million, reflecting a net margin of approximately 2.5% despite strong gross profit. By comparison, IPG Photonics generated revenue of $1.0 billion, gross profit of $381.5 million, and net income of $31.1 million in FY2025, making the restoration of net profitability alongside revenue growth a central consideration in assessing performance.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $135.5, within a range of $120 to $151, with a consensus rating of Buy; even the highest target is below the 52-week range high of $155.82, reflecting a more conservative ceiling than the annual peak. The 52-week range extends from $69.41 to $155.82, and no reported P/E ratio is available in the data, which is consistent with the limited trailing twelve-month net income of $27.6 million in 2026 and makes the stock's valuation more dependent on the sustainability of battery growth and margin improvement.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
IPG Photonics generated revenue of $278.6 million and gross profit of $112.5 million in Q2 FY2026. Net income was $5.2 million, earnings per share were $0.12, and the calculated gross margin reached approximately 40.4%. News on August 5, 2026 reported that battery manufacturing and industrial solutions supported revenue and margins and helped the company exceed earnings estimates.
Battery manufacturing was a key driver of welding and cutting growth in Q1 FY2026, when Industrial Solutions revenue increased 21% year over year. IPG Photonics solutions target electric vehicle batteries and stationary storage batteries for data centers, including larger cells and thicker busbars that require higher-power lasers. In these applications, the company combines adjustable beam lasers with beam delivery and real-time process monitoring, and the effect of this demand also appeared in the Q2 FY2026 results published on August 5, 2026.
In February 2026, IPG Photonics announced a $10 million follow-on order from Lockheed Martin for the Crossbow system. The system is designed to counter Group 1 and Group 2 drone threats and relies on high-power single-mode lasers, for which the company has demonstrated capabilities of up to 8 kilowatts. Shipments for the follow-on order began in Q2 FY2026, and management said on May 5, 2026 that delivery would extend across several quarters.
Advanced Solutions accounted for 14% of Q1 FY2026 revenue and includes medical, defense, precision manufacturing, and semiconductor applications. The medical business grew strongly year over year due to a new customer, and management indicated on May 5, 2026 that it had a strong order book for 2026 and expected product approvals and launches during 2026 and 2027. Semiconductor revenue also increased as lithography, metrology, and inspection business expanded among major equipment manufacturers, but total Advanced Solutions revenue declined 5% year over year due to weakness in defense and precision manufacturing.
The GAAP gross margin was 37.5% in Q1 FY2026, and management said on May 5, 2026 that it was lower than desired relative to the revenue level. The company estimated a tariff impact of approximately 150 basis points in Q2 FY2026, alongside continued costs from underutilized production capacity above the medium-term target. In contrast, the gross margin calculated from EDGAR data increased to approximately 40.4% in Q2 FY2026, while pricing and cost-reduction initiatives continued.
The company ended Q1 FY2026 with $813 million in cash, cash equivalents, and short-term investments, $71 million in long-term investments, and no debt. The analyst consensus is Buy, with an average price target of $135.5 and a target range of $120 to $151, compared with a 52-week range of $69.41 to $155.82. No reported P/E ratio is available in the data, while trailing twelve-month net income in 2026 was approximately $27.6 million on revenue of $1.1 billion, making margin and profitability improvement a decisive factor in estimating value.
