# IPG Photonics Corporation (IPGP)

> Source: Nexqual · https://nexqual.com/IPGP · data as of 2026-10-23 20:00 UTC · cite as "Nexqual, IPG Photonics Corporation (IPGP), nexqual.com/IPGP" · informational, not investment advice.

**Price:** USD 71.07 (+2.39% on the day) · last close of Oct 23, 2026; US market closed, not a live price. Prev close 69.41 · day 68.28–71.45 · 52w 68.27–155.82 · market cap $3.02B · NMS

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $1.07B, net income $27.6M (2.6% margin), free cash flow $20.8M (SEC filings).
- Valuation: P/E 109.7x (avg 60.9x at the last 2 fiscal year-ends).
- Earnings quality: non-operating income $31.8M vs operating income $8.0M over the last four quarters; P/E excluding non-operating income ≈547.5x (estimate: non-operating income taxed at the company's 30.7% effective rate).
- 1 of 80 tracked superinvestors hold IPGP (13F, Q2 2026): 0 new, 0 added, 1 reduced, 0 unchanged.
- Insider open-market sales, last ~7 months: 13 Form 4 filings, $23.4M; 2 not under a Rule 10b5-1 plan ($1.4M); 4 by opportunistic insiders (1 outside 10b5-1 plans), 2 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Insider open-market purchases, last ~7 months: 1 Form 4 filing, $199K; 0 by opportunistic insiders, 0 by routine insiders.
- Analysts: Buy (mean 2.33 on a 1–5 scale) (9 analysts), mean target USD 124.14 (range 78–152).
- Total return with dividends: 1Y -17.9% vs S&P 500 +13.4%; 5Y -55.3% vs S&P 500 +76.9%.
- Next earnings: 2026-11-03, EPS estimate USD 0.49, revenue estimate $283M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $1.46B | $1.43B | $1.29B | $977M | $1.00B | $1.07B |
| Gross profit | $696M | $555M | $542M | $338M | $381M | — |
| Operating income | $368M | $170M | $232M | -$208M | $13.1M | $8.0M |
| Net income | $278M | $110M | $219M | -$182M | $31.1M | $27.6M |
| EPS (diluted) | $5.16 | $2.16 | $4.63 | -$4.09 | $0.73 | — |
| Free cash flow | $267M | $103M | $186M | $149M | -$3.5M | $20.8M |
| Gross margin | 47.7% | 38.9% | 42.1% | 34.6% | 38.0% | — |
| Operating margin | 25.2% | 11.9% | 18.0% | -21.3% | 1.3% | 0.7% |
| Net margin | 19.1% | 7.7% | 17.0% | -18.6% | 3.1% | 2.6% |
| Revenue growth | +21.7% | -2.1% | -9.9% | -24.1% | +2.7% | — |
| Cash + short-term investments | $1.51B | $1.18B | $1.18B | $930M | $839M | — |
| Total debt | $34.2M | $16.0M | — | — | — | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 109.7x · P/E ex non-operating (est.) ≈547.5x · P/S 2.8x · P/FCF 145.3x · P/B 1.4x · FCF yield 0.69% · Earnings yield 0.91%
P/E at fiscal year-ends: Dec 2025 98.2x, Dec 2023 23.5x.

## Superinvestors (SEC 13F-HR, Q2 2026)
1 of 80 tracked investors hold IPGP. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| First Eagle Investment | First Eagle Investment Management | 0.65% | $392M | Reduced -27.3% |

## Insider sales (SEC Form 4, open-market, last ~7 months)
11 of 13 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-10-02 | Ip Fibre Devices Ltd |  | 15,361 | $1.3M | 0.2% | Yes (adopted March 17, 2026) | Too little history (no open-market trades in 2023 or 2024) |
| 2026-10-02 | Scherbakov Eugene A | Director | 3,048 | $260K | 6.3% | Yes (adopted March 17, 2026) | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-09-01…2026-09-02 | Valentin Gapontsev Trust I |  | 27,397 | $2.1M | 0.4% | Yes (adopted March 17, 2026) | Routine (sold in Mar each year 2023–2025; this trade is outside those months) |
| 2026-08-04…2026-08-05 | Ip Fibre Devices Ltd |  | 30,313 | $2.9M | 0.5% | Yes (adopted March 17, 2026) | Too little history (no open-market trades in 2023 or 2024) |
| 2026-07-31 | Ip Fibre Devices Ltd |  | 27,000 | $2.3M | 0.4% | Yes (adopted March 17, 2026) | Too little history (no open-market trades in 2023 or 2024) |
| 2026-07-31 | Scherbakov Eugene A | Director | 1,524 | $132K | 3.1% | Yes (adopted March 17, 2026) | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-07-21 | Valentin Gapontsev Trust I |  | 56,316 | $5.8M | 0.8% | Yes (adopted March 17, 2026) | Routine (sold in Mar each year 2023–2025; this trade is outside those months) |
| 2026-06-29 | Ip Fibre Devices Ltd |  | 65,700 | $6.8M | 1% | Yes (adopted March 17, 2026) | Too little history (no open-market trades in 2023 or 2024) |
| 2026-06-29 | Lopresti Angelo P | SVP, Secretary & Gen Counsel | 1,000 | $110K | 1.6% | Yes (adopted March 17, 2026) | Too little history (no open-market trades in 2023 or 2024) |
| 2026-06-29 | Scherbakov Eugene A | Director | 1,524 | $155K | 3% | Yes (adopted March 17, 2026) | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-06-22 | Agnes Tang | Director | 1,511 | $178K | 13.6% | Yes (adopted August 26, 2025) | Too little history (no open-market trades in 2024) |
| 2026-05-22 | Mammen Timothy Pv | SVP, Chief Financial Officer | 9,975 | $1.2M | 11.5% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-05-14 | Desmond Jeanmarie F. | Director | 1,690 | $178K | 13.9% | No | Opportunistic (traded every year 2023–2025, no repeating month) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Insider purchases (SEC Form 4, open-market, last ~7 months)
1 purchase, $199K. Private placements, offerings, dividend reinvestment and employee stock purchase plan buys are excluded.
| Trade date | Insider | Role | Shares | Value | Avg price | Insider type |
|---|---|---|---|---|---|---|
| 2026-08-26 | Peeler John R | Director | 2,710 | $199K | 73.58 | Too little history (no open-market trades in 2023–2025) |

## Analysts
Consensus Buy (mean 2.33 on a 1–5 scale), 9 analysts; mean target USD 124.14 (low 78, high 152).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-08-11 | Citigroup | Target lowered | Buy | $150 → $137 |
| 2026-07-17 | Needham | Target raised | Buy | $110 → $120 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-24) | 5Y (from 2021-10-25) |
|---|---|---|
| Total return | -17.9% | -55.3% |
| S&P 500 (SPY) | +13.4% | +76.9% |
| Per year | -18.0% | -14.9% |
| Volatility (annualized) | 71.8% | 45.2% |
| Max drawdown | -54.9% (Feb 2026→Oct 2026) | -69.7% (Dec 2021→Mar 2025) |

## Peers (Semiconductor Equipment & Materials)
AMBA (Ambarella, Inc.) USD 66.5 +5.35% · ACLS (Axcelis Technologies, Inc.) USD 106.58 +1.76% · AXTI (AXT Inc) USD 52.08 +1.01% · ACMR (ACM Research, Inc.) USD 50.55 +2.91% · VECO (Veeco Instruments Inc.) USD 42.06 +2.21% · KLIC (Kulicke and Soffa Industries, I) USD 73.71 +0.42%

## More
Full page: https://nexqual.com/IPGP · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in IPGP's own 10-K filed 2026-02-23 (https://www.sec.gov/Archives/edgar/data/1111928/000111192826000040/ipgp-20251231.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Competitor | Lumentum (LITE) | "In the materials processing market, we compete with makers of fiber lasers and other lasers, such as Coherent, Inc., JPT Opto-Electronics Co. Ltd., Laserline GmbH, Lumentum Holdings Inc., Maxphotonics Co., Ltd., MKS Inst…" |

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Industrial Solutions | $237.0M | 85.1% | +15.7% |
| Lasers and Components | $219.8M | 78.9% | +12.0% |
| Systems | $58.8M | 21.1% | +7.7% |
| Advanced Solutions | $41.5M | 14.9% | -9.4% |
| Total revenue | $278.6M | 100% | — |
The lines above cover 200% of total revenue.

## Revenue by region (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Total Asia | $138.7M | 49.8% | +18.8% |
| — China (part of Total Asia) | $95.7M | 34.4% | +29.1% |
| — Other (part of Total Asia) | $31.1M | 11.2% | +16.0% |
| — Japan (part of Total Asia) | $11.9M | 4.3% | -24.8% |
| North America | $72.2M | 25.9% | -2.3% |
| Total Europe | $59.3M | 21.3% | +4.9% |
| — Other (part of Total Europe) | $31.6M | 11.4% | -7.6% |
| — Germany (part of Total Europe) | $27.7M | 9.9% | +24.1% |
| Rest of World | $8.4M | 3.0% | +138.1% |
| Total revenue | $278.6M | 100% | — |

## Company outlook (8-K filed 2026-08-04)

- "For the third quarter of 2026, IPG expects revenue of $265 million to $295 million, adjusted gross margin between 37.5% and 40.5% and adjusted operating expenses of $92 million to $95 million."
- "IPG anticipates delivering adjusted earnings per diluted share in the range of $0.30 to $0.60 and adjusted EBITDA in the range of $35 million to $51 million."
- "This guidance is based upon current market conditions and expectations and is subject to the risks outlined in the Company's reports filed with the SEC and assumes exchange rates relative to the U.S. dollar of euro 0.88, Japanese yen 162 and Chinese yuan 6.81, respectively."

Analysts expect $283.3M for the current quarter, +1.2% vs the guidance midpoint $280.0M. Source: https://www.sec.gov/Archives/edgar/data/1111928/000111192826000150/ipgp06302026exhibit991.htm

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.49 | $0.39 | +27.1% | $283.3M | 7 |
| Next quarter (ends 2026-12-31) | $0.50 | $0.47 | +7.5% | $290.5M | 7 |
| Current fiscal year (ends 2026-12-31) | $1.86 | $1.52 | +22.7% | $1.12B | 7 |
| Next fiscal year (ends 2027-12-31) | $2.31 | $2.31 | -0.2% | $1.22B | 7 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-11-20 (includes earnings 2026-11-03): ±16.5%; last 8 reports averaged ±11.4%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-11-20 | 27 | 75.6% | ±16.5% |
| 2026-12-18 | 55 | 68.2% | ±21.0% |
| 2027-01-15 | 83 | 61.7% | ±23.2% |
| 2027-04-16 | 174 | 61.9% | ±33.6% |