MARLBOROUGH, Massachusetts, May 5, 2026, 15:05 (EDT)
Shares of IPG Photonics Corporation (IPGP.O) tumbled over 25% Tuesday, after the fiber-laser manufacturer posted stronger sales for the quarter but saw profits slip and flagged ongoing margin pressure from tariffs. The stock was recently changing hands at $87.38, off $34.96 from its previous close—a 29% plunge.
Investors zeroed in on more than just the demand rebound—what mattered was whether IPG could actually squeeze profit from it. MarketScreener, citing MT Newswires, flagged first-quarter revenue at $265.5 million, topping the FactSet consensus of $258.6 million. But the adjusted earnings figure, at 29 cents a share, fell short of FactSet’s 31-cent target.
IPG said revenue jumped 17% year over year for the quarter ended March 31. Net income slipped to $1.6 million, or 4 cents a diluted share, down from $3.8 million, or 9 cents, the prior year. Adjusted earnings per share came in at 29 cents, a slight drop from 31 cents.
Margins took a hit. Gross margin slid to 37.5% from 39.4%. The company posted a GAAP operating loss of $7.7 million. IPG pointed to tariffs and rising product costs as the main pressures, though some of that was cushioned by reduced inventory provisions.
First-quarter revenue topped forecasts, Chief Executive Dr. Mark Gitin said, highlighting battery manufacturing and medical uses as key demand drivers. Industrial Solutions—the biggest segment for IPG—was responsible for 86% of total sales, up 21%, with growth coming from welding, cutting, marking, and cleaning.
Gitin, speaking on the call, described bookings as “very strong” across North America and Asia—highlighting China and Japan in particular. The company’s book-to-bill ratio remained above one for the second quarter running, signaling that orders continued to outpace billed shipments. The Motley Fool
The profit outlook remained under the microscope. CFO Timothy P.V. Mammen told analysts tariffs aren’t going away until 2026, calling the situation “obviously pretty fluid.” For the second quarter, he put the tariff impact at roughly 150 basis points — that’s 1.5 percentage points — baked into their gross-margin forecast. The Motley Fool
IPG is looking at second-quarter revenue somewhere between $260 million and $290 million, with adjusted earnings per share in the 25 to 55 cent range. Adjusted gross margin lands between 37% and 40%, while adjusted EBITDA—a measure backing out certain costs—should come in at $32 million to $48 million.
IPG took steps to put a lingering legal issue behind it. According to an SEC filing, the company struck a deal with TRUMPF Laser- und Systemtechnik SE, settling and dismissing all existing patent lawsuits between the two firms globally. A separate exhibit confirmed the global settlement between IPG and TRUMPF.
The settlement comes on the heels of a March Unified Patent Court ruling out of Düsseldorf, Germany, focused on specific uses and designs tied to IPG’s adjustable mode beam, or AMB, lasers. IPG, for its part, said at the time that the ruling impacted products in Germany, France, and Italy, but those accounted for less than 1% of total sales. Other laser types, the company noted, were not part of the dispute.
The shares diverged from rivals on the day. Coherent tacked on 2.6%, Lumentum picked up 3.3%, and nLIGHT slid 3.9%. But with IPG plunging much harder, the drop looked more like a direct hit from margin and outlook issues unique to the company, not just broader laser-and-optics weakness.
The catch: bigger orders might not show up in profits right away. IPG warned its numbers could fall short if trade rules change, tariffs or counter-tariffs hit, demand drops, orders stall, rivals step up, currencies fluctuate, or the economy turns sour.
Mammen flagged “tougher comparisons” coming up in the second half, after last year’s strong performance in that period. Still, IPG holds a solid cash position for now: first-quarter numbers show $813 million in cash, equivalents, and short-term investments, with zero debt on the books. The Motley Fool
