IPG Photonics (NASDAQ:IPGP) Shares Gap Up on Better-Than-Expected Earnings

IPG Photonics Corporation (NASDAQ:IPGP) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $110.90, but opened at $116.70. IPG Photonics shares last traded at $128.2050, with a volume of 370,708 shares trading hands.

The semiconductor company reported $0.46 EPS for the quarter, beating analysts’ consensus estimates of $0.25 by $0.21. IPG Photonics had a net margin of 2.66% and a return on equity of 2.35%. The company had revenue of $274.47 million for the quarter, compared to analyst estimates of $249.58 million. During the same period in the prior year, the firm posted $0.18 EPS. The company’s quarterly revenue was up 17.2% on a year-over-year basis. IPG Photonics has set its Q1 2026 guidance at 0.100-0.400 EPS.

Key IPG Photonics News

Here are the key news stories impacting IPG Photonics this week:

• Positive Sentiment: Q4 results materially beat estimates — EPS $0.46 vs. consensus $0.25 and revenue $274.5M vs. $249.6M; revenue was up ~17% year‑over‑year, which underpins the bullish reaction. IPG Photonics Announces Fourth Quarter 2025 Financial Results
• Positive Sentiment: Market commentary and press coverage credited the strong quarter, guidance/comments and outlook for the dramatic intraday rally. Coverage explains why the stock jumped sharply despite broader market weakness. Why IPG Photonics Jumped 35% Today, Even as the Markets Were Down
• Positive Sentiment: Stock reached a 52‑week high on the strength of the quarter and optimism about growth potential; articles also noted elevated short interest ahead of the move. Highly Short Stock IPG Photonics Hits 52-Week High After Strong Quarter
• Neutral Sentiment: Company provided Q1 2026 guidance of EPS $0.10–0.40 and revenue $235M–$265M (consensus EPS ≈ $0.27, revenue ≈ $243.5M). The range is wide — guidance is directional but mixed versus consensus. IPG Photonics Q4 Earnings & Guidance (press materials)
• Neutral Sentiment: Earnings call transcript and slide deck are available for more detail on bookings, end‑market demand and margin drivers — useful for investors wanting to parse sustainability of the beat. IPG Photonics Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analyst and media pieces are labeling IPGP a momentum stock after the quarter; that can amplify flows but also raise short‑term volatility. IPG Photonics is a Great Momentum Stock
• Negative Sentiment: Valuation and guidance risk — the stock now trades at a very high P/E (reflecting elevated expectations); the wide Q1 EPS range and the lower end below consensus create downside risk if growth or margins slow.

Analyst Ratings Changes

IPGP has been the topic of a number of recent analyst reports. Benchmark reissued a “hold” rating on shares of IPG Photonics in a research note on Wednesday, December 10th. Stifel Nicolaus set a $92.00 price target on IPG Photonics in a research note on Tuesday, November 4th. Zacks Research upgraded IPG Photonics from a “hold” rating to a “strong-buy” rating in a report on Thursday, January 15th. Weiss Ratings reiterated a “sell (d+)” rating on shares of IPG Photonics in a research note on Monday, December 29th. Finally, Citigroup upgraded shares of IPG Photonics from a “sell” rating to a “buy” rating and boosted their target price for the company from $68.00 to $105.00 in a research report on Wednesday, November 5th. Two investment analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, IPG Photonics has a consensus rating of “Moderate Buy” and a consensus price target of $91.67.

Insider Activity

In other IPG Photonics news, major shareholder Valentin Gapontsev Trust I sold 47,901 shares of IPG Photonics stock in a transaction dated Tuesday, November 18th. The stock was sold at an average price of $76.13, for a total transaction of $3,646,703.13. Following the completion of the transaction, the insider owned 6,926,099 shares in the company, valued at approximately $527,283,916.87. The trade was a 0.69% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Fibre Devices Ltd Ip sold 35,000 shares of the business’s stock in a transaction that occurred on Monday, November 24th. The stock was sold at an average price of $76.36, for a total value of $2,672,600.00. Following the sale, the insider directly owned 6,721,503 shares of the company’s stock, valued at $513,253,969.08. This represents a 0.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 470,913 shares of company stock worth $36,233,025. 39.50% of the stock is owned by insiders.

Hedge Funds Weigh In On IPG Photonics

A number of hedge funds have recently bought and sold shares of IPGP. Versant Capital Management Inc raised its holdings in shares of IPG Photonics by 51.1% in the third quarter. Versant Capital Management Inc now owns 343 shares of the semiconductor company’s stock valued at $27,000 after purchasing an additional 116 shares during the last quarter. Assetmark Inc. increased its stake in IPG Photonics by 6.8% in the 4th quarter. Assetmark Inc. now owns 1,820 shares of the semiconductor company’s stock valued at $130,000 after buying an additional 116 shares during the last quarter. Deutsche Bank AG increased its stake in IPG Photonics by 6.1% in the 4th quarter. Deutsche Bank AG now owns 2,214 shares of the semiconductor company’s stock valued at $159,000 after buying an additional 128 shares during the last quarter. Allworth Financial LP boosted its stake in shares of IPG Photonics by 10.2% in the 3rd quarter. Allworth Financial LP now owns 1,449 shares of the semiconductor company’s stock worth $115,000 after buying an additional 134 shares during the last quarter. Finally, Comerica Bank boosted its stake in shares of IPG Photonics by 0.9% in the 4th quarter. Comerica Bank now owns 15,105 shares of the semiconductor company’s stock worth $1,082,000 after buying an additional 135 shares during the last quarter. 93.79% of the stock is owned by hedge funds and other institutional investors.

IPG Photonics Price Performance

The company has a market capitalization of $6.33 billion, a P/E ratio of 246.31, a price-to-earnings-growth ratio of 14.02 and a beta of 1.03. The firm has a fifty day moving average price of $84.96 and a 200-day moving average price of $82.67.

About IPG Photonics

IPG Photonics Corporation is a global leader in the design and manufacture of high-performance fiber lasers and amplifiers used in industrial, medical, scientific, and telecommunications applications. The company’s core products include ytterbium and erbium fiber lasers, diode lasers, and fiber amplifiers that deliver high power and efficiency for precision cutting, welding, marking, and engraving. IPG’s systems are engineered to optimize process speed, reliability, and energy consumption, making them a preferred choice for advanced manufacturing environments.

In addition to stand-alone laser sources, IPG offers turnkey laser systems and integrated solutions tailored to sectors such as automotive, electronics, aerospace, additive manufacturing, and life sciences.