At a glance
IPG Photonics Corporation is worth $3.21B, about 104 times its fiscal 2025 earnings. Revenue grew 2.7% to $1.00B in fiscal 2025, with 3.1% kept as profit; over 5 years it has grown 3.5% a year. It pays no dividend; it spent $1.25B buying back its shares over FY2021–FY2025. The stock returned −13.2% over the past year with dividends reinvested and −13.8% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 26.8% in the 2020 crash (S&P 500: 33.7%) and 52.4% in the 2022 bear market (S&P 500: 24.5%).
The business in plain English
IPG Photonics makes fiber lasers, which create their beam inside a specialty optical fiber about as thin as a human hair, powered by semiconductor diodes. Factories use them to cut, weld, mark and clean metal and other materials, often in place of saws, plasma cutters or older laser types. IPG also offers diode lasers, amplifiers, complete laser systems and add-ons such as delivery cables and chillers. It makes most key parts itself, from diodes to fiber, with major plants in the US and Germany.
Customers include equipment makers that build IPG lasers into their own machines, system integrators that build complete production systems, and end users. IPG shipped to thousands of them in 2025, mostly through its own sales force. About 86% of 2025 revenue came from materials processing customers in industries such as general manufacturing, cars, aerospace and electronics. Smaller markets include medical procedures, scientific research and defense, where IPG is developing CROSSBOW, a laser system for countering drones.
Revenue was about $1.0 billion in 2025. High-power continuous-wave lasers, which give a steady beam of 1,000 watts or more, made up 30.8% of sales. Other lasers, service and parts made up 26.4%, complete systems 14.7%, and pulsed lasers, which fire in short bursts, 14.3%. China was the largest region at 29.1%, ahead of North America at 26.6%.
Price history
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IPGP -13.2% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| High Power Continuous Wave ("CW") Lasers | $308.8M | 30.8% |
| Other Revenue including Other Lasers, Amplifiers, Service, Parts, Accessories | $264.5M | 26.4% |
| Laser and Non-Laser Systems | $147.2M | 14.7% |
| Pulsed Lasers | $143.3M | 14.3% |
| Medium Power CW Lasers | $88.2M | 8.8% |
| Quasi-Continuous Wave ("QCW") Lasers | $51.8M | 5.2% |
By geography
| China | $291.9M | 29.1% |
| North America | $267.2M | 26.6% |
| Other Europe | $138.5M | 13.8% |
| Other | $121.8M | 12.1% |
| Germany | $105.2M | 10.5% |
| Japan | $66.4M | 6.6% |
| Rest of World | $12.8M | 1.3% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $278.6M, up 11.1% from a year earlier, and net income was $5.2M (-20.6%).
- For fiscal 2025, revenue was $1.00B (+2.7% year over year; -3.5% a year from FY2020 to FY2025) with a 3.1% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | -3.5% weak |
|---|---|
| Operating margin | 1.3% weak |
| Free cash flow margin | -0.3% weak |
| Return on equity (FY2025) | 1.5% weak |
| Return on assets (FY2025) | 1.3% weak |
| Cash and investments | $904.0M (no borrowings found in the filings) good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $1.20B | $159.6M | $197.6M |
| FY2021 | $1.46B | $278.4M | $266.6M |
| FY2022 | $1.43B | $109.9M | $102.5M |
| FY2023 | $1.29B | $218.9M | $185.5M |
| FY2024 | $977.1M | $-181.5M | $149.4M |
| FY2025 | $1.00B | $31.1M | $-3.5M |
Valuation snapshot
| Market value | $3.21B |
|---|---|
| P/E ratio | 103.5 |
| Dividend yield | 0% |
Rank among 1514 US companies
Market value at each year end
IPG Photonics’s market value went from $5.24B at the end of 2016 to $3.21B on Oct 28, 2026, down 39%; since the end of 2025 it is up 7%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $3.21B | +6.5% |
| 2025 | $3.02B | -4.1% |
| 2024 | $3.15B | -38.2% |
| 2023 | $5.09B | +10.4% |
| 2022 | $4.61B | -49.7% |
| 2021 | $9.18B | -23.1% |
| 2020 | $11.93B | +55.1% |
| 2019 | $7.69B | +27.1% |
| 2018 | $6.05B | -47.3% |
| 2017 | $11.48B | +119.0% |
| 2016 | $5.24B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| IPGP price data to Oct 28, 2026 | +5.5% | -13.2% | -5.0% | -13.8% | -2.5% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +5.5% |
| 2025 | -1.5% |
| 2024 | -33.0% |
| 2023 | +14.7% |
| 2022 | -45.0% |
| 2021 | -23.1% |
| 2020 | +54.4% |
| 2019 | +27.9% |
| 2018 | -47.1% |
| 2017 | +116.9% |
| 2016 | +10.7% |
| 2015 | +19.0% |
| 2014 | -3.5% |
| 2013 | +16.4% |
| 2012 | +98.7% |
| 2011 | +7.1% |
| 2010 | +89.0% |
| 2009 | +26.9% |
| 2008 | -34.1% |
| 2007 | -16.7% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 65% over that stretch · deepest drop along the way 69.1%, back to its old high 17.7 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 23.6% over that stretch · deepest drop along the way 26.8%, back to its old high 1.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 52.2% over that stretch · deepest drop along the way 52.4%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 2 open-market purchases ($199K) and 43 sales ($23.4M), 39 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Jul 21, 2026 | Valentin Gapontsev Trust I 10% owner | sell (plan) | $2.5M |
| Jul 21, 2026 | Valentin Gapontsev Trust I 10% owner | sell (plan) | $2.5M |
| Jul 31, 2026 | Ip Fibre Devices Ltd 10% owner | sell (plan) | $2.2M |
| Jun 29, 2026 | Ip Fibre Devices Ltd 10% owner | sell (plan) | $1.8M |
| Jun 29, 2026 | Ip Fibre Devices Ltd 10% owner | sell (plan) | $1.7M |
Who owns it
Large shareholders (13G filings)
| First Eagle Investment Management, LLC | 7.9% | Jun 30, 2026 |
ETFs with the most weight in IPGP
| BSMC Brandes U.S. Small-Mid Cap Value ETF | 2.44% |
| ROBO ROBO Global Robotics & Automation Index ETF | 1.69% |
| MGMT Ballast Small/Mid Cap ETF | 1.03% |
| SQLV Royce Quant Small‑Cap Quality Value ETF | 0.35% |
| ETHO Amplify Etho Climate Leadership U.S. ETF | 0.29% |
| MSSM Morgan Stanley Pathway Small-Mid Cap Equity ETF | 0.29% |
| GVLU Gotham 1000 Value ETF | 0.28% |
| DFSV Dimensional US Small Cap Value ETF | 0.21% |
What could go wrong
- Heavy reliance on sales to China. China made up 29% of net sales in 2025. Slower growth there, tariff fights or tighter export controls could cut sales, and China-based rivals such as Wuhan Raycus compete with IPG.
- Falling prices and larger rivals. Laser prices are falling across the industry, which squeezes profit margins. Rivals include Coherent, Trumpf and nLight. Many are boosting power while cutting prices, and several have more resources than IPG.
- Sales swing with factory spending cycles. About 86% of 2025 revenue came from materials processing. Lasers are big-ticket factory equipment, and spending on such gear has historically seen sudden, severe downturns when demand for cars, electronics or machinery weakens.
- High fixed costs from making its own parts. IPG builds most components itself, which makes much of its cost base fixed. Without long-term purchase commitments from customers, a drop in orders can leave excess inventory and costs that shrink too slowly.
- Founder-linked holders control over 35% of votes. Trusts and a company created by the late founder control over 35% of voting power. That gives them heavy influence over board elections and any takeover. Big sales of their shares could pressure the stock.
- Counter-drone laser push may not pay off. IPG may not manage to turn CROSSBOW, its laser system designed to counter drones, into a successful business. Strict and changing US export, aviation and government-purchasing rules could also limit testing, sales or deployment.
Recent events
- Major agreement signed
- Quarterly results released
- Major agreement signed; Investor presentation or announcement
- Shareholder vote results
- Quarterly results released; Other company announcement
- Other company announcement
- Other company announcement
- Quarterly results released
- Quarterly results released
For income and retirement investors
IPG Photonics pays no dividend and paid none from 2021 through 2025, so its dividend yield was 0% as of October 28, 2026. An income investor would receive no cash payouts and would have to trim shares to draw income. The company has returned cash through buybacks instead, spending about $1.25 billion over 2021–2025, and shares outstanding fell about 20% between November 2021 and August 2026. Buybacks slowed to $53 million in 2025, when free cash flow (operating cash flow minus capital spending) was slightly negative.
The shares have fallen hard in downturns. They dropped about 69% in the 2008 financial crisis and regained their high about 18 months after the low. They dropped about 27% in the 2020 COVID crash and recovered in under two months. In the 2022 bear market they fell about 52% and had not regained their early-2022 peak as of October 28, 2026. A single stock like this carries more risk than a diversified fund.
Questions investors ask
Does IPG Photonics pay a dividend?
No. IPG Photonics pays no dividend and paid none from 2021 through 2025, so its dividend yield was 0% as of October 28, 2026. It has returned cash through share buybacks instead, spending about $1.25 billion on them over 2021–2025. That helped shrink shares outstanding by about 20% between November 2021 and August 2026. Buybacks give each remaining share a bigger slice of the company, but they provide no cash income to shareholders.
How does IPG Photonics make money?
IPG Photonics makes money mainly from the fiber lasers and laser systems it builds for equipment makers, system integrators and factories, plus service, parts and accessories. About 86% of 2025 revenue came from materials processing, such as cutting, welding and marking metal for general manufacturing, cars, aerospace and electronics. High-power continuous-wave (steady-beam) lasers were the largest product line, at 30.8% of about $1.0 billion in 2025 revenue. Other markets include medical, scientific research, instrument makers and defense.
How much of IPG Photonics' sales come from China?
About 29%. China was IPG's largest market in 2025, at 29.1% of revenue, or about $292 million. That compares with 25% in 2024 and 28% in 2023. North America came next at 26.6%, then the rest of Europe at 13.8% and Germany at 10.5%. Because so much depends on China, tariffs, trade disputes, export rules or slower Chinese growth could hit sales. China-based rivals such as Wuhan Raycus also compete with IPG.
Is IPG Photonics profitable?
Yes, but only slightly. In 2025, IPG earned about $31 million on about $1.0 billion of revenue, a 3.1% net margin (profit as a share of revenue), after losing about $182 million in 2024. In 2021 it earned about $278 million. In the quarter ended June 30, 2026, revenue rose 11.1% from a year earlier to about $279 million, while net income fell 20.6% to about $5 million. Because 2025 earnings were thin, the shares traded at about 104 times 2025 earnings as of October 28, 2026.
How has IPG Photonics stock performed over the long run?
It has lost ground over the past five and ten years. Based on share price, the stock lost about 13% over one year, 52% over five years and 22% over ten years to October 28, 2026. Its price swings are large. One-year volatility, a measure of how widely the price moves, was about 71%, and the stock fell about 55% from peak to low within that year. Calendar-year results ranged from a 116.9% gain in 2017 to a 47.1% loss in 2018.