IPG Photonics Reports 15% Third-Quarter Revenue Growth

The Tip Desk · November 3, 2026 · 2 min read

Third-quarter revenue reached $287.5 million as Advanced Solutions sales rose 33% after two quarters of year-over-year declines.

IPG Photonics Corporation (IPGP) reported third-quarter revenue of $287.5 million, up 15% from a year earlier, as Advanced Solutions sales reversed two quarters of year-over-year declines.

The laser-technology company said the result was its fourth consecutive quarter of double-digit year-over-year revenue growth and came in above the midpoint of its guidance. Year-over-year growth had been 11% in the second quarter and 17% in the first.

Industrial Solutions, still the bulk of the business, generated $239.5 million, or 83% of total revenue, up 12% from a year earlier. The company said welding and additive manufacturing applications drove that segment. Advanced Solutions sales were $48.0 million, up 33% from a year earlier, after a 9% year-over-year decline in the second quarter and a 5% decline in the first. The company attributed the Advanced Solutions rebound to higher sales in semiconductor and defense applications.

GAAP gross margin was 40.7%, compared with 39.5% a year earlier. Adjusted gross margin was 41.0%. The company said the year-over-year increase reflected lower product costs and $5.0 million in net tariff refunds, partially offset by lower fixed-cost absorption. Operating income was $20.8 million, or a 7.2% operating margin, versus $7.9 million and 3.1% a year earlier. Net income rose 171% to $20.3 million from $7.5 million, while diluted earnings per share rose 161% to $0.47 from $0.18. Adjusted EBITDA was $51.5 million and adjusted earnings were $0.61 a share.

Emerging growth products accounted for 52% of total revenue, down from 58% in the prior quarter on product mix. By region, sales increased 14% in Asia and 33% in North America and decreased 1% in Europe year over year. Foreign-exchange rates increased revenue by approximately 1%.

Book-to-bill was approximately one in the third quarter, after remaining above one in the second quarter. Chief Executive Officer Dr. Mark Gitin said the company continued to see improved industrial demand and executed on strategic growth initiatives.

For the fourth quarter of 2026, IPG expects revenue of $265 million to $295 million, adjusted gross margin of 37.0% to 40.0%, adjusted operating expenses of $91 million to $94 million, adjusted earnings of $0.30 to $0.60 a share, and adjusted EBITDA of $33 million to $50 million. The guidance assumes no contribution from the acquisition of Lumibird Medical. The company said it anticipates closing that deal in the fourth quarter and that the acquisition is expected to increase revenue in Advanced Solutions. Gitin said the company remains focused on driving margin expansion.