Why IPG Photonics Jumped 35% Today, Even as the Markets Were Down
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Impressive earnings, guidance, and commentary catapulted the industrial laser stock higher.Shares of industrial laser leader IPG Photonics (IPGP +35.14%) rocketed 35.8% on Thursday as of 3:00 p.m. EDT. The rally was all the more impressive given that the broader stock market indexes were down at the time, and by quite a bit. IPG reported fourth quarter 2025 earnings today; needless to say, results impressed Wall Street by surprising to the upside, along with first quarter guidance that also handily beat estimates. ExpandNASDAQ: IPGPIPG PhotonicsToday's Change(35.14%) $38.98Current Price$149.88Key Data PointsMarket Cap$4.7BDay's Range$116.00 - $153.9952wk Range$48.59 - $153.99Volume103KAvg Vol360KGross Margin38.44% IPG awakes from a long slumber IPG has had a difficult half-decade or so. Even with today's rally, the stock remains 58% below its 2018 all-time high, which the stock nearly reached again during the 2021 bull market. A combination of weakening industrial markets, Chinese competition, and Russia's invasion of Ukraine all complicated IPG's business in various ways. Having been a founder-led company since inception, IPG appointed its first "outsider" CEO, Mark Gitin, in 2024. The fourth quarter showed IPG's industrial end markets appearing to bottom, with Gitin's strategy of refocusing on high-profit and new end-markets beginning to pay off. In Q4, revenue accelerated 17% to $274.5 million, while adjusted (non-GAAP) earnings per share grew 53% to $0.46, with both figures beating estimates by a significant amount. Looking ahead to the first quarter, management sees revenue of $235 million to $265 million and adjusted EPS of $0.10 to $0.40, above analyst expectations of $243.4 million and $0.25, respectively. Management also authorized a new $100 million share repurchase program, signaling further confidence. Image source: Getty Images. IPG's impressive turnaround should continue In addition to the good results, management commentary was positive. In particular, the large battery production end-market in China recovered, as that market is shifting to advanced batteries for energy storage, which require more sophisticated welding techniques. The medical end market also grew 21% in the quarter, as the company's urology lasers secured new customers. And IPG also makes lasers for semiconductor equipment, which is a small segment for IPG but is obviously booming right now, thanks to the AI revolution. Finally, IPG just introduced its new CROSSBOW laser last Fall, a low-cost laser for the defense industry that can neutralize small drones from the air. The defense sector is an entirely new segment for IPG, which will establish a new facility in Alabama to support the product. With core markets beginning to recover and the company unveiling new advanced products that aren't even included in current results, it's no wonder IPG is rising again today.Read NextMay 6, 2022 •By Billy DubersteinWhy IPG Photonics Rose 6% on a Down Week for Tech StocksMar 3, 2022 •By Rich SmithWhy IPG Photonics Stock Just CrashedMay 5, 2020 •By Rich SmithWhy IPG Photonics Stock Surged 17.5% TodayMar 12, 2020 •By Rich SmithWhy Old and New Industrial Stocks All Crashed TodayJul 30, 2019 •By Dan CaplingerTough Times Make IPG Photonics Miss the TargetFeb 12, 2019 •By Rich SmithWhy IPG Photonics Stock Popped 10% This MorningAbout the AuthorBilly Duberstein is a contributing Motley Fool technology analyst covering semiconductors, hardware, software, and AI, as well as consumer goods. Billy loves looking at the story behind investments from an interdisciplinary point of view, with an equal appetite for high-growth disruptors and beaten-down value names. He is also CEO of Stone Oak Capital, a registered investment adviser in California. He previously worked as a technology analyst for several hedge funds and as a research assistant at Wedbush Securities. Billy holds an MBA in finance from New York University and a bachelor’s degree in music from the University of Virginia.TMFStoneOakStocks MentionedIPG PhotonicsNASDAQ: IPGP$149.88 (+35.14%) $+38.98*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.