IPG Photonics started 2026 with first-quarter revenue of $265.5 million, up 17% from $227.8 million a year earlier, marking its second straight quarter of double-digit year-over-year sales growth.
Industrial solutions drove the improvement, rising 21% to $227.6 million from $188.0 million and accounting for 86% of total revenue. Advanced solutions fell 5% to $37.9 million from $39.8 million.
By geography, sales increased 27% in North America, 14% in Asia and 4% in Europe.
Gross margin narrowed to 37.5% from 39.4%, while adjusted gross margin slipped to 37.8% from 40.0%. The company said tariffs and higher product costs pressured margins, partly offset by lower inventory provisions.
Operating results swung to a loss of $7.7 million from operating income of $1.8 million a year ago. Operating margin turned negative at 2.9%, compared with positive 0.8% in the prior-year quarter.
Net income declined 58% to $1.6 million from $3.8 million, and diluted earnings per share fell 56% to $0.04 from $0.09.
Adjusted EBITDA increased 8% to $35.2 million from $32.7 million, while adjusted diluted EPS edged down 6% to $0.29 from $0.31.
Capital spending totaled $16 million in the quarter.
For the second quarter, IPG projected revenue of $260 million to $290 million, adjusted gross margin of 37% to 40%, adjusted operating expenses of $92 million to $95 million, adjusted diluted EPS of $0.25 to $0.55, and adjusted EBITDA of $32 million to $48 million. The market has reacted to these announcements by moving the company's shares -22.63% to a price of $94.65. If you want to know more, read the company's complete 8-K report here.
