NEW YORK, May 30, 2026, 12:03 (EDT)
IPG Photonics shares slipped 2.4% to $114.52 in Friday trading, capping a down week that left the stock 3.8% lower from the previous Friday. Shares remain well above the May 5 post-earnings low of $90.84, but gains are losing steam toward the end of the month.
This comes up now since there’s no Saturday trading to clear positions, and the market opens Monday after a week shortened by Memorial Day. Nasdaq has May 25 down as a market holiday, and lists normal trading hours as 9:30 a.m. to 4 p.m. Eastern on business days.
IPG shares fell on Friday while the broader market climbed. S&P 500 was up 0.2%, the Dow gained 0.7%. Among peers, Lumentum slipped 0.7% and nLIGHT dropped 6.4%. IPG ended the session 26.5% under its 52-week high of $155.82.
Margin improvement now is the main question, not demand. The issue for IPG is whether it can convert stronger demand into better margins—more revenue left after production costs. For the first quarter, IPG reported revenue up 17% to $265.5 million. CEO Mark Gitin said revenue was “above our expectations” and marked a second quarter in a row of double-digit growth. IPG Photonics Investor Relations
Margins are the sticking point. CFO Tim Mammen said IPG “expect[s] the impact from tariffs to persist in 2026.” The company’s adjusted gross margin outlook for the second quarter factors in a tariff hit of roughly 150 basis points, or 1.5 percentage points.
The company now expects second-quarter revenue to come in between $260 million and $290 million. It sees adjusted earnings per diluted share at 25 cents to 55 cents, with adjusted EBITDA forecast in a range of $32 million to $48 million. Adjusted EBITDA removes interest, taxes, depreciation and amortization, as well as certain company items.
Market watchers are divided on the May selloff. Citi’s Jamie Wang called the post-earnings fall “unwarranted”, arguing IPG stands to gain as laser demand picks up. May research saw Stifel lower its price target, while Needham raised its rating. TipRanks
Analysts pressed management on the earnings call. Stifel’s Ruben Roy questioned if the mid-40s gross-margin target still holds up with tariffs and higher input costs. Needham’s James Ricchiuti wanted more detail on regional bookings and asked about how sustainable systems growth is.
Industrial Solutions did most of the heavy lifting. IPG reported that segment made up 86% of first-quarter sales, up 21% over last year, as demand from welding, cutting, marking and cleaning stayed strong. Advanced Solutions dropped 5%, with weaker micromachining and defense sales, though the company saw gains in medical and semiconductor markets.
Legal risk looks lighter for IPG. According to a quarterly filing, IPG and Trumpf settled as of May 1. IPG agreed to pay $13.5 million and license two Trumpf patents around the world. The company said it was not aware of any other legal cases that could have a material impact on its financials as of the filing date.
But there’s a clear downside risk here. If tariff costs remain, orders get delayed or cancelled, or if pricing pressure intensifies, hitting the second-quarter forecast could get tougher. IPG named trade policy changes, tariffs, product demand, cancellations, competition, currency moves and the broader economy as the main risks to its outlook.
Looking to this week, the stock faces another test. It’s not as sharp as the May 5 drop, but it still matters. Buyers stepped in under $100 before. They’ll want proof the bounce isn’t just a relief move.
