Filing Flows › IPG Photonics (IPGP) › How it makes money
How IPG Photonics (IPGP) makes money
IPG Photonics (IPGP) made $288M of revenue in the third quarter 2026 (Q3 2026), +15% from a year earlier. Lasers and Components brought in $226M (79%); Systems brought in $61.5M (21%). Of every dollar of revenue, 41¢ was left as gross profit, 7¢ was left as operating profit, 7¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Lasers and Components | $226M | 78.6% | +3% | +12% |
| Systems | $61.5M | 21.4% | +5% | +26% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $288M | 100.0% |
| Cost of revenue | $170M | 59.3% |
| Gross profit | $117M | 40.7% |
| Operating expenses | $96.3M | 33.5% |
| Operating profit | $20.8M | 7.2% |
| Income tax | $8.1M | 2.8% |
| Net earnings | $20.3M | 7.1% |
| Operating cash flow | $46.2M | 16.1% |
| Free cash flow | $28.8M | 10.0% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $288M | +15% |
| Q2 2026 | $279M | +11% |
| Q1 2026 | $265M | +17% |
| Q4 2025 | $274M | +17% |
| Q3 2025 | $251M | +8% |
| Q2 2025 | $251M | -3% |
| Q1 2025 | $228M | -10% |
From IPG Photonics' 10-Q filed Nov 3, 2026 (on EDGAR).
Questions
How does IPG Photonics make money?
IPG Photonics (IPGP) made $288M of revenue in the third quarter 2026 (Q3 2026), +15% from a year earlier. Lasers and Components brought in $226M (79%); Systems brought in $61.5M (21%). Of every dollar of revenue, 41¢ was left as gross profit, 7¢ was left as operating profit, 7¢ was left as net earnings.
What is IPG Photonics' biggest business?
Lasers and Components: $226M in the third quarter 2026, 79% of revenue, +12% from a year earlier.
What is IPG Photonics' profit margin?
Net earnings were $20.3M, 7.1% of revenue, in the third quarter 2026; the operating margin was 7.2%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.