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IPG Photonics vs Applied Optoelectronics: IPGP and AAOI compared
IPG Photonics is the larger company: $288M of revenue in its latest quarter (Q3 2026) against $270M for Applied Optoelectronics (Q3 2026). Applied Optoelectronics is growing faster (+128% against +15% a year earlier). IPG Photonics is more profitable, with an operating margin of 7.2% against -0.5%.
Where the money goes: IPGP and AAOI
IPG Photonics (IPGP) · Q3 2026
IPG Photonics, Q3 2026: revenue $288M (+15% year over year), operating margin 7.2%, net earnings $20.3M, operating cash flow $46.2M. The chart follows the revenue to costs, profit and cash.
Applied Optoelectronics (AAOI) · Q3 2026
Applied Optoelectronics, Q3 2026: revenue $270M (+128% year over year), operating margin -0.5%, net earnings $6.3M, operating cash flow −$2.9M. The chart follows the revenue to costs, profit and cash.
| IPG Photonics (IPGP) | Applied Optoelectronics (AAOI) | |
|---|---|---|
| Latest quarter | Q3 2026 | Q3 2026 |
| Revenue | $288M | $270M |
| Revenue growth, Y/Y | +15% | +128% |
| Gross margin | 40.7% | — |
| Operating margin | 7.2% | -0.5% |
| Net earnings | $20.3M | $6.3M |
| Net margin | 7.1% | 2.3% |
| Operating cash flow | $46.2M | −$2.9M |
| Free cash flow | $28.8M | — |
| Market value | $3.4B | — |
| P/E | 84.2× | — |
| Analysts’ mean target | $118.43 | — |
Where the revenue comes from
IPG Photonics
- Lasers and Components: $226M (79%)
- Systems: $61.5M (21%)
Applied Optoelectronics
- Data Center: $156M (58%)
- CATV: $111M (41%)
- Telecom: $2.7M (1%)
Questions
Which is bigger, IPG Photonics or Applied Optoelectronics?
IPG Photonics is the larger company: $288M of revenue in its latest quarter (Q3 2026) against $270M for Applied Optoelectronics (Q3 2026).
Is IPG Photonics or Applied Optoelectronics growing faster?
Applied Optoelectronics is growing faster (+128% against +15% a year earlier).
Which is more profitable, IPG Photonics or Applied Optoelectronics?
IPG Photonics is more profitable, with an operating margin of 7.2% against -0.5%.
More: IPG Photonics earnings · how IPG Photonics makes money · Applied Optoelectronics earnings · how Applied Optoelectronics makes money
From the companies' latest 10-Q, 10-K or earnings release (10-Q filed Nov 3, 2026; 10-Q filed Nov 5, 2026). Fiscal quarters can end on different dates. Not investment advice.