At a $4-billion market cap, IPG Photonics Corp. (NASDAQ: IPGP) is just a fraction of the size of the $60-billion behemoth Lumentum, but that doesn't mean investors should overlook this fast-growing alternative. IPGP shares are up about 37% YTD as the firm reported a strong quarter earlier in the year. Q1 2026 revenue was $265 million, a 17% YOY improvement, and bookings improved as well. Adjusted earnings per share (EPS) of 29 cents more than tripled YOY, thanks in large part to the strength of IPG's industrial solutions business.
IPG has the benefit of multiple angles within the photonics space, and its products and services also cover medical, semiconductor, defense, and other applications. This helps make the firm resilient in the face of sector-wide turmoil, but it doesn't help IPG deal with ongoing tariff headwinds.