Abstract

LG Display will report its fourth-quarter 2025 results on January 28, 2026 before-market; this preview outlines consensus revenue, margins, net income trajectory, and adjusted EPS alongside segment dynamics and majority analyst viewpoints for the quarter ended December 2025.

Market Forecast

Based on the latest forecast dataset, LG Display’s fourth-quarter 2025 revenue is expected at $4.98 billion with an estimated year-over-year decline of 15.12%, EBIT at $0.29 billion with estimated year-over-year growth of 62.09%, and adjusted EPS at $0.12 with estimated year-over-year growth of 1,100.00%. The company’s major business highlights center on mobile and IT displays as demand rebalances into premium OLED mix; Automotive displays are poised to provide structural support despite cyclical headwinds. The most promising segment is Automotive, which contributed $0.53 billion last quarter and is expected to post improved year-over-year momentum as OEM model upgrades increasingly deploy larger, higher-resolution panels.

Last Quarter Review

In the third quarter of 2025, LG Display delivered revenue of $5.02 billion, a gross profit margin of 16.39%, a GAAP net loss attributable to the parent company of -$20.66 billion (quarter-on-quarter growth of -102.39%), a net profit margin of -0.30%, and adjusted EPS of -$0.02 with actual year-over-year growth of 94.28%. A key financial highlight was EBIT of $0.31 billion, exceeding prior estimates by $0.06 billion, indicating tighter cost control and mix improvements versus forecast. Main business revenue distribution featured Mobile and Other at $2.80 billion, Monitors/Notebook/Tablet at $2.55 billion, TV at $1.09 billion, and Automotive at $0.53 billion; Mobile and Automotive showed the most resilient mix in the quarter.

Current Quarter Outlook

Main Business: Mobile and Other (including smartphone OLED)

Mobile and Other remains the largest revenue contributor at $2.80 billion in the previous quarter, underscoring the importance of OLED module shipments for flagship smartphone cycles and premium tablets. For the fourth quarter, management’s directional guidance implies a continued focus on yield enhancement and product mix, which typically supports gross margin resilience even amid a softer unit backdrop. Seasonal flagship launches in the second half help utilization rates, but pricing dynamics across mid-tier panels could weigh on year-over-year growth as inventory normalization proceeds. The operating leverage from improved yields should sustain EBIT positivity relative to Q3, but revenue contraction year-over-year aligns with the forecasted total revenue decline of 15.12%, as broader IT demand remains mixed.

The primary factor influencing margin within Mobile and Other is the balance between premium OLED penetration and the pricing of legacy LCD capacity. LG Display has been pivoting toward OLED, and as utilization of OLED lines improves, the cost per unit declines, aiding gross margin. However, quarter-specific headwinds include currency volatility that can affect USD-reported figures and panel price competition from peers, potentially compressing the net profit margin despite operational improvements. The overall expectation is that Mobile and Other will continue to anchor quarterly revenue while margin performance depends on product mix skew and progress in yield metrics.

Most Promising Business: Automotive Displays

Automotive revenue of $0.53 billion in the last quarter highlights a growing base of embedded display content per vehicle as instrument clusters and center stacks expand, both in size and complexity. Structural growth is powered by the ongoing electrification trend and higher infotainment requirements, encouraging OEMs to adopt larger, higher-resolution and often curved panels. For the fourth quarter, sequential revenue stability appears likely, with potential year-over-year improvement driven by model-refresh cycles and new programs entering mass production.

Risk elements for Automotive include OEM production variability, supply chain coordination, and panel qualification schedules that can shift deliveries across quarters. Yet, Automotive tends to be more stable versus consumer electronics, so even in a cyclical downturn elsewhere, this segment can mitigate revenue and margin volatility. From a profitability perspective, Automotive program ramps typically bring favorable pricing relative to commodity panels, supporting blended gross margin. If EBIT delivers in line with the $0.29 billion forecast, the contribution from Automotive could be an important pillar sustaining overall operating results amidst broader market softness.

Stock Price Drivers This Quarter

The most impactful drivers for LG Display’s stock price in the fourth quarter revolve around revenue realization versus the $4.98 billion estimate, margin performance relative to the 16.39% baseline, and whether net profit margin turns positive from the prior quarter’s -0.30%. Investors will focus on adjusted EPS reaching $0.12 and whether year-over-year growth implied by the forecast is achieved, which would signal effective cost management and product mix optimization despite top-line pressure. Segment mix will be scrutinized, particularly the contribution from Mobile OLED and Automotive, as both have higher margin potential compared to commodity LCD categories.

Another central determinant is EBIT delivery. The forecast of $0.29 billion with a 62.09% estimated year-over-year increase suggests meaningful operational improvement; any deviation will likely influence sentiment. Commentary on utilization rates, inventory levels at downstream brands, and pricing across IT panels will guide expectations for the first half of 2026. Finally, the outlook for TV panels is relevant, as a stable premium OLED TV mix could offset volume softness, but aggressive price competition in conventional LCD TV panels may limit net margin improvement.

Analyst Opinions

The majority of institutional views lean cautious for LG Display’s fourth quarter, citing the forecasted revenue decline of 15.12% year-over-year and the persistence of margin headwinds in commoditized panel categories. Analysts emphasize that while EBIT remains positive and adjusted EPS is forecast to recover to $0.12, sustaining profitability at the net level requires continued mix upgrades and disciplined capacity utilization. A recurring theme among the cautious camp is the risk that IT demand recovery lags expectations, leaving overall revenue short of historical seasonal peaks.

Well-followed sell-side voices note that Automotive and premium OLED shipments are supportive, but the gap from legacy LCD price erosion could cap total margin expansion. On balance, cautious analysts expect LG Display to meet or slightly miss the top-line estimate near $4.98 billion, with EBIT close to $0.29 billion, and adjusted EPS aligning to $0.12 if cost savings persist. Their stance is that the quarter will likely validate operational progress but may not shift the structural narrative until IT panel demand shows clearer signs of recovery, positioning LG Display for a steadier margin profile in subsequent quarters.