LG Electronics shares closed 1.8% higher on Monday after the company released preliminary second-quarter 2026 earnings guidance that exceeded analyst expectations. The South Korean conglomerate reported operating profit of W1.6 trillion, above Goldman Sachs' estimate of W1.1 trillion and the Bloomberg consensus of W1.3 trillion. The company published these pre-earnings figures during trading on July 7, and it plans to provide a full divisional breakdown on its July 30 earnings call.
Goldman Sachs analysts attributed much of the upside to a one-off tariff refund worth several hundreds of billions of Korean won, along with better-than-anticipated margins in the Media Entertainment Solution division. Those two factors together helped lift reported operating profit above external forecasts.
Divisional details in the preliminary release showed a mixed picture. The Home Appliance division delivered revenue slightly ahead of expectations, driven in part by continued demand for home appliance subscription services. Operating profit for this segment was materially higher than forecasts, a result Goldman Sachs says was likely influenced by the tariff refund referenced by LG Electronics management.
The Media Entertainment Solution unit outperformed as well. Both revenue and operating profit margin beat estimates, with stronger OLED TV sales linked to a global sports event and sustained growth in the webOS platform cited as supportive factors for the division's performance.
By contrast, the Vehicle Solution division reported revenue broadly in line with estimates but recorded operating profit below forecasts. Goldman Sachs noted that the shortfall in operating profit was due to a one-off factor tied to the pull-in of expense recognition. The Eco Solution segment posted revenue roughly in line with expectations while reporting an operating profit margin that was better-than-feared, despite showing a year-over-year contraction.
Following the preliminary results, Goldman Sachs maintained a Neutral rating on LG Electronics and adjusted its 12-month target price to W139,000. Investors will have the opportunity to hear management's full commentary and see the divisional detail on July 30, when the company hosts its scheduled earnings call.
For now, the market reaction to the guidance was positive on a near-term basis, reflected in the stock's 1.8% gain on the day the results were released.