LG Electronics Stock Surges 23% in Best Day Since 2020

By Kwanwoo Jun

LG Electronics shares rallied to their best day in more than five years as investors bet on a strong earnings rebound this year.

Shares in the South Korean consumer-electronics giant soared 23% on Wednesday, gaining for a third consecutive session. It was the stock's largest daily percentage gain since December 2020. The benchmark Kospi rose 1.0%.

The rally comes amid growing optimism about the company's outlook, with some analysts viewing its latest earnings miss as a trough before a recovery.

Kangho Park of Daishin Securities said LG's operating profit could jump 28% from a year earlier to 1.61 trillion won, equivalent to $1.11 billion, this quarter, well above market consensus of 1.37 trillion won.

That would reverse the previous quarter's 109 billion won operating loss, which was LG's first operating loss in nine years. The company also suffered a quarterly net loss--its first in a year--as it grappled with a host of challenges. Weak demand, intense competition, higher marketing and labor costs, and a costly restructuring dragged on the bottom line.

Park said he expects LG's television segment to return to profit in 2026 after exiting unprofitable business lines and streamlining its workforce. Sporting events, such as the Winter Olympics and the World Cup this year, could also boost demand for its premium TVs.

As for LG's home-appliance segment, profit margins could rise, given the company is increasing local production in the U.S. and Mexico to avoid higher tariffs, he said.

The Daishin analyst also expects LG's expansion into artificial intelligence and robotics to be a major share-price catalyst, citing continuing investment in its own AI research lab developing a homegrown large language model. He also pointed to LG's investments in robotics actuator and joint manufacturers.

Adding to the positive sentiment, Moody's in late January upgraded LG's credit rating to Baa1 from Baa2, citing lower debt, a projected earnings recovery and investments in new businesses.

"We expect the company to lead advances in smart home appliances through its industrial and commercial robotics businesses and AI home solutions," Kyobo Securities' Choi Bo-young said in a recent research note. "The recent credit rating upgrade will have a positive impact on the overall business."

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

February 11, 2026 03:14 ET (08:14 GMT)