LG Display is forecast to report an operating loss of 129.5 billion won in Q2, marking its first quarterly loss in four quarters since last year Q2, according to a consensus of five major Korean securities firms compiled by Yonhap Infomax on the 13th. The company expects Q2 revenue of 5.6372 trillion won. The projected loss stems from one-time costs related to a voluntary retirement program implemented in April through labor union agreement, not operational weakness in the display business. Analysts note that excluding restructuring expenses, core business profitability would have achieved over 100 billion won in profit. The workforce optimization is part of LG Display's strategic shift from large LCD production to OLED-focused operations, a transition that began in response to losses starting in 2022.
LG Display Reports Q2 Operating Loss of 129.5 Billion Won
Yonhap Infomax compiled forecasts from five major Korean securities firms submitted within the past month, projecting LG Display's Q2 revenue at 5.6372 trillion won and operating loss at 129.5 billion won. This marks the company's return to quarterly losses after four consecutive profitable quarters since last year Q2. The loss is attributed to seasonal weakness in the mobile display segment and one-time restructuring costs, not fundamental business deterioration.
![LG Display exhibition at CES 2026]()
LG Display exhibition at CES 2026 [Source: Yonhap News file photo]
Voluntary Retirement Program Drives One-Time Costs in April
LG Display implemented a voluntary retirement program in April following agreement with its labor union. Departing employees received severance compensation equivalent to up to three years of salary based on length of service, plus children's education subsidies. Jang Jeong-hoon, researcher at Samsung Securities, stated: "Workforce optimization costs were larger than the market expected. Excluding one-time factors, core business profitability could have achieved over 100 billion won in profit."
OLED Revenue Ratio Reaches 61% in Q2 2026
LG Display's OLED revenue proportion has steadily increased from 32% in 2020 to 40% in 2022, 55% in 2024, and 60.3% last year. Daishin Securities estimates Q1 2026 OLED ratio at 60% and Q2 at 61%, with Q3-Q4 projected to exceed 68%. The company terminated its large LCD business last year as part of its OLED-focused restructuring. This year's voluntary retirement program represents another component of the structural reorganization.
Analyst Commentary on H2 Performance Drivers
Jeong Won-seok, researcher at iM Securities, stated: "H2 OLED panel shipment volume for the new iPhone 18 will show solid momentum. Competitor allocation of production capacity to foldable panels creates a factor for LG Display's market share expansion in existing bar-type iPhone 18 OLED panels." Mobile display revenue typically reaches its annual low point in Q2, with growth expected in H2 driven by Apple's new product launches.
Park Hyun-woo, senior researcher at Shinhan Securities, analyzed: "Large OLED is estimated to grow in the mid-to-high teens percentage range due to sports event effects and rising monitor penetration rates." Q2 benefited from sports events including the World Cup, which boosted demand for large OLED displays.
FAQ
Why did LG Display Stocks report an operating loss in Q2 2026?
The Q2 operating loss of 129.5 billion won resulted from one-time costs associated with a voluntary retirement program implemented in April, not from operational weakness. Excluding restructuring expenses, core business profitability would have exceeded 100 billion won in profit according to Samsung Securities analysis.
What is LG Display's current OLED revenue ratio?
Daishin Securities estimates LG Display's OLED revenue ratio reached 61% in Q2 2026, up from 60% in Q1 2026 and 60.3% last year. The ratio is projected to exceed 68% in Q3-Q4 2026 as the company continues its transition from LCD to OLED-focused operations.
