On February 11, 2026, LG Electronics found itself in the spotlight of South Korea’s financial markets. Investors watched as the company’s stock price surged by as much as 17% in a single morning, hitting 121,700 KRW at 11:40 AM, according to Herald Economy. This remarkable rally was not without reason—market watchers pointed to LG’s rapidly expanding robotics division, robust first-quarter profit forecasts, and a broader strategic pivot towards artificial intelligence (AI), Physical AI, and industrial automation.
Daishin Securities, a leading brokerage, fueled the bullish sentiment by raising LG Electronics’ target stock price from 140,000 KRW to 160,000 KRW. The catalyst? A projected operating profit of 1.61 trillion KRW for the first quarter of 2026, which represents a 28% year-on-year jump and handily beats the market consensus of 1.37 trillion KRW. As Park Kang-ho, an analyst at Daishin Securities, put it, “We expect a surprise performance that exceeds consensus, with operating profit turning positive at 1.61 trillion KRW.”
LG’s transformation is rooted in a series of bold decisions made over the past year. Faced with evolving global trade dynamics, particularly North American tariff policies, the company expanded its production footprint in the United States and Mexico. This move, highlighted by eToday and Maeil Business Newspaper, allowed LG to sidestep some of the tariff headwinds that have plagued other electronics manufacturers. By focusing on premium products and increasing their prices, LG secured higher margins, directly contributing to improved operating profits for 2026.
But the real story lies in LG’s embrace of next-generation technologies. The company’s AI research arm, LG AI Research, has been hard at work developing Exaone, a sophisticated AI platform. By integrating Exaone with Physical AI—technology that combines digital intelligence with robotic hardware—LG is moving beyond traditional home appliances and into the realm of industrial automation. Its robotics portfolio, once centered on home robots like CLOi, now includes logistics robots and the CLOi Carrybot, which are designed for industrial and commercial use.
Daishin Securities’ Park Kang-ho underscored the significance of these moves: “LG Electronics is expanding new growth platforms including AI, Physical AI, and robotics. The competitiveness of AI Exaone is helping diversify the portfolio from home robots to industrial robots.” This diversification is further supported by strategic investments in three robotics companies: Robotis (specializing in actuators), Robostar (focused on industrial multi-joint and smart factory robots), and Bear Robotics (known for AI-based autonomous service robots). These partnerships are expected to enhance LG’s competitive edge and create powerful synergies across its business lines.
LG’s efforts to restructure its portfolio have not gone unnoticed. Last year, the company undertook a sweeping realignment across all divisions. The HS (home appliances) business remains a central profit driver, but premiumization—shifting towards higher-end, AI-enabled products—has become the new mantra. The MS (TV) business, which suffered an operating loss of 750.9 billion KRW last year, is projected to return to profitability in the first quarter of 2026. This turnaround is credited to the integration of monitor and B2B businesses, a reduction in low-profit models, and fixed cost savings. Major sporting events like the Winter Olympics and World Cup are also expected to boost sales of premium OLED TVs, further improving profitability.
Subsidiaries are joining the uptrend as well. LG Innotek is projected to post a first-quarter operating profit of 20 billion KRW, surpassing consensus estimates, thanks to strong iPhone 17 sales. LG Display, meanwhile, is expected to swing back to profit, minimizing the impact of the usual seasonal downturn. According to Maeil Business Newspaper, LG’s net profit for 2026 is forecasted to soar by 121.3% to 2.7 trillion KRW, paving the way for expanded dividend resources and rewarding shareholders.
Analysts are particularly excited about the shift in LG’s business model. The company is transitioning from a predominantly B2C (business-to-consumer) approach to a more B2B (business-to-business) orientation. This includes strengthening its data center-targeted air conditioning (ES) business and maintaining stable profitability in the VS (vehicle components) segment. Park Kang-ho explained, “When reflecting the portfolio shift from B2C to B2B, strengthening of data center air conditioning, and stable profitability in VS, the recent stock price is undervalued. If the expansion of the AI Physical business is reflected in the first quarter results, the potential for stock price growth is high.”
Of course, the market’s enthusiasm is not without caution. Choice Economy noted that while LG Electronics’ stock was on a tear—up 4.23% to 108,400 KRW at 9:15 AM and 6.15% to 110,400 KRW at 9:57 AM—the broader KOSPI index was actually down 0.43% at 5,279.04 points in the same morning session. The publication advised investors to remain vigilant, reminding readers that “stock investment always requires preparation for volatility.” The unpredictable nature of the market, especially in sectors undergoing rapid transformation, means that today’s winners can face tomorrow’s headwinds.
Still, the consensus among analysts appears optimistic. LG’s aggressive adoption of AI features, the introduction of differentiated subscription-based appliances, and a focus on premium product sales are expected to push up average selling prices. Fixed cost reductions implemented in late 2025 are forecasted to increase the first quarter 2026 operating profit margin by 0.5 percentage points to 10.1%. The company’s price-to-earnings ratio (PER) is expected to stand at just 7.1 times, with a price-to-book ratio (PBR) of 0.7—historically low levels that suggest significant upside potential for the stock.
In a year marked by technological leaps and shifting global trade winds, LG Electronics is betting big on the future. By doubling down on AI, robotics, and new business models, the company is not just aiming for short-term profit gains—it’s positioning itself as a leader in the next era of smart manufacturing and intelligent living. For investors and industry watchers alike, LG’s transformation offers a compelling case study in how legacy players can reinvent themselves for a digital, automated world.
As the numbers continue to roll in and LG’s robots become an increasingly familiar sight both at home and in industry, the company’s bold strategy looks set to keep the market’s attention firmly fixed on its next move.