Abstract
United Microelectronics will report quarterly results on January 28, 2026 before-market; this preview summarizes market expectations for revenue, margin and EPS, reviews the last quarter’s performance, and outlines the most relevant business and stock drivers into the print.
Market Forecast
Based on current-quarter forecasts, United Microelectronics is expected to deliver revenue of $1.94 billion, an estimated year-over-year increase of 3.91%, with EPS of $0.14 (down 6.67% YoY) and EBIT of $0.37 billion (down 4.35% YoY). Company-reported margin markers from the prior quarter set a near-term baseline with a gross profit margin of 29.81% and a net profit margin of 25.34%; consensus implies a largely stable margin mix sequentially around these levels.
The main business remains centered on wafer foundry services, with segment breadth and customer mix positioning it for steady utilization recovery as calendar-year demand normalizes. The most promising segment is wafer manufacturing, which accounted for $56.96 billion of segment revenue in the last disclosed breakdown; this segment is positioned to capture incremental orders as customer inventory discipline improves and specialty nodes stabilize.
Last Quarter Review
United Microelectronics reported last quarter revenue of $1.94 billion, a gross profit margin of 29.81%, GAAP net profit attributable to the parent company that translated into a 25.34% net profit margin with quarter-on-quarter net profit growth of 68.29%, and EPS of $0.20 (up 7.65% YoY).
One notable highlight was better-than-expected execution versus consensus: revenue reached $1.94 billion (a 1.52% YoY increase), EPS was $0.20 compared with an estimate of $0.12, and EBIT was $0.37 billion versus an estimate of $0.33 billion.
Main business highlights: wafer operations led the revenue base with $56.96 billion in the reported breakdown, while other activities contributed $2.17 billion; the overall mix reflected the dominant contribution of core wafer services.
Current Quarter Outlook (with major analytical insights)
Main business: Wafer foundry services and utilization trajectory
The company’s main business remains wafer foundry services, where the immediate driver this quarter is the alignment between customer order patterns and fab loading. Consensus revenue of $1.94 billion signals modest YoY expansion of 3.91% alongside EPS of $0.14, implying that any utilization rebound is measured rather than outsized. Margin signposts from the prior quarter—29.81% gross margin and 25.34% net margin—serve as a practical reference for this quarter’s print. Given the prior quarter’s positive revenue surprise and stronger-than-expected EPS delivery, investors will focus on whether this momentum carries into consecutive months of stable run-rates, particularly as calendar-year spending resets. Any evidence of improving mix or yield gains within mainstream and specialty nodes could sustain gross margin near the high-20s, while a softer mix could cap upside. The quality of backlog and order visibility discussed on the call will be crucial to gauging whether current-quarter trends extend into the subsequent period.
Most promising business: Core wafer manufacturing scale and mix
The wafer manufacturing segment is positioned as the most promising engine this quarter by virtue of scale and breadth. In the latest breakdown, wafer revenue was $56.96 billion, underscoring the concentration of company performance within this segment. This quarter’s consensus indicates revenue growth on a YoY basis, which suggests that mainstream technology demand and key customer ramps are holding. Investors will evaluate how product mix across mature nodes and specialty processes shapes margins against last quarter’s 29.81% gross margin baseline. Should the company demonstrate consistent loading across higher-value flows within its wafer portfolio, EBIT delivery near $0.37 billion will look attainable, and EPS of $0.14 could prove conservative. Conversely, if loading softness tracks into the quarter’s latter weeks, the EBIT trajectory may align closer to the estimate, with limited operational leverage.
Stock-price drivers this quarter: Earnings quality, margins, and monthly momentum
This quarter’s stock reaction will likely hinge on earnings quality—specifically, the degree to which revenue and EBIT realization reflect sustainable utilization gains rather than transient mix benefits. A repeat of last quarter’s positive surprise against estimates could support multiple stability if accompanied by steady gross margin versus the 29.81% prior mark. The monthly performance cadence since October 2025 is a relevant context marker because it frames quarter-to-date run-rates; investors will look for commentary linking monthly trends to realized quarterly revenue of $1.94 billion. Another determinant will be any forward-looking comments on cost discipline and efficiency programs that might preserve net margin around the 25.34% watermark. Finally, the tone of management’s order visibility into the next quarter—particularly the durability of mainstream nodes—will factor into how the market extrapolates EPS from the current $0.14 estimate into subsequent periods.
Analyst Opinions
Among the views gathered in the defined period, the balance of opinions trends neutral, aligning with consensus forecasts that imply measured top-line growth of 3.91% YoY and restrained EPS at $0.14. The neutral stance emphasizes that, while last quarter’s delivery beat expectations on revenue and EPS, the current quarter’s EBIT and EPS estimates point to a more conservative posture pending clearer signals on utilization and mix. The neutral majority view highlights three points: first, quarter-to-date revenue expectations near $1.94 billion suggest a stable demand environment but not a broad-based acceleration; second, gross margin performance versus the 29.81% baseline will be the key confirmatory metric for operational leverage; and third, EPS of $0.14 reflects a prudent assumption on cost absorption and pricing. This perspective expects the company to reaffirm resilience in its core wafer operations and to provide cautious commentary on the pace of recovery, with attention to maintaining margin discipline. Overall, the dominant interpretation is that the setup favors in-line to modestly positive outcomes if monthly momentum and mix remain intact, while a significant outperformance would require a clearer inflection in utilization or a richer product mix than is currently embedded in forecasts.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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