United Microelectronics (NYSE:UMC) Releases Quarterly Earnings Results, Beats Estimates By $0.38 EPS

United Microelectronics (NYSE:UMC) announced its quarterly earnings results on Wednesday. The semiconductor company reported $0.54 EPS for the quarter, beating the consensus estimate of $0.16 by $0.38, Zacks reports. United Microelectronics had a return on equity of 13.67% and a net margin of 20.71%.The business had revenue of $2.16 billion for the quarter, compared to analyst estimates of $2.14 billion.

Here are the key takeaways from United Microelectronics’ conference call:

• Second-quarter performance improved: Revenue rose 12.6% quarter over quarter to TWD 68.73 billion, gross margin reached 32.5%, utilization increased to 85%, and wafer shipments grew 10.6%.
• UMC expects continued momentum in the third quarter, guiding for high-single-digit shipment growth, utilization above 90%, firm U.S.-dollar ASPs, and gross margin in the mid-30% range, supported by power-management ICs, sensors, microcontrollers, and a rebound in 8-inch demand.
• Management projects AI-related revenue of approximately US$300 million in 2026 and more than US$1 billion within three years, spanning connectivity, power management, FPGA, advanced packaging, and silicon photonics.
• The board approved phased capacity investments, including clean-room expansion at Singapore P4 and a new Tainan fab for advanced packaging; 2026 CapEx was raised to US$2 billion from US$1.5 billion to prepare for AI-driven demand.
• Management said the recovery is not yet broad-based; handset, PC, and notebook demand is expected to decline year over year, while customer inventories remain elevated in consumer, smartphone, automotive, and industrial segments. Increased investment is also expected to drive low-teens annual depreciation growth for at least the next two years, potentially limiting gross-margin expansion.

United Microelectronics Price Performance

NYSE UMC traded up $1.48 during trading hours on Thursday, reaching $18.59. 8,384,712 shares of the company’s stock were exchanged, compared to its average volume of 13,857,091. The firm has a fifty day moving average of $22.53 and a 200-day moving average of $15.00. United Microelectronics has a one year low of $6.56 and a one year high of $28.96. The stock has a market cap of $46.81 billion, a PE ratio of 28.65, a price-to-earnings-growth ratio of 0.53 and a beta of 1.58. The company has a current ratio of 2.72, a quick ratio of 2.23 and a debt-to-equity ratio of 0.12.

United Microelectronics Increases Dividend

The firm also recently declared an annual dividend, which will be paid on Thursday, August 6th. Investors of record on Wednesday, July 8th will be given a dividend of $0.4122 per share. This is a boost from United Microelectronics’s previous annual dividend of $0.37. The ex-dividend date is Wednesday, July 8th. This represents a yield of 166.0%. United Microelectronics’s dividend payout ratio is currently 49.23%.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the company. BNP Paribas Exane reiterated an “underperform” rating on shares of United Microelectronics in a research note on Thursday, May 28th. Zacks Research raised shares of United Microelectronics from a “hold” rating to a “strong-buy” rating in a report on Tuesday. Wall Street Zen raised shares of United Microelectronics from a “hold” rating to a “buy” rating in a report on Saturday, July 25th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of United Microelectronics in a research report on Tuesday, May 26th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, United Microelectronics currently has a consensus rating of “Reduce” and a consensus target price of $8.60.

Hedge Funds Weigh In On United Microelectronics

Institutional investors and hedge funds have recently bought and sold shares of the business. AQR Capital Management LLC increased its stake in shares of United Microelectronics by 873.8% in the fourth quarter. AQR Capital Management LLC now owns 9,464,312 shares of the semiconductor company’s stock valued at $74,389,000 after buying an additional 8,492,466 shares in the last quarter. Rafferty Asset Management LLC lifted its position in United Microelectronics by 50.7% during the 2nd quarter. Rafferty Asset Management LLC now owns 8,403,064 shares of the semiconductor company’s stock worth $64,283,000 after buying an additional 2,826,486 shares in the last quarter. Bank of America Corp DE lifted its position in United Microelectronics by 4.9% during the 3rd quarter. Bank of America Corp DE now owns 7,388,868 shares of the semiconductor company’s stock worth $56,008,000 after buying an additional 344,416 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings in United Microelectronics by 10.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 5,655,721 shares of the semiconductor company’s stock worth $40,438,000 after acquiring an additional 537,777 shares during the last quarter. Finally, Barclays PLC grew its holdings in United Microelectronics by 35.2% during the 4th quarter. Barclays PLC now owns 5,511,784 shares of the semiconductor company’s stock worth $43,323,000 after acquiring an additional 1,435,780 shares during the last quarter. Institutional investors and hedge funds own 5.05% of the company’s stock.

United Microelectronics News Summary

Here are the key news stories impacting United Microelectronics this week:

• Positive Sentiment: Second-quarter earnings beat estimates. UMC reported adjusted EPS of $0.54, well above the $0.16 consensus estimate, while revenue reached $2.16 billion versus expectations of $2.14 billion. Net margin was 20.71% and return on equity was 13.67%. United Microelectronics quarterly earnings report
• Positive Sentiment: Revenue and profitability improved materially. Official results showed second-quarter revenue of NT$68.73 billion, up 12.6% sequentially and 17.0% year over year, with a 32.5% gross margin. UMC Reports Second Quarter 2026 Results
• Positive Sentiment: UMC is expanding capacity for AI-driven demand. The company will add cleanroom capacity in Singapore and begin construction of a new fab building in Tainan, supporting expected growth in AI, specialty-node, and other semiconductor applications. The expansion also prompted UMC to raise its 2026 capital-spending plans. Taiwan’s UMC raises 2026 capex
• Positive Sentiment: Technology milestones strengthen the growth outlook. Intel 12nm design kits are expected by year-end, while silicon photonics has entered production, potentially broadening UMC’s future customer base. UMC Q2 earnings and technology update
• Positive Sentiment: Analyst sentiment improved. Wedbush raised its price target following the results, and Zacks upgraded UMC from “Hold” to “Strong Buy” and included it among its top momentum stocks. Wedbush raises UMC price target
• Neutral Sentiment: UMC filed its reviewed second-quarter financial statements with the U.S. Securities and Exchange Commission, providing a formal regulatory update. UMC files reviewed Q2 financials
• Negative Sentiment: UMC had fallen sharply ahead of earnings, marking its fourth consecutive losing session, indicating that investors had been cautious and that some of the positive results may already be reflected in expectations. UMC declines ahead of earnings

About United Microelectronics

United Microelectronics Corporation (UMC) is a Taiwan-based semiconductor foundry that provides wafer fabrication and related manufacturing services to a global customer base. Founded in 1980, the company operates as a pure-play foundry, producing integrated circuits for a range of customers including fabless semiconductor companies and integrated device manufacturers. UMC is publicly listed (NYSE: UMC) and focuses on high-reliability manufacturing rather than branding consumer products.

UMC’s core services encompass wafer fabrication using a portfolio of process technologies, with particular emphasis on mature and specialty nodes that support analog, power-management, radio-frequency (RF), and mixed-signal applications.