United Microelectronics (NYSE:UMC) Releases Earnings Results, Beats Estimates By $0.37 EPS

United Microelectronics (NYSE:UMC) issued its earnings results on Wednesday. The semiconductor company reported $0.53 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.16 by $0.37, FiscalAI reports. The business had revenue of $2.16 billion for the quarter, compared to analysts’ expectations of $2.14 billion. United Microelectronics had a return on equity of 13.67% and a net margin of 20.71%.

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 Stock Up 0.2%

NYSE:UMC traded up $0.04 during trading hours on Wednesday, hitting $17.39. 11,770,346 shares of the company’s stock traded hands, compared to its average volume of 13,806,298. The stock’s fifty day moving average price is $22.54 and its two-hundred day moving average price is $14.94. The firm has a market cap of $43.79 billion, a P/E ratio of 26.75, a P/E/G ratio of 2.26 and a beta of 1.58. The company has a debt-to-equity ratio of 0.12, a quick ratio of 2.23 and a current ratio of 2.72. United Microelectronics has a twelve month low of $6.56 and a twelve month high of $28.96.

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. The ex-dividend date of this dividend is Wednesday, July 8th. This is a positive change from United Microelectronics’s previous annual dividend of $0.37. This represents a yield of 166.0%. United Microelectronics’s payout ratio is presently 49.23%.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on UMC shares. BNP Paribas Exane reiterated an “underperform” rating on shares of United Microelectronics in a research report on Thursday, May 28th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of United Microelectronics in a research note on Tuesday, May 26th. Finally, Wall Street Zen upgraded shares of United Microelectronics from a “hold” rating to a “buy” rating in a report on Saturday. One investment analyst has rated the stock with a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Strong Sell” and an average target price of $8.60.

Hedge Funds Weigh In On United Microelectronics

Large investors have recently made changes to their positions in the business. Smartleaf Asset Management LLC acquired a new stake in shares of United Microelectronics during the second quarter worth approximately $27,000. Kestra Advisory Services LLC purchased a new stake in United Microelectronics in the 4th quarter worth approximately $52,000. Arax Advisory Partners lifted its position in United Microelectronics by 583.7% in the 4th quarter. Arax Advisory Partners now owns 8,656 shares of the semiconductor company’s stock worth $68,000 after buying an additional 7,390 shares in the last quarter. Wealthspire Advisors LLC boosted its stake in shares of United Microelectronics by 1,988.9% during the 4th quarter. Wealthspire Advisors LLC now owns 10,006 shares of the semiconductor company’s stock valued at $79,000 after buying an additional 9,527 shares during the period. Finally, Graham Capital Management L.P. purchased a new position in shares of United Microelectronics during the 4th quarter valued at $88,000. Institutional investors and hedge funds own 5.05% of the company’s stock.

Trending Headlines about United Microelectronics

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

• Positive Sentiment: Q2 earnings beat expectations: UMC reported earnings of $0.53 per share, well above the $0.16 consensus estimate, while revenue of $2.16 billion slightly exceeded forecasts. Separately, the company reported 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: AI-related capacity expansion: UMC’s board approved additional cleanroom capacity at its Singapore facility and construction of a new fab building at its Tainan campus. The investments are intended to address accelerating AI-driven demand and support future revenue growth. Taiwan’s UMC raises 2026 capex
• Positive Sentiment: Technology and analyst support: UMC expects Intel 12-nanometer design kits by year-end and said silicon photonics production is underway. Wedbush raised its price target following the results, while Zacks added UMC to its Rank #1 momentum-stock list. United Microelectronics price target raised at Wedbush
• Neutral Sentiment: UMC filed its reviewed second-quarter financial statements with the U.S. Securities and Exchange Commission, providing formal regulatory disclosure of the results. UMC files reviewed Q2 financials
• Negative Sentiment: The stock had fallen sharply ahead of the earnings release, reflecting investor caution and marking its fourth consecutive declining session. Higher capital spending for new capacity could also pressure near-term cash flow before the investments generate returns. UMC declines ahead of earnings

United Microelectronics Company Profile

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.