Samsung Revenue Jumps to 195.3 Trillion Won as Operating Profit Hits Record
Key Facts
Samsung Electronics reported record quarterly revenue of 195.3 trillion won in the third quarter of 2026, up 14% from the previous quarter, while operating profit reached 107.4 trillion won, the company said in a statement. The results came as investor concerns grew over whether AI spending could support chip demand at the same pace. Reuters said operating profit was in line with its estimates, while the shortfall against expectations was concentrated in net profit. In guidance issued on October 8, the company had forecast sales of about 195 trillion won and operating profit of 107.4 trillion won. Actual results therefore exceeded its prior sales estimate, while operating profit came in at the level the company had set.
Samsung's Device Solutions division, which includes its semiconductor business, posted revenue of 147.1 trillion won and operating profit of 106.5 trillion won in the third quarter, the company said. Samsung attributed the record performance in its memory business to an AI-focused product mix, capacity constraints and strong server demand that lifted market prices. “Strong server demand momentum led to higher market prices across all applications,” it said in a statement. It also pointed to expanded sales of fourth-generation high-bandwidth memory and demand for server solid-state drives. Device Solutions accounted for the largest share of the company's quarterly operating profit.
By contrast, Samsung's Device eXperience division, which includes consumer-facing businesses, posted an operating loss of 0.8 trillion won, despite an 8% increase in revenue from the previous quarter, according to the statement. The result highlights the divergence between the group's chip and consumer businesses. Samsung's capital expenditure totaled 29 trillion won in the third quarter, while the company expects total spending in 2026 to reach about 84.4 trillion won. The spending reflects the scale of investment Samsung is directing toward expanding production capacity as a large part of its results rests on AI-related memory demand. Shareholder returns remain in investors' focus: the company declared quarterly cash dividends of 4,601 won per common share and 4,601 won per preferred share, totaling 30 trillion won.
In markets, Samsung shares fell more than 5% in trading on October 29, while the Kospi declined 2.9%, Bloomberg reported in an article published by The Edge Singapore. Bloomberg described the move as a reversal of the previous day's gain and linked it to investor concerns about earnings details and the sustainability of AI spending. Another reading during the session showed the index down 2.2% at 5,880.25 points and Samsung shares down 5.4%, while SK Hynix shares rose 1.6%, according to the Associated Press. The figures reflect readings during the session, not closing prices. EL7 data showed Samsung shares closing at 4524 on October 28, without specifying a currency, the day before the market moves cited above.
Samsung expects fourth-quarter memory demand to be supported by investment in AI infrastructure, alongside products tied to new CPU and GPU platforms. It added that demand for QLC SSDs is linked to the expansion of personal AI agent services. Further out, the company expects capital expenditure on AI infrastructure to reach a historic level in 2027, and AI-driven memory demand to exceed industry supply compared with 2026. Samsung said memory demand growth “will be concentrated around products related to new CPU and GPU platforms.” The company scheduled its third-quarter 2026 earnings call for October 29, 2026, at 10:00 a.m. Korea time.