Samsung Posts Record Operating Profit of 107.4 Trillion Won as Memory Stocks Face Scrutiny
Key Facts
Samsung Electronics reported record revenue of 195.3 trillion won and operating profit of 107.4 trillion won for the third quarter ended September 30, 2026, in results that highlighted the strength of its memory business as investors scrutinized the sector’s outlook. The company’s revenue rose 14% from the previous quarter, according to its statement, while its memory business posted record revenue and operating profit. Still, the record figures did not prevent U.S. memory stocks from falling in premarket trading after the results. Micron shares fell 2.6% in that trading, and SanDisk shares declined by the same amount, according to Investing.com data. The reaction came as the market digested Samsung’s results and awaited further signs of demand and supply in the AI chip market.
Samsung attributed the strength of its memory business to higher server demand, saying this had driven market prices higher across applications. It added that its memory product mix focused on AI applications amid capacity constraints. The company said, "Strong server demand led to higher market prices across all applications." These factors form the backdrop to the record results, with server-related demand coinciding with limited production capacity. The Associated Press said the company linked its outlook to accelerating demand for memory chips used in AI systems. Samsung expects AI-driven demand growth to exceed industry supply in 2027 as the AI ecosystem expands.
Samsung’s results follow SK hynix’s third-quarter results, while the company’s statement indicates that memory demand has extended beyond the current period. SK hynix said it had signed long-term agreements covering more than 50% of its production capacity for 2027 and 2028. This provides contractual visibility for a large portion of future output, as companies focus on meeting the needs of AI applications. The company said, "Long-term agreements have secured more than 50% of production capacity for 2027 and 2028." In parallel, Samsung and SK hynix announced plans in June to invest a total of 800 trillion won in a new chipmaking complex in southwestern South Korea. The investment plans and supply agreements put the expansion of future production capacity at the center of the market’s attention.
But the sector’s strong performance does not eliminate stocks’ sensitivity to expectations, as investors monitored details of the results and guidance alongside revenue and profit figures. EL7 data showed Micron shares closed at $940.62 on October 29, after closing at $983.23 on October 28. Sandisk shares closed at $1,404.77 on October 28, a figure for the previous session that does not establish the stock’s movement on October 29. In U.S. premarket trading, SanDisk shares fell 2.6%, according to Investing.com data. These prices distinguish specific daily closes from premarket movement, which reflects trading before the regular session. The available closing data also do not establish that either stock fell 5% at the close.
Attention now turns to Sandisk’s first-quarter results for fiscal 2027, which the company scheduled for release on October 29, 2026, at 1:30 p.m. Pacific time. The announcement could add a direct reading from a company specializing in storage products to the picture of memory demand painted by Samsung’s results. Samsung also said its expected capital expenditure for 2026 was about 84.4 trillion won, including 76.8 trillion won allocated to its Device Solutions division. This planned spending offers another indication of how companies are responding to chip demand, alongside the joint investment plans announced by Samsung and SK hynix. Samsung said, "Full-year 2026 capital expenditure is expected to be about 84.4 trillion won," including the announced allocation for its Device Solutions division.