Samsung Posts Record Operating Profit of 107.4 Trillion Won, Surpassing 100 Trillion for First Time
Key Facts
Samsung Electronics reported operating profit of 107.4 trillion won in the third quarter of 2026, becoming the first technology company to exceed 100 trillion won in quarterly operating profit, according to the company. Consolidated revenue reached 195.3 trillion won, up 14% from the previous quarter and a quarterly record. Operating profit rose 17.9 trillion won quarter on quarter, while revenue increased by 23.8 trillion won, the company said. Final operating profit was in line with Samsung's preliminary guidance on October 8, which put it at about 107.4 trillion won, rather than analysts' consensus estimate. The company reported operating profit of 12.2 trillion won in the third quarter of 2025, representing an increase of nearly ninefold year on year.
Profit was concentrated in the Device Solutions division, which recorded revenue of 147.1 trillion won and operating profit of 106.5 trillion won. The division's profit thus came close to the company's total operating profit, while the memory business posted record quarterly revenue and profit. Samsung said strong server demand lifted market prices across applications, while capacity constraints led it to shift its product mix toward uses with stronger demand. The company added that it had significantly expanded sales of fourth-generation high-bandwidth memory chips and worked to meet server demand. It also said the Device Solutions division repeated its record quarterly results by expanding sales of those chips and responding to server demand.
Results were not limited to the memory division. Samsung said its foundry unit improved revenue and profit in the third quarter, and is targeting double-digit revenue growth in the fourth quarter of 2026 while continuing to improve profitability. By contrast, the Device eXperience division recorded revenue of 52.1 trillion won and an operating loss of 0.8 trillion won, according to the company's announcement in South Korea. The display division recorded revenue of 8 trillion won and operating profit of 1.1 trillion won. The company estimated that adverse foreign-exchange moves reduced operating profit by about 10 trillion won compared with the previous quarter, particularly in component businesses. It also spent 14.4 trillion won on research and development during the quarter and said it was continuing to invest to strengthen its future technological competitiveness.
Samsung's capital expenditure totaled 29 trillion won in the third quarter, including 27.2 trillion won for the Device Solutions division and 1.1 trillion won for the display division. The company expects total capital expenditure in 2026 to reach about 84.4 trillion won, including 76.8 trillion won for the Device Solutions division and 3.9 trillion won for displays. On shareholder returns, Samsung announced total cash dividends of 30 trillion won for the third quarter, equivalent to 4,601 won per common and preferred share. The company estimates total shareholder returns for 2026 at between 90 and 110 trillion won, and said 35 trillion won of that amount had been planned or already delivered. The expected remaining balance is between 55 and 75 trillion won and will include cash dividends, share buybacks and cancellations.
Samsung said AI-driven memory demand would significantly exceed industry supply in 2027 compared with 2026, as capital expenditure on AI infrastructure reaches a historic level. Customers are continuing to expand the infrastructure needed for AI applications, the company said. Samsung expected server and AI demand to remain strong in the fourth quarter and is targeting expanded sales of advanced memory. In the sector, SK Hynix reported revenue of 104.6155 trillion won and operating profit of 83.3338 trillion won in the third quarter on October 28. The Associated Press said Samsung and SK Hynix together control about two-thirds of the global memory market, and that Samsung's announcement came a day after its rival's.
In June, the two companies announced plans for a joint investment totaling 800 trillion won to build a new chipmaking complex in southwestern South Korea, according to the Associated Press. The agency reported a warning from the Bank of Korea that South Korea's trade-dependent economy, with its reliance on the chip sector, could face a deeper impact from any AI-related downturn. Despite the record profit, Samsung shares fell 4.5% on October 29, according to Investing.com, which attributed the move in part to net income of 75.21 trillion won, below Bloomberg's estimate of 89.06 trillion won. Reuters said investors remained cautious about the sustainability of AI spending. Samsung's board is scheduled to decide on its next shareholder-return policy, the final amount and plans to distribute the remaining 2026 returns at a meeting scheduled for late January 2027.