Samsung Electronics has reported its highest quarterly earnings on record, with Samsung AI chip demand and server storage doing most of the heavy lifting rather than handsets. For the third quarter of 2026, the South Korean firm booked KRW 195.3 trillion (about $146 billion) in revenue and KRW 107.4 trillion (about $80.5 billion) in operating profit. Revenue rose 14% from the previous quarter, and operating profit rose about 20%. Samsung said it is the first technology company to report more than KRW 100 trillion in operating profit in a single quarter.
Memory chips, not phones, set the pace
Almost all of that profit came from Device Solutions (DS), the division that makes semiconductors and memory chips. DS recorded KRW 147.1 trillion in revenue and KRW 106.5 trillion in operating profit, both new quarterly highs. Samsung linked the surge to high-bandwidth memory known as HBM4, used in artificial intelligence systems, and solid-state drives (SSDs) built for servers. It said HBM4 sales rose sharply as technology firms expanded AI infrastructure, and that strong demand also lifted memory prices across product lines.
The company expects the pattern to continue in the fourth quarter as new central processing unit (CPU) and graphics processing unit (GPU) platforms raise need for advanced memory. Looking to 2027, it expects AI-related memory demand to grow faster than industry supply, which could keep memory availability tight. It has stated that increasing AI-driven demand will far exceed industry supply compared with 2026.
Handsets still in the red
The Mobile eXperience (MX) and Networks businesses told a different story. Together they reported KRW 37.7 trillion in revenue and an operating loss of KRW 0.6 trillion. That was an improvement on the previous quarter’s KRW 33.2 trillion in revenue and KRW 0.7 trillion operating loss. Samsung said smartphone sales improved after new flagship launches, including foldable models, but higher component costs still weighed on margins.
For the final quarter of 2026, it plans to push sales of the Galaxy S26 series, Galaxy Z Fold8, and Galaxy Z Fold8 Ultra during the holiday shopping season, and to add more products to its device ecosystem. In 2027, it intends to focus on premium smartphones and upgrade hardware and design in its flagship lineup.
Factories, displays, and shareholder cash
Samsung also reported better results in chip manufacturing, with stronger sales of flagship processors and 200-megapixel camera sensors. It expects double-digit revenue growth in its foundry (contract chip-making) business in the fourth quarter as it raises output of 4-nanometre neural processing units and other advanced chips, and it sees further upside from 2-nanometre and 4-nanometre processes. A new semiconductor plant in Taylor, Texas, is expected to start operations in 2027.
Quarterly capital spending rose to KRW 29 trillion, up KRW 12.2 trillion from the prior quarter, with KRW 27.2 trillion going to semiconductors and KRW 1.1 trillion to Samsung Display. Samsung Display reported KRW 8 trillion in revenue and KRW 1.1 trillion in operating profit, helped by premium phone panels and gaming monitors.
Samsung announced a third-quarter cash dividend of KRW 4,601 per common and preferred share, for a total payout of KRW 30 trillion. For the full year, it plans to return between KRW 90 trillion and KRW 110 trillion to shareholders through cash dividends and share buybacks, and expects to settle remaining return plans in January 2027.
Timeline: what has happened so far
- Previous quarter (before Q3 2026): MX and Networks together posted KRW 33.2 trillion in revenue and a KRW 0.7 trillion operating loss.
- Third quarter 2026: Group revenue and profit hit records; DS set new highs; phone-related units narrowed their loss to KRW 0.6 trillion.
- Final quarter 2026 (planned): Higher memory demand expected with new CPU and GPU platforms; holiday push for Galaxy S26 and Fold8 models; foundry revenue growth targeted.
- January 2027: Remaining shareholder return plans expected to be finalized.
- 2027: Taylor, Texas chip plant expected to begin operations; AI-related memory demand seen growing faster than supply.
Aasan alfaaz mein
Samsung ne teesre quarter mein apna sab se zyada munafa kamaya hai. Yeh munafa zyadatar AI ke liye memory chips aur server storage se aaya, phones se nahi. Phone wala hisa ab bhi thora nuqsan mein hai, lekin pehle se behtar hai. Jo log Galaxy phones kharidte hain, unke liye company holiday season mein naye S26 aur foldable models bechne ki koshish karegi.
