Samsung Electronics Q3 Operating Profit Hits Record

Samsung Electronics posted an operating profit of KRW 107.4 trillion for the third quarter of 2026, the company announced on October 29, saying it had become the world’s first tech company to clear KRW 100 trillion in quarterly operating profit. Consolidated revenue rose 14% from the previous quarter to KRW 195.3 trillion, which the company called “another all-time quarterly high.”

The figures were in line with the preliminary guidance Samsung issued on October 8, when it estimated revenue of about KRW 195 trillion and operating profit of about KRW 107.4 trillion. Samsung’s guidance release listed operating profit of KRW 12.17 trillion for the third quarter of 2025 and KRW 89.49 trillion for the second quarter of 2026.

According to coverage of the earnings call by BigGo Finance, net profit came in at KRW 75.1 trillion, up about 5% from the second quarter, and the operating margin reached 55%. BigGo also reported that weaker US dollar, euro and other currencies reduced operating profit by around KRW 10 trillion from the prior quarter.

Chips drive the quarter

The Device Solutions (DS) division, which houses the chip business, generated KRW 147.1 trillion in revenue and KRW 106.5 trillion in operating profit, accounting for nearly all of the group’s earnings. Samsung said its memory business set all-time highs for both quarterly revenue and operating profit, with sales up 15% quarter-on-quarter across the division.

Samsung’s consumer-facing Device eXperience (DX) division booked an operating loss of KRW 0.8 trillion despite an 8% rise in revenue from the previous quarter. Mobile and networks posted combined revenue of KRW 37.7 trillion and a KRW 0.6 trillion operating loss, which the company attributed to cost pressure. Visual display and digital appliances lost KRW 0.2 trillion on revenue of KRW 13.9 trillion, while Samsung Display earned KRW 1.1 trillion on revenue of KRW 8.0 trillion. Harman’s earnings improved, helped by one-off US tariff refunds, Samsung said.

On the call, as reported by BigGo, memory sales executive Jaejune Kim said Samsung’s 2027 supply of high-bandwidth memory (HBM) is already sold out at agreed target prices. BigGo and Investing.com both reported that HBM4 sales more than tripled from the second quarter and made up 60% of HBM revenue.

KRW 30 trillion dividend

Samsung declared a quarterly dividend of KRW 4,601 per common and preferred share, totalling KRW 30 trillion. The company estimated total shareholder returns for 2026 at KRW 90 trillion to KRW 110 trillion, of which KRW 35 trillion has already been planned or completed. It said the remaining KRW 55 trillion to KRW 75 trillion will include a substantial share buyback and cancellation programme alongside cash dividends, with final amounts to be set at a board meeting scheduled for late January 2027.

Capital expenditure in the quarter was KRW 29 trillion, mostly in chips, and Samsung put its full-year 2026 spending at about KRW 84.4 trillion.

What’s next for Samsung

For the fourth quarter, Samsung said continued investment in AI infrastructure should support memory demand and that it plans to increase sales of HBM, server DRAM and SSDs. Its foundry unit is targeting double-digit revenue growth, while the display business expects only limited improvement. Samsung added that AI-driven demand in 2027 is expected to far outpace industry supply, and that its Taylor, Texas fab will begin operations next year.

Chief financial officer Park Soon-cheol told analysts that “supply constraints are expected to continue,” according to BigGo, which also reported that the company expects 2027 results to exceed those of 2026.

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