Samsung Electronics reported a record third-quarter operating profit of 107.44 trillion won, driven by AI-related memory chip demand, but shares declined as results met or fell short of high expectations.
Samsung Electronics reported record third-quarter results on Thursday, posting an operating profit of 107.44 trillion won, a 783.11% increase year-on-year. Despite these record figures, the company's shares fell in Seoul trading, dropping as much as 6% at one point before closing 4.13% lower.
Samsung reported revenue of 195.25 trillion won for the third quarter, up 126.88% from the previous year. The company stated it has become the first global technology company to exceed 100 trillion won in quarterly operating profit, marking its fourth consecutive quarter of record revenue and profit.
The semiconductor business, specifically the Device Solutions (DS) division, was the primary driver of these results. The division reported revenue of 147.1 trillion won and an operating profit of 106.5 trillion won. This growth was attributed to strong demand for AI-related memory chips, including high-bandwidth memory (HBM4) and server solid-state drives (SSDs).
However, some market analysts noted that the semiconductor profit fell short of certain expectations. According to reports from Bloomberg and other outlets, some market participants had expected the DS division's operating profit to approach 110 trillion won.
The Device eXperience division, which includes mobile, home appliances, and electronics sales, reported an operating loss of 800 billion won for the third quarter. This follows a 3.5 trillion won profit in the same quarter last year. The unit was pressured by rising costs for memory and electronic components driven by AI-related demand.
Samsung announced a third-quarter cash dividend of 30 trillion won, which equates to 4,601 won per common and preferred share. The company also stated it plans to return between 55 trillion and 75 trillion won to shareholders this year through dividends and share buybacks. The board is scheduled to finalize specific execution plans at a meeting in late January 2027.
Looking toward 2027, Samsung expects AI infrastructure investment to accelerate, which may lead to tighter memory supply. The company plans to increase sales of HBM and begin mass production of HBM4E in 2027. To meet increasing demand, Samsung forecast 2026 capital expenditures of 84.4 trillion won, up from 52.8 trillion won in 2025.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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