Samsung Electronics announced its highest ever quarterly earnings, thanks to rising demand for artificial intelligence (AI) memory chips and server storage. The South Korean group posted KRW 195.3 trillion in revenue (about $146 billion) and KRW 107.4 trillion in operating profit (around $80.5 billion) for the third quarter of 2026. Revenue rose 14% from the prior quarter and operating profit climbed roughly 20%. Samsung said it is the first tech firm to generate more than KRW 100 trillion in operating profit in a single quarter.
AI Memory Chips Drive Record Profits
The Device Solutions (DS) division, which makes semiconductors and memory chips, supplied most of the earnings. It delivered KRW 147.1 trillion in revenue and KRW 106.5 trillion in operating profit, both new quarterly highs. Samsung linked the surge to stronger demand for high-bandwidth memory (HBM4) used in AI systems and server-grade solid-state drives (SSDs). Sales of HBM4 rose sharply as tech firms expanded AI infrastructure, and higher memory prices lifted earnings across product lines. The company expects the trend to continue into Q4 as new CPU and GPU platforms boost demand for advanced memory. Looking to 2027, Samsung projects AI-related memory demand to outpace industry supply, keeping pressure on availability.
Samsung's Smartphone Business Records Losses
Despite the semiconductor boom, the mobile side kept losing money. The Mobile eXperience (MX) and Networks units together generated KRW 37.7 trillion in revenue but posted an operating loss of KRW 0.6 trillion. That improves on the prior quarter's KRW 33.2 trillion revenue and KRW 0.7 trillion loss. Samsung said sales rose after launching new flagship phones, including foldable models, yet higher component costs hurt profitability. For the final quarter of 2026, the firm will push the Galaxy S26 series, Galaxy Z Fold8 and Z Fold8 Ultra during the holiday season and add more products to its device ecosystem. In 2027, Samsung plans to focus on premium smartphones with hardware and design upgrades to strengthen its flagship range.
Samsung Expands Investment in Advanced Chips
The chip-making arm also showed gains, with higher sales of flagship processors and 200 MP camera sensors. Samsung expects further growth from its 2 nm and 4 nm processes and forecasts double-digit revenue growth in the foundry business in Q4 as it ramps up 4 nm neural-processing units and other advanced chips. Its new semiconductor fab in Taylor, Texas, is due to start operating in 2027. Capital spending rose to KRW 29 trillion, up KRW 12.2 trillion from the prior quarter, with KRW 27.2 trillion directed to semiconductors and KRW 1.1 trillion to Samsung Display.
Display Business Reports Higher Earnings
Samsung Display Corp. posted KRW 8 trillion in revenue and KRW 1.1 trillion in operating profit. Strong demand for premium smartphone screens and gaming monitors lifted results. The company expects seasonal demand and new product launches to sustain sales in the final quarter, though external factors could curb earnings growth. For 2027, Samsung aims to boost premium display output, including foldable smartphone panels.
Samsung Announces Major Shareholder Payout
The group declared a third-quarter cash dividend of KRW 4,601 per common and preferred share, totaling KRW 30 trillion in payouts. For the full year, Samsung plans to return between KRW 90 trillion and KRW 110 trillion to shareholders via cash dividends and share buybacks, with the remaining plans to be finalised in January 2027.
Samsung's latest results underline the growing importance of AI memory chips to its business, even as higher costs continue to pressure its smartphone operations.
