Samsung Posts KRW 107.4 Trillion Quarterly Profit, a First for a Tech Company

Record quarter led by the chip division

In its results for the quarter ended Sept. 30, 2026, Samsung said consolidated revenue of KRW 195.3 trillion was another all-time quarterly high. Operating profit reached KRW 107.4 trillion.

The Device Solutions (DS) Division, which covers chips, posted KRW 147.1 trillion in revenue and KRW 106.5 trillion in operating profit. Its sales rose 15% quarter on quarter. The Memory Business set an all-time high for quarterly revenue and operating profit, according to Samsung, as it managed its product mix with a focus on AI products despite capacity constraints.

Samsung said strong server demand pushed market prices higher across all applications. The company also said it significantly scaled up sales of HBM4 and moved to meet growing demand for server SSDs.

The Device eXperience (DX) Division grew revenue 8% quarter on quarter but recorded an operating loss of KRW 0.8 trillion.

Samsung's outlook for memory, System LSI and Foundry

For the fourth quarter of 2026, the Memory Business expects competition for AI leadership to keep driving infrastructure investment. Samsung said memory demand growth should center on products tied to new CPU and GPU platforms, while surging QLC SSD demand will be linked to the expansion of personal AI agent services. It plans to increase sales of HBM, server DRAM and SSDs, and to raise supply of high-speed server DDR5 products and QLC SSDs.

Looking to 2027, Samsung expects AI infrastructure capital expenditure to reach a historic level. It said AI-driven demand will far exceed industry supply compared with 2026, and that it plans to secure multi-year contracts to build a stable sales base.

The System LSI Business grew revenue on mass production of systems-on-a-chip and image sensors for new models launched in the second half. Its custom SoC business secured projects through new customer partnerships. In 2027 it aims to expand flagship SoC sales and diversify image sensors into non-mobile applications.

The Foundry Business reported notable improvements in revenue and earnings, helped by HBM base-die sales growth, expanded advanced-node sales and continued order wins centered on 2nm HPC customers, including major hyperscalers. For Q4 2026 it plans double-digit revenue growth. It also expects its new fab in Taylor, Texas, to strengthen global supply capabilities once operations begin.

Displays, mobile and home appliances

Samsung Display Corporation posted KRW 8.0 trillion in revenue and KRW 1.1 trillion in operating profit. Earnings in small and medium displays improved on solid demand for high-end mobile products, while large displays gained from the gaming monitor market. For 2027, SDC expects continued market weakness amid uncertainty.

The MX and Networks Businesses together posted KRW 37.7 trillion in revenue and an operating loss of KRW 0.6 trillion. Revenue rose both quarter on quarter and year on year, mainly on new flagship launches including foldables, but earnings fell year on year because of cost pressures. For Q4, the MX Business plans to focus on the Galaxy S26 series, Galaxy Z Fold8 Ultra and Z Fold8. The Networks Business saw lower earnings on weaker North American and high-margin software sales.

The Visual Display and Digital Appliances Businesses combined for KRW 13.9 trillion in revenue and an operating loss of KRW 0.2 trillion. VD revenue fell after major sporting events ended, and DA earnings declined on higher raw material and logistics costs. Harman reported improved earnings on expanded audio and automotive sales, with a boost from non-recurring U.S. tariff refunds.

What the results mean

The figures show how heavily Samsung's profit now rests on memory and chips tied to AI. The DS Division's KRW 106.5 trillion operating profit accounts for nearly all of the group's KRW 107.4 trillion, while several consumer-facing units posted losses or lower earnings. Samsung's own guidance points to continued AI infrastructure spending into 2027, though it also flags weak display demand and flat or slightly declining TV demand next year.