▲ Samsung Electronics
As Samsung Electronics recorded record-high earnings for the third consecutive quarter, its semiconductor business alone generated over KRW 89 trillion in operating profit.
However, the finished goods business posted a deficit of around KRW 800 billion, marking its first-ever loss since the company's founding, due to soaring component costs.
While forecasting continued earnings growth in the second half of the year driven by strong semiconductor demand, Samsung plans to strengthen the competitiveness of its finished goods business and overhaul its operational structure amid a challenging business environment.
Samsung Electronics announced today (July 30) in a regulatory filing that its consolidated operating profit for the second quarter of this year was provisionally tallied at KRW 89.4924 trillion, up 1,813.8% from the same period last year.
Revenue rose 130% year-on-year to KRW 171.4995 trillion.
Net profit surged 1,299.9% to KRW 71.6245 trillion.
The operating profit surpassed the market consensus of KRW 84.1894 trillion compiled by Yonhap Infomax by 6.3%.
Both operating profit and revenue broke record quarterly highs for the third straight quarter.
Earnings per share for both common and preferred stocks rose 52% from the previous quarter to KRW 10,849, reaching the highest level among global tech companies.
Currency effects, driven by a strong dollar, had a positive impact of approximately KRW 3.1 trillion on total company operating profit compared to the previous quarter.
Research and development (R&D) expenses reached a record high of KRW 16 trillion.
The Device Solutions (DS) Division, which oversees the semiconductor business, renewed record highs with revenue of KRW 127.5 trillion and an operating profit of KRW 89.2 trillion.
The memory business achieved its largest quarterly earnings ever by actively responding to server-oriented products amid strong demand driven by the spread of agentic artificial intelligence (AI).
It strengthened its technological competitiveness by expanding the supply of HBM4 with differentiated performance and shipping the industry's first HBM4E samples.
Despite a general decline in demand, System LSI achieved its highest first-half revenue ever through expanded sales of mobile System on Chips (SoCs) and sensors.
The foundry business improved its performance with increased revenue driven by product demand centered around HBM base dies and customers in the Americas.
The Device Experience (DX) Division, responsible for finished goods, posted revenue of KRW 48 trillion and an operating loss of KRW 800 billion due to the impact of rising component costs.
Mobile eXperience (MX), which handles the mobile business, grew its revenue year-on-year driven by solid flagship product sales centered on the Galaxy S26 series and strong sales of the A-series, but operating profit decreased due to expanding cost burdens.
Network performance improved compared to both the previous year and the previous quarter on rising overseas revenue.
Visual Display (VD), the TV business unit, improved its revenue and profitability compared to the previous year by proactively responding to demand from major sporting events and introducing new products.
Digital appliances saw revenue grow compared to the previous quarter in response to the peak air conditioner season, but profits fell due to increased cost burdens.
Harman achieved KRW 4.6 trillion in revenue and KRW 400 billion in operating profit, driven by expanded automotive electronics revenue and strong sales of personal audio products such as portables.
Display recorded revenue of KRW 7.5 trillion and an operating profit of KRW 700 billion, with the small and medium-sized panel business improving performance from the previous quarter on solid demand for high-end mobile products.
The large-sized panel business saw sales volume and revenue increase compared to the previous quarter due to the expansion of the gaming monitor market.
Samsung Electronics expects total company earnings to grow in the second half of the year as semiconductor demand remains strong.
The DS Division is projected to sustain its upward earnings trend due to strong demand stemming from the spread of agentic AI.
Samsung plans to lead the market by expanding sales of high-performance HBM4E, HBM4, DDR5, SOCAMM2, and eSSD.
The foundry business plans to strengthen its mid-to-long-term growth foundation by commencing mass production of its second-generation 2-nanometer mobile process and expanding orders in advanced nodes, AI, and high-performance computing (HPC).
The DX Division plans to simultaneously pursue business competitiveness enhancement and operational structural reform, as a challenging business environment is expected to persist due to expanding global uncertainties and rising component costs.
MX plans to drive market share growth by expanding sales of high-value-added products such as the top-tier Ultra model and the new foldable Z8 series, while defending profitability through swift responses to market changes.
VD plans to preempt year-end peak season demand by expanding sales of AI-based new products and strengthening strategic partnerships with channel partners.
Digital appliances also aim to improve profitability through expanded sales of AI products, channel diversification centered on high-margin businesses, and differentiated product competitiveness.
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