Samsung Electronics Posts Record Q2 Operating Profit of 89.4 Trillion Won, Surpassing Big Tech Milestones

Samsung Electronics has continued its streak of record-breaking performance for the third consecutive quarter, reporting 171 trillion won in revenue and 89.4 trillion won in operating profit for the second quarter of this year.

Despite the impact of nearly 20 trillion won in performance bonuses, the company recorded an operating profit in this quarter alone that is more than double its total for the entire previous year.

This figure exceeds the combined operating profit of Samsung Electronics over the three years from 2023 to 2025, a record unprecedented even among global big tech companies.

Samsung Electronics announced in a regulatory filing today (July 7) that its consolidated operating profit for the second quarter of this year was provisionally estimated at 89.4 trillion won, an increase of 1,810.3% compared to the same period last year.

Revenue reached 171 trillion won, up 129.3% from the same period last year.

This operating profit exceeded the market consensus of 84.1606 trillion won compiled by Yonhap Infomax by 6.2%.

With this, Samsung Electronics has achieved record-high revenue and operating profit for three consecutive quarters, starting from the fourth quarter of last year.

The operating profit for this single quarter alone is more than double the total for all of last year (43.6011 trillion won).

This also far surpasses the combined operating profit of 82.87 trillion won over the past three years: 6.57 trillion won in 2023, 32.7 trillion won in 2024, and 43.6 trillion won in 2025.

No other global big tech company has reached such a record, as the peak quarterly operating profits for Nvidia and Apple are approximately 53.5 billion dollars (about 82 trillion won) and 50.9 billion dollars (about 78 trillion won), respectively.

Only Saudi Aramco has recorded a higher quarterly operating profit, reaching 86.5 billion dollars (about 132 trillion won) in the second quarter of 2022 during the Ukraine war.

Notably, Samsung Electronics' latest performance reflects provisions for performance bonuses estimated at nearly 20 trillion won, accumulated over the previous and current quarters.

Therefore, some analysts suggest that if these provisions were excluded, the second-quarter operating profit would have significantly exceeded 100 trillion won, nearing 110 trillion won.

While performance by business division is not disclosed, the Device Solutions (DS) division, which oversees the semiconductor business, is believed to have accounted for virtually all of the company's total operating profit.

This is attributed to the deepening semiconductor supply shortage as global investment in artificial intelligence (AI) infrastructure continues to rise.

As AI demand expands beyond High Bandwidth Memory (HBM) to general-purpose memory, and the AI market extends from generative AI to physical AI and AI infrastructure, memory prices have remained strong.

The prevailing view in the industry is that this trend will continue at least until next year.

In particular, Samsung Electronics is enjoying greater benefits from this surge in demand, leveraging its position as the world's largest memory production capacity (CAPA).

Recently, the company has also been expanding the proportion of high-value products, such as becoming the first in the world to mass-produce and ship HBM4, the 6th generation of HBM.

Although some have recently raised concerns about a "peak-out," suggesting that the growth of the semiconductor industry might slow down in the near future, Samsung Electronics is continuing to sign long-term supply agreements (LTA) with big tech companies and is pursuing the expansion of its mid-to-long-term production capacity.

The market consensus for Samsung Electronics' annual operating profit this year, compiled by Yonhap Infomax, has been revised upward from 366 trillion won based on the last three months to 374 trillion won based on the last one month.

On the other hand, the Device eXperience (DX) division, which handles finished products, is analyzed to have remained relatively sluggish due to the continued cost burden from rising prices of core components such as semiconductors.

Securities firms estimate the operating profit for the Mobile (MX) and Network business units to be between 500 billion and 1 trillion won, and less than 100 billion won for the TV (VD) and Home Appliance (DA) business units, respectively.

Samsung Display is estimated to have recorded an operating profit of around 500 billion won, similar to the same period last year, while the automotive electronics subsidiary Harman is estimated to have recorded between 200 billion and 300 billion won.
※ Please note: This article was translated by AI and may contain errors.