Samsung reports record quarterly profit driven by memory business

Samsung Electronics has just announced another all-time high quarterly financial result, reporting a 14% quarter-on-quarter revenue growth compared to Q3. According to the company's press release, Samsung is officially the world's first tech company to exceed KRW 100 trillion in quarterly operating profit, specifically pulling in KRW 107.4 trillion.

• Quarterly revenue grew by 14% compared to the previous period.
• Operating profit reached a record KRW 107.4 trillion driven by memory chips.
• Capital expenditure increased to KRW 29 trillion, mostly poured into semiconductor divisions.
• The mobile MX division reported an operating loss of KRW 0.6 trillion while planning major flagship releases.

Semiconductor growth and memory dominance

At the heart of this phenomenal growth is the Device Solutions (DS) division, which manufactures memory chips. It posted KRW 147.1 trillion in consolidated revenue and a staggering KRW 106.5 trillion in operating profit. Samsung attributes this success to a major surge in HBM4 sales and high-performance server SSDs.

To meet soaring market demands, Samsung increased its quarterly capital expenditure to KRW 29 trillion, allocating KRW 27.2 trillion directly to the DS division. Looking ahead, the company expects AI-driven demand to heavily surpass the industry's supply capabilities compared to previous years, continuing the aggressive investment strategy.

Mobile division strategy and foundry expansion

Meanwhile, the Mobile eXprience (MX) and Networks Business reported a combined consolidated revenue of KRW 37.7 trillion and an operating loss of KRW 0.6 trillion. However, MX plans to rally in the upcoming shopping season by pushing the Galaxy Z Fold8, Z Fold8 Ultra, and the Galaxy S26 series alongside new ecosystem products.

Samsung's foundry business, Samsung LSI, also saw revenue growth thanks to flagship chipsets and 200MP image sensors. With the Texas fab in Taylor expected to begin operations next year, the company anticipates strong demand for its upcoming 2nm and 4nm nodes to further power revenue growth.

Implications for the market and shareholders

These milestone financial results highlight the immense profitability of hardware components tailored for artificial intelligence and data centers. Additionally, Samsung announced generous cash dividends of KRW 4,601 per common and preferred share, aiming to return a total of KRW 90-110 trillion to shareholders through dividends and substantial share repurchase programs.