Samsung posts record Q3 operating profit driven by chips

Samsung reported a record operating profit of KRW 107.4 trillion for Q3 2026, becoming the first technology company to exceed a quarterly profit of $75 billion. The company said most of the gains came from its semiconductor business as demand for memory and storage for AI customers climbed.

Semiconductor division drives record results

Consolidated Q3 revenue was KRW 195.3 trillion, the company reported, with year on year revenue growth of 126 percent and a 780 percent surge in operating profit compared with the prior year. Device Solutions, the semiconductor unit that designs and manufactures chips, generated KRW 147.1 trillion in revenue and KRW 106.5 trillion in operating profit.

Samsung said the Device Solutions division supplied high-end memory and storage products to AI customers including AMD and Nvidia, and scaled up sales of HBM4 chips and server SSDs for AI data centers. Within Device Solutions, Samsung Foundry expects double-digit revenue growth in Q4 2026 and plans to start production at its new fabrication plant in Taylor, Texas, in 2027. System LSI posted revenue and profit growth driven by increased shipments of Exynos system on chip processors and 200 megapixel camera sensors.

Division-level revenue and profit figures

• Device Solutions: revenue KRW 147.1 trillion, operating profit KRW 106.5 trillion
• MX (smartphones and networks): revenue KRW 37.7 trillion, operating loss KRW 0.6 trillion
• Display: revenue KRW 8.0 trillion, operating profit KRW 1.1 trillion
• Digital Appliances and Visual Display (home appliances and TVs): combined revenue KRW 13.9 trillion, operating loss KRW 0.2 trillion

Smartphones, displays and appliances

Samsung MX, which covers smartphones and cellular network infrastructure, reported KRW 37.7 trillion in revenue but an operating loss of KRW 0.6 trillion. The company attributed the division's loss to rising memory chip costs despite continued demand for high-end phones. Samsung said it expects sales to improve later in the year with launches including the Galaxy S26 series and the Galaxy Z Fold 8 series.

Samsung Display reported KRW 8.0 trillion in revenue and KRW 1.1 trillion in operating profit. The company supplied OLED panels for Apple devices it named as the iPhone Duo, iPad Mini, iPad Pro, and MacBook Pro, and said it aims to increase the mix of OLED panels for premium smartphones such as foldables in 2027.

Samsung noted that its home appliances and TV divisions recorded combined revenue of KRW 13.9 trillion and an operating loss of KRW 0.2 trillion, with TV sales falling after the conclusion of the 2026 FIFA World Cup. The company said it has been the world's largest TV brand for 20 consecutive years.

Capital expenditure and near-term outlook

Samsung expects full-year capital expenditure to be about KRW 84.4 trillion, of which KRW 76.8 trillion will be allocated to the semiconductor division to meet demand for AI and high performance computing products. After issuing earnings estimates earlier in the month, the company published the Q3 results showing consolidated revenue of KRW 195.3 trillion and the record KRW 107.4 trillion operating profit, figures the company said exceed previous company records.