Samsung Is Making Another Record-Breaking Profit Quarter, but Not From Selling Phones

Samsung Electronics has documented its highest-ever quarterly earnings, driven by growing demand for artificial intelligence (AI) memory chips and server storage.

Key points

• The division generated KRW 147.1 trillion in revenue and KRW 106.5 trillion in operating profit, setting new quarterly records.
• The Mobile eXperience (MX) and Networks businesses documented combined revenue of KRW 37.7 trillion and an operating loss of KRW 0.6 trillion.
• While KRW 1.1 trillion was allocated to Samsung Display, of that amount, KRW 27.2 trillion went toward its semiconductor business.
• Samsung Owners Should Avoid One UI 9.0 Software Update for Now.
• Its new semiconductor manufacturing facility in Taylor, Texas, is projected to commence operations in 2027.

For context, the South Korean technology giant recorded KRW 195.3 trillion (approximately $146 billion) in revenue and KRW 107.4 trillion (around $80.5 billion) in operating profit for the third quarter of 2026.

While operating profit rose approximately 20%, revenue rose 14% compared with the previous quarter.

According to Samsung, it is the first technology firm to report more than KRW 100 trillion in operating profit in a single quarter. AI Memory Chips Drive Record Profits.

Samsung's Device Solutions (DS) division. It produces semiconductors and memory chips, accounted for most of the company's earnings.

Meanwhile, the division generated KRW 147.1 trillion in revenue and KRW 106.5 trillion in operating profit, setting new quarterly records.

Samsung attributed the solid performance to climbed demand for high-bandwidth memory (HBM4). It is applied in AI systems, and solid-state drives (SSDs) designed for servers.

For context, the firm significantly climbed HBM4 sales as technology firms continued expanding their AI infrastructure. Solid demand additionally pushed memory rates higher throughout different product categories.

Samsung expects the trend to continue into the fourth quarter as new CPU and GPU platforms growth demand for advanced memory products.

Looking ahead to 2027, the firm expects AI-related memory demand to grow faster than industry supply, potentially maintaining pressure on memory availability. Samsung Launches Luxury Foldable Phone With Gold Finish. Samsung's Smartphone Business Records Losses.

While its semiconductor business achieved record earnings, Samsung's smartphone division continued to struggle with profitability.

For context, the Mobile eXperience (MX) and Networks businesses documented combined revenue of KRW 37.7 trillion and an operating loss of KRW 0.6 trillion.

When the divisions generated KRW 33.2 trillion in revenue and recorded a KRW 0.7 trillion operating loss, this was an improvement from the previous quarter.

Samsung remarked smartphone sales improved after the introduction of new flagship devices, including its foldable models. Nevertheless, higher component costs continued to affect profitability.

For the final quarter of 2026, Samsung intends to rise sales of the Galaxy S26 series, Galaxy Z Fold8, and Galaxy Z Fold8 Ultra during the holiday shopping season.

Notably, the firm additionally intends to introduce further products within its device ecosystem.

In 2027, Samsung intends to focus on premium smartphones and introduce hardware and design improvements to strengthen its flagship lineup. Samsung Expands Investment in Advanced Chips. Samsung additionally noted improvements in its chip manufacturing business.

Sales of flagship processors and 200MP camera sensors rose during the quarter.

In practice, the firm expects further expansion from advanced semiconductor manufacturing technologies, particularly its 2nm and 4nm production processes.

Samsung anticipates double-digit revenue expansion in its foundry business during the fourth quarter as it increases production of 4nm neural processing units and other advanced chips.

Meanwhile, Samsung rose its quarterly capital expenditure to KRW 29 trillion, up KRW 12.2 trillion from the previous quarter.

Samsung Owners Should Avoid One UI 9.0 Software Update for Now. Display Business Reports Higher Earnings.

Samsung Display Corporation documented KRW 8 trillion in quarterly revenue and KRW 1.1 trillion in operating profit.

For context, the division benefited from solid demand for premium smartphone displays and climbed sales of gaming monitors.

Although external factors could limit earnings expansion, samsung expects seasonal demand and new product launches to backing display sales during the final quarter.

For 2027, the firm aims to growth its focus on premium displays, including foldable smartphone panels. Samsung Announces Major Shareholder Payout.

Samsung additionally unveiled a third-quarter cash dividend of KRW 4, 601 per common and preferred share. The total dividend payout will amount to KRW 30 trillion.

For the full year, Samsung intends to return between KRW 90 trillion and KRW 110 trillion to shareholders through a combination of cash dividends and share repurchases.

Meanwhile, the firm expects to finalize its remaining shareholder return aims in January 2027.

Samsung's latest results highlight the growing importance of AI memory chips to its business, even as higher costs continue to put pressure on its smartphone operations. Stay Connected with ProPakistani.

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Taken together, the developments around samsung Is Making Another Record-Breaking Profit Quarter, but Not From Selling Phones point to a situation that is still moving, and the coming days should bring more clarity.