Samsung Electronics Reclaims 10 Trillion Won in Q3 Operating Profit... Revenue Surpasses 80 Trillion Won for the First Time

Operating Profit at 12.1 Trillion Won, Revenue at 86 Trillion Won
Operating Profit Up 31.8% Year-on-Year
Samsung: "Improved Memory Market Conditions Drove Results"

Samsung Electronics recorded an operating profit of 12.1 trillion won in the third quarter of this year, reclaiming the 10 trillion won mark. For the first time, quarterly revenue surpassed the 80 trillion won threshold.

On October 14, Samsung Electronics announced that its consolidated operating profit for the third quarter of this year reached 12.1 trillion won, a 31.81% increase compared to the same period last year. Revenue amounted to 86 trillion won, up 8.72% year-on-year. Both revenue and operating profit exceeded market expectations.

This revenue figure marks the highest quarterly result in the company’s history, and the operating profit is the highest since the second quarter of 2022 (14.1 trillion won). Quarterly operating profit had previously reached 10.44 trillion won in the second quarter of last year, but dropped to the 9 trillion won range in the following third quarter.

This performance improvement appears to have been driven by the recovery of the Device Solutions (DS) division, which is responsible for semiconductors, as well as the successful launch of the Galaxy Z Fold and Flip 7 series in July. Market analysts attribute the improved results to rising prices for general-purpose DRAM, increased shipments of high-bandwidth memory (HBM), and a reduction in losses in the system semiconductor sector. A Samsung Electronics official explained, "The overall performance improved significantly due to favorable conditions in the memory market," adding, "We estimate that the expansion in demand for DRAM and server SSDs, as well as increased sales of HBM3E, led to a substantial improvement in results."

There are also reports that the quarterly loss for the foundry (semiconductor contract manufacturing) and system semiconductor (LSI) business units, which had exceeded 2 trillion won, has been reduced to around 1 trillion won. Samsung Electronics explained that the foundry business’s operating rate has entered a recovery phase, resulting in a smaller deficit. The Device Experience (DX) division, which oversees smartphones, TVs, and home appliances, is expected to see the Mobile Experience (MX) business unit post an operating profit in the 3 trillion won range, thanks to the success of the Galaxy Z Fold and Flip 7 series.

While the outlook for the fourth quarter remains generally positive, there are also concerns about significant uncertainty due to ongoing US-China tensions and tariffs.