Samsung Electronics on Thursday reported third-quarter operating profit broadly in line with analysts' expectations as demand for advanced memory chips used in artificial intelligence applications continued to grow, but its shares traded 5% lower following the announcement. The South Korean tech giant said it became the first global technology company to top 100 trillion won in quarterly operating profit, posting record revenue and profit for a fourth straight quarter.
Revenue came in at 195.25 trillion won ($124 billion), against the 195.79 trillion won expected, while operating profit of 107.44 trillion won compared with the 107.66 trillion won forecast, according to LSEG SmartEstimates, which are weighted toward forecasts from analysts who are more consistently accurate. Revenue rose 126.88% year-on-year and 13.85% from the previous quarter, while operating profit climbed 783.11% from a year earlier.
The semiconductor business reported 147.1 trillion won in revenue and 106.5 trillion won in operating profit on strong demand for AI-related memory chips. The memory business achieved record quarterly revenue and operating profit, supported by a significant ramp-up in HBM4 sales and growing demand for server solid-state drives.
Samsung announced 30 trillion won in cash dividends for the third quarter, equivalent to 4,601 won per common and preferred share. It plans to return another 55 trillion to 75 trillion won to shareholders this year through dividends and share buybacks, with the board to finalise total shareholder returns and specific execution plans at a meeting scheduled for late January 2027.
Looking ahead, the company expects AI infrastructure investment to accelerate in 2027, with rising demand likely to further tighten memory supply. It plans to increase sales of advanced memory chips used in AI applications, secure long-term contracts, and lift sales of HBM, a type of high-performance memory used in AI chips, along with other memory products used in servers and data storage.
In the third quarter, Samsung Electronics and five of its affiliates announced a combined $1 billion investment in KKR-backed Helix Digital Infrastructure, with Samsung Electronics set to invest $500 million. The company also announced a partnership with French AI startup Mistral AI to use AI technologies in its semiconductor operations, including chip design and manufacturing, and led Mistral's Series D funding round.
Analysis
Why This Matters
- AI infrastructure spending is now the main engine of Samsung's earnings: its semiconductor business contributed 106.5 trillion won of the 107.44 trillion won quarterly operating profit, with memory chips for AI applications the driving force.
- The 5% share fall after a record quarter shows how high expectations have become for AI-linked earnings, with results that met forecasts still disappointing investors.
- Shareholders have significant returns ahead: 30 trillion won in third-quarter dividends, plus plans for another 55 trillion to 75 trillion won in dividends and buybacks this year, to be finalised at a board meeting in late January 2027.
Background
Samsung Electronics is the flagship of South Korea's Samsung group and one of the world's largest makers of memory chips, smartphones and consumer electronics. Its recent earnings have been powered by demand for high-bandwidth memory and other advanced chips used in AI data centres, with the third quarter marking a fourth straight period of record revenue and profit.
What to Watch
- The late January 2027 board meeting, where total shareholder returns and specific execution plans are to be finalised.
- Whether AI infrastructure investment accelerates in 2027 as Samsung expects, and whether rising demand tightens memory supply as forecast.
- Momentum for HBM4 and server solid-state drives, which the company credits for record results in its memory business.
Checked
12 claims in this story checked against 1 source: 12 supported.
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- SupportedSamsung shares were trading 5% lower following the announcement.US Top News and Analysis: “Following the announcement, Samsung shares were trading 5% lower.”
- SupportedSamsung posted record quarterly profit.US Top News and Analysis: “Samsung said it became the first global technology company to top 100 trillion won in quarterly operating profit, while posting record revenue and profit for a fourth straight quarter.”
- SupportedSamsung became the first global technology company to top 100 trillion won in quarterly operating profit.US Top News and Analysis: “Samsung said it became the first global technology company to top 100 trillion won in quarterly operating profit”
- SupportedStrong demand for AI-related memory chips drove the semiconductor business's revenue and operating profit.US Top News and Analysis: “Its semiconductor business reported 147.1 trillion won in revenue and 106.5 trillion won in operating profit, driven by strong demand for AI-related memory chips.”
- SupportedSamsung reported third-quarter operating profit broadly in line with analysts' expectations on Thursday, as demand for AI memory chips continued to grow.US Top News and Analysis: “South Korean tech giant Samsung Electronics on Thursday reported third-quarter operating profit that is broadly in line with analysts' expectations, as demand for advanced memory chips used in artificial intelligence applications continued to grow.”
- SupportedRevenue was 195.25 trillion won, compared with 195.79 trillion won expected.US Top News and Analysis: “Revenue: 195.25 trillion won ($124 billion) vs. 195.79 trillion won expected”
- SupportedOperating profit was 107.44 trillion won, compared with 107.66 trillion won forecast.US Top News and Analysis: “Operating profit: 107.44 trillion won vs. 107.66 trillion won expected”
- SupportedSamsung posted record revenue and profit for a fourth straight quarter.US Top News and Analysis: “while posting record revenue and profit for a fourth straight quarter.”
- SupportedRevenue rose 126.88% year on year and 13.85% from the previous quarter, while operating profit rose 783.11% year on year.US Top News and Analysis: “Samsung's revenue rose 126.88% year-on-year and 13.85% from the previous quarter, while operating profit rose 783.11% from a year earlier.”
- SupportedThe semiconductor business reported 147.1 trillion won in revenue and 106.5 trillion won in operating profit.US Top News and Analysis: “Its semiconductor business reported 147.1 trillion won in revenue and 106.5 trillion won in operating profit, driven by strong demand for AI-related memory chips.”
- SupportedSamsung announced 30 trillion won in third-quarter cash dividends, equal to 4,601 won per common and preferred share.US Top News and Analysis: “The company also announced 30 trillion won in cash dividends for the third quarter, equivalent to 4,601 won per common and preferred share.”
- SupportedSamsung plans to return another 55 trillion to 75 trillion won to shareholders this year, with the board to finalise the returns and execution plans at a meeting scheduled for late January 2027.US Top News and Analysis: “The company plans to return another 55 trillion to 75 trillion won to shareholders this year through dividends and share buybacks, as the board will finalize the total shareholder returns and specific execution plans at a meeting scheduled for late January 2027.”
