Samsung Q3: Operating Profit Passes 100 Trillion Won for the First Time, Chips Account for 99%

What happened

The semiconductor business contributed almost all of the profit: the Device Solutions division posted revenue of 147.1 trillion won and operating profit of 106.5 trillion won, about 99% of group operating profit, with chip profit about 15 times its level a year earlier; the finished-products division posted revenue of 52.1 trillion won and an operating loss of 800 billion won, its second consecutive quarterly loss, including a 600 billion won loss in mobile.

The memory business set a quarterly record: memory revenue of 140.7 trillion won, up 427% year over year; Samsung said sixth-generation high-bandwidth memory HBM4 sales more than tripled in the third quarter from the previous quarter; Jaejune Kim, executive vice president of memory global sales and marketing, said on the earnings call that 2027 HBM supply volume is already sold out at an agreed target price reflecting product competitiveness, while requests for additional supply from key customers continue, and Samsung expects the memory shortage to deepen next year.

Capital spending and shareholder returns were announced together: full-year 2026 capital spending is estimated at 84.4 trillion won, including 76.8 trillion won for semiconductors, up 62% from the previous year; third-quarter capital spending was 29 trillion won, including 27.2 trillion won for semiconductors, taking the first nine months to 56.9 trillion won; the third-quarter dividend is 4,601 won per share, totaling 30 trillion won, and the full-year shareholder return target is 90 trillion to 110 trillion won, with the next shareholder-return policy to be finalized by the board in January 2027; Samsung shares fell as much as 6.2% in morning trading in Seoul, according to reports.

Key facts

1. Revenue: 195.25 trillion won, up 126.9% year over year, below the 200.3 trillion won analysts had forecast; a fourth consecutive quarter of record revenue and operating profit.
2. Operating profit: 107.44 trillion won, up 783.1% year over year, above the 106 trillion won consensus compiled by market tracker FnGuide, passing 100 trillion won for the first time.
3. Net profit: 75.14 trillion won, up 514.6% year over year, below the 87.4 trillion won estimate compiled by FnGuide.
4. Semiconductor division: revenue of 147.1 trillion won and operating profit of 106.5 trillion won, passing 100 trillion won for the first time, about 99% of group operating profit.
5. Memory business: revenue of 140.7 trillion won, up 427% year over year, a quarterly record; HBM4 sales more than tripled in the third quarter from the previous quarter.
6. 2027 HBM: supply volume is already sold out at agreed prices, and Samsung expects memory demand next year to exceed industry supply, deepening the shortage.
7. Finished-products division: revenue of 52.1 trillion won and an operating loss of 800 billion won, a second consecutive quarterly loss; Samsung Display earned 1.1 trillion won in operating profit and Harman 600 billion won.
8. Capital spending: full-year 2026 estimated at 84.4 trillion won, including 76.8 trillion won for semiconductors, up 62% from the previous year; 29 trillion won in the third quarter and 56.9 trillion won in the first nine months.
9. Shareholder returns: third-quarter dividend of 4,601 won per share, totaling 30 trillion won; full-year shareholder return target of 90 trillion to 110 trillion won, of which 35 trillion won has been executed or confirmed.
10. Market reaction: Samsung shares fell as much as 6.2% in morning trading in Seoul, according to reports, reversing an early rise, as investors reacted to the lack of new detail on shareholder returns.