Samsung Electronics closed the third quarter with consolidated revenue of 195.3 trillion won and operating profit of 107.4 trillion won, its strongest quarterly result to date. The company attributed the performance to robust demand for AIartificial intelligence memory chips, with its Device Solutions semiconductor division accounting for almost all of the profit.
The DS division generated 147.1 trillion won in revenue and 106.5 trillion won in operating profit. By contrast, the Device eXperience division, which covers smartphones, televisions and home appliances, posted an operating loss of 0.8 trillion won on revenue of 52.1 trillion won.
Memory pricing was the key driver behind the split. Standard DRAM1. dynamic random access memoryMemory technology or system for temporarily or permanently storing digital information.2. dynamic random-access memoryDRAM is a volatile memory technology prices rose from a historical range of 20-30 cents per gigabit to $2 per gigabit, expanding the global DRAM1. dynamic random access memoryMemory technology or system for temporarily or permanently storing digital information.2. dynamic random-access memoryDRAM is a volatile memory technology market to $200 billion. Samsung reported operating margins of 79% for DRAM1. dynamic random access memoryMemory technology or system for temporarily or permanently storing digital information.2. dynamic random-access memoryDRAM is a volatile memory technology and 72% for NANDNot ANDA logic gate that outputs 0 when all inputs are 1, and outputs 1 in all other cases flash. As the high-bandwidth memory market grows, HBM4 prices are expected to reach $4 per gigabit.
Higher memory prices also weighed on Samsung’s mobile business. The Mobile eXperience and Networks unit generated 37.7 trillion won in revenue but still recorded an operating loss of 0.6 trillion won. Samsung said it aims to reduce profitability risks through efficiency improvements and a product mix centered on flagships.
In memory, Samsung said it significantly scaled up sales of HBM4 and is managing its product mix with a focus on AIartificial intelligence products amid capacity constraints. The company also said it has secured multi-year supply agreements with 10 key customers.
Samsung confirmed that its HBM1. human body modelESD test model that simulates a person discharging static electricity into a component.2. High Bandwidth MemoryHBM is a stacked DRAM architecture designed to provide very high memory bandwidth. capacity is sold out through 2027, while competitor SK Hynix has said its own HBM1. human body modelESD test model that simulates a person discharging static electricity into a component.2. High Bandwidth MemoryHBM is a stacked DRAM architecture designed to provide very high memory bandwidth. capacity is fully booked through 2029. Counterpoint Research expects Samsung to gain ground in advanced memory and to overtake SK Hynix from the HBM4 generation, with market leadership projected for 2027.
Samsung also outlined a third-quarter cash dividend of 30 trillion won as part of an estimated total shareholder return plan of 90 trillion won to 110 trillion won for 2026. Even so, the share price fell during the earnings call, reflecting investor focus on capital allocation and already elevated expectations.