DBT Bureau
Pune, 31 Oct 2026
Samsung Electronics reported financial results for the third quarter ended Sept. 30, 2026.
The Company posted KRW 195.3 trillion in consolidated revenue, another all-time quarterly high, representing a quarter-on-quarter (QoQ) increase of 14%. Operating profit reached KRW 107.4 trillion, making Samsung Electronics the world’s first tech company to exceed KRW 100 trillion in quarterly operating profit.
The Device Solutions (DS) Division posted a QoQ sales increase of 15%, with the Memory Business setting an all-time high for quarterly revenue and operating profit, as semiconductor demand is set to remain robust.
The Device eXperience (DX) Division posted a QoQ revenue increase of 8% and recorded an operating loss of KRW 0.8 trillion.
DS To Sustain Growth by Proactively Meeting Growing Demand for AI Applications
The DS Division posted KRW 147.1 trillion in consolidated revenue and KRW 106.5 trillion in operating profit for the third quarter.
The Memory Business achieved another record-breaking quarter by managing its product mix, with a focus on AI products, amid capacity constraints. Strong demand momentum for servers led to higher market prices across all applications.
Additionally, the Business experienced continued robust demand, driven by AI applications. It significantly scaled up sales of HBM4 on the back of industry-leading product competitiveness while proactively addressing growing demand for server SSDs.
In Q4 2026, the Memory Business expects industry-wide competition for AI leadership to drive continued AI infrastructure investment. Memory demand growth is projected to revolve around new CPU and GPU platform-related products, while surging QLC SSD demand will be linked to the expansion of personal AI agent services.
The Memory Business will also maintain a sales strategy focused on AI applications in order to solidify market leadership. Leveraging its industry-leading products and unmatched scale, the Business aims to achieve this by further increasing HBM, server DRAM, and SSD sales, while also increasing the supply of high-speed server DDR5 products and QLC SSDs.
In 2027, the Business expects AI infrastructure capital expenditure to reach a historic level as the AI ecosystem expands. Additionally, increasing AI-driven demand will far exceed the industry supply in comparison with 2026. The Business also aims to leverage its superior technology to bolster market leadership and optimize product mix in alignment with market trends and customer needs.
It plans to lead the high-end market and sharpen its AI-driven portfolio while building a stable sales base by securing multi-year contracts and ensuring timely readiness of new products tailored to the requirements of AI applications.
The System LSI Business achieved revenue growth in Q3 2026, driven by the mass production of systems-on-a-chip (SoCs) and image sensors for new models launched in H2. Additionally, the custom SoC business secured projects by establishing new customer partnerships.
In Q4 2026, the Business plans to maintain stable production and sales of flagship SoCs and 200MP image sensors.
In 2027, the System LSI Business aims to expand flagship SoC sales and strengthen partnerships with custom SoC customers. It also plans to accelerate sales of flagship high-resolution image sensors and diversify into non-mobile applications.
The Foundry Business experienced a notable revenue and earnings improvement on HBM base-die sales growth and expanded advanced-node sales, as well as continued order wins centered on 2nm HPC customers, including major hyperscalers.
Looking ahead to Q4 2026, the Foundry Business plans to achieve double-digit revenue growth and continued earnings improvement on new mobile products, mass production ramp-up of 4nm NPUs, and expanded memory product sales.
In 2027, the Business will aim for revenue growth led by 4nm and 2nm advanced nodes based on strong AI and HPC demand. It also expects to strengthen its global supply capabilities with the commencement of operations at its new fab in Taylor, Texas.
SDC To Build On Growth With Enhanced, Diversified Product Lineup
Samsung Display Corporation (SDC) posted KRW 8.0 trillion in consolidated revenue and KRW 1.1 trillion in operating profit for the third quarter.
For the small and medium display business, SDC reported improved earnings based on solid demand for high-end mobile products, while the large display business expanded sales volume and revenue on the growth of the gaming monitor market.
In Q4 2026, SDC expects a positive effect from year-end peak seasonal demand and new product launches, but it anticipates a limited improvement in earnings due to external factors.
During the quarter, the small and medium display business will pursue sales expansion by actively responding to customer demand, while the large display business will focus on improving profitability centered on gaming monitors.
In 2027, SDC expects continued market demand weakness amid ongoing uncertainty. For smartphones, the small and medium display business aims to increase the portion of premium products like foldables, and for IT, the business will pursue sales expansion through the ramp-up of the new 8.6G IT line and strengthening of the product lineup. The large display business aims to continue pursuing improved profitability centered on high value-added models.
MX To Maintain Mobile Leadership by Capitalizing on the High-Growth Premium Market
The MX and Networks Businesses posted a combined KRW 37.7 trillion in consolidated revenue and reported an operating loss of KRW 0.6 trillion for the third quarter. Revenue increased QoQ and year-on-year (YoY), mainly driven by new flagship launches including foldables. Earnings increased QoQ with an improved flagship sales mix, but declined YoY due to cost pressures.
In Q4 2026, the MX Business plans to drive year-end peak-season sales growth centered on flagships including the Galaxy S26 series, Galaxy Z Fold8 Ultra, and Z Fold8, as well as new ecosystem products. It will also seek to mitigate profitability risks through efficiency improvements across all business processes.
In 2027, the MX Business aims to maintain its mobile leadership by focusing on three strategic priorities. First, it will improve its product mix, centered on flagships with differentiated experiences by customer segment. Second, it will enhance the desirability and deliver tangible value of products through hardware and form-factor innovation. Third, it will minimize declines in profit with agile market responses and operational efficiency initiatives.
In Q3 2026, the Networks Business saw a decline in earnings QoQ and YoY due to lower North American and high-margin software sales. In Q4 2026, the Business aims to secure profitability through revenue growth in North America, Korea, and Japan. In 2027, the Business plans to drive profitable growth by securing new orders amid telco investment headwinds.
VD/DA Businesses and Harman To Extend AI-Based Product Innovation
The Visual Display (VD) and Digital Appliances (DA) Businesses posted a combined KRW 13.9 trillion in consolidated revenue and reported an operating loss of KRW 0.2 trillion for the third quarter.
The VD Business saw revenue decline due to the conclusion of major sporting events, while earnings decreased due to increased costs. In Q4 2026, the Business aims to capture peak season demand through strengthened channel partnerships and differentiated marketing, while expanding sales of premium products in order to offset the impact of rising costs. In 2027, while overall TV demand is expected to remain flat or decline slightly, the Business will focus on securing profitable growth engines by delivering differentiated TV experiences, as well as strengthening the service and platform businesses.
Meanwhile, the DA Business’ earnings declined due to higher costs related to raw materials and logistics, despite stronger domestic marketing efforts and growth in the B2B and subscription businesses. In Q4 2026, the Business intends to improve profitability with a higher premium mix, and in 2027, it aims to secure profitability by expanding sales of innovative AI products and growing its high-margin B2B businesses.
Harman posted improved earnings on expanded audio and automotive sales, with a boost from non-recurring U.S. tariff refunds. Looking ahead, the Business will seek to maintain stable growth momentum by developing new automotive business and extending audio leadership through portfolio enhancements.
Shareholder Return: Q3 Dividend Details and Total Payout
The third-quarter cash dividend amounts to KRW 4,601 per common share and KRW 4,601 per preferred share, totaling KRW 30 trillion.
Of the estimated KRW 90110 trillion in total shareholder returns for 2026, and with KRW 35 trillion already planned or completed, the company anticipates the remaining funds to be KRW 5575 trillion.
The return of the remaining funds will include a substantial share repurchase and cancellation program, along with cash dividends.
The Company recognizes the growing market interest in the price gap between common and preferred shares, and is committed to actively considering and adjusting the proportion of preferred shares in our share repurchase and cancellation program based on market conditions.
The next shareholder return policy, along with the final amount of shareholder returns and the specific execution plans for the remaining funds for 2026, will be finalized at the Board meeting scheduled for late January 2027, with an announcement to follow.
Third Quarter 2026 Capital Expenditures
In the third quarter, Samsung Electronics’ capital expenditure reached KRW 29 trillion, an increase of KRW 12.2 trillion quarter-on-quarter (QoQ) and KRW 19.8 trillion year-on-year (YoY). Capital expenditure consisted of KRW 27.2 trillion spent in the Device Solutions (DS) Division and KRW 1.1 trillion in Samsung Display Corporation (SDC). The cumulative total for the January-September period is KRW 56.9 trillion, up KRW 24.7 trillion YoY, with KRW 52.8 trillion allocated to the DS Division and KRW 2.4 trillion to SDC.
The full-year capital expenditure for 2026 is expected at approximately KRW 84.4 trillion, including KRW 76.8 trillion allocated to the DS Division and KRW 3.9 trillion to SDC.
For the DS Division, investments are planned for new fabs and other infrastructure to meet strong AI and HPC demand while ensuring readiness for the mid-to long term. For SDC, investments will focus on upgrades to existing production lines.
