Samsung Electronics second-quarter operating profit beats estimates
Samsung’s logo is seen at the Samsung Electronics Seocho building in Seoul on July 7, 2026. South Korean tech giant Samsung Electronics on July 7 forecast a roughly 19-fold increase in second-quarter operating profit from a year ago; This increase is fueled by demand for memory chips driven by artificial intelligence. (Photo: Jade GAO/AFP via Getty Images)
Jade Gao | Afp | Getty Images
Samsung Electronics extended its record streak with second-quarter operating profit beating analysts’ forecasts as strong AI demand continued to fuel growth in its memory chip business.
Here are Samsung’s first-quarter results, weighted by analysts’ estimates, which are more consistently accurate, compared to LSEG SmartEstimates:
- Revenue: 171.5 trillion won ($118.7 billion) vs. 172.65 trillion won expected
- Operating profit: 89.5 trillion won, expected 88.13 trillion won
Samsung shares reversed to close down 0.72% on Thursday.
The South Korean technology giant achieved a record quarterly operating profit with an annual increase of 1,814%, while its revenue increased by 130%. Profit increased by more than 56% compared to the previous quarter, while revenue increased by more than 28%.
Both operating profit and revenue were in line with estimates Samsung released earlier this month.
The company cited AI server demand as a key driver of its record-breaking memory gains, helping it achieve all-time high DRAM and NAND sales. These chips are used in a wide variety of electronic devices, from smartphones to automotive systems to servers.
Samsung also said its memory investments also increased quarter-on-quarter as it continued to invest in advanced R&D while expanding investment in a new factory in Pyeongtaek and other infrastructure projects to meet demand for artificial intelligence.
The company said it increased HBM4 sales and shipped the industry’s first HBM4E samples to major customers. HBM4 is Samsung’s sixth-generation high-bandwidth memory designed to power advanced AI processors. to contain Nvidia’s Vera Rubin Platform.
Demand explosion
Samsung said it sees demand for general-purpose computing as well as AI growing exponentially, and is closely monitoring the relative pace of demand for HBM and server DRAM while maintaining an optimal product mix to support long-term AI demand.
The company expects supply constraints in the industry to continue next year and said it will manage its HBM and DRAM businesses in a balanced manner to capture an HBM market share in line with its traditional DRAM business.
In the second half of the year, the company expects strong demand for memory and ongoing AI infrastructure capex focused on servers, coupled with broader adoption of agency AI.
Josh Gilbert, principal analyst for APAC at eToro, said: “Building AI infrastructure is still paying handsomely to its vendors, and Samsung expects more to come, citing strong memory demand in the second half. The agency is adding a new layer of appetite for AI to its chips.”
Additionally, demand for server DRAM, eSSDs, and HBM is expected to increase. Enterprise SSDs are high-performance storage devices designed to deliver data quickly and are essential for AI infrastructure.
Samsung said it expects supply constraints to tighten further in 2027 as rapidly growing AI token production drives demand to grow exponentially in the medium and long term. More customers are seeking multi-year supply agreements to secure AI infrastructure capacity, giving Samsung better visibility into future demand and greater flexibility in investment planning, the company said.
The South Korean tech giant added that it has completed deals with its five largest global data center customers and is in the final stages of talks with five major accounts to support their AI-related demands.
Regarding the possibility of a US listing, Samsung said it was “not currently reviewing an ADR issuance” despite recent media reports. The company added that from a medium-to-long-term shareholder value perspective, ADR remains “one of several possible options that may be open to consideration.”
Samsung last week announced its latest product line, which includes new foldable smartphones, as well as an expanded strategic collaboration with Broadcom in memory and casting technologies.
“The strength of the memory business is remarkable, but so is Samsung’s dependence on it,” Gilbert said, pointing out that the mobile and networking industry was driven to a 700 billion won loss by the pressure of component prices that triggered the semiconductor boom.
company increasing component cost pressures were mentioned Although revenue increased year over year, the decline was due to solid sales of the Galaxy S26 series and strong momentum of the Galaxy A series.
The company recently launched its robotics division under the CEO’s direct supervision and said it sees robotics as well as artificial intelligence as a key growth area and is exploring potential investments in mergers and acquisitions as well as collaborations with startups to accelerate its strategy.
Samsung’s local rival SK Hynix posted another record second-quarter profit on Wednesday despite missing analysts’ forecasts.
