Samsung Q3 operating profit tops 100 trillion won for first time, up 782.5%
In short
Samsung Electronics' preliminary third-quarter figures show operating profit of 107.4 trillion won, up 782.5% from a year earlier, on revenue of 195 trillion won, up 126.6%. 36Kr reported it is the first time the company's quarterly operating profit has passed 100 trillion won, driven by AI demand for its chips. Detailed results, including divisional breakdowns, are due on October 29.
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Samsung Electronics reported preliminary third-quarter operating profit of 107.4 trillion won, up 782.5% from a year earlier, according to a regulatory filing reported by Jiemian. Revenue for July to September rose 126.6% to 195 trillion won. 36Kr reported that this is the first time the company's quarterly operating profit has exceeded 100 trillion won, and attributed the growth to surging AI demand for its chip business. 36Kr said no net profit figure was yet available. [ 2 , 4 , 5 ]
Outlets differed on how the figures compared with forecasts. CLS reported that revenue of 195 trillion won compared with an estimate of 201.9 trillion won. A day earlier, IT Home had reported an LSEG SmartEstimate consensus of 106.1 trillion won for operating profit, a figure that had been cut 7.7% since late August. An AI-generated summary published by IT Home said the results exceeded market expectations. That summary also reported revenue up 13.7% and operating profit up 20.01% from the previous quarter. [ 1 , 2 , 3 ]
Jiemian reported that analysts said Samsung would post a fourth consecutive quarter of record revenue and operating profit, and that the results show AI infrastructure demand outpacing growth in memory chip supply, a gap expected to last into 2027. Samsung's operating profit in the same quarter last year was 12.17 trillion won, IT Home reported. Samsung will publish detailed results, including divisional earnings, on October 29. [ 1 , 5 ]
In its preview, IT Home reported market concern that memory chip price increases slowed in the third quarter. TrendForce forecast conventional DRAM contract prices rising 10% to 15% quarter on quarter in the fourth quarter, compared with about 60% in the second quarter. TrendForce senior vice president Avril Wu said suppliers were cautious about further steep increases and that long-term agreements with price caps were taking a growing share of shipments. The won rose 14.3% against the dollar in the quarter, reducing the value of overseas earnings, IT Home reported. [ 1 ]
IT Home also reported that Samsung's shares have fallen about 25% from their June high but remain more than double their level at the start of the year. JPMorgan forecasts Samsung's share of the HBM market rising from 20% last year to 34% this year, while SK Hynix's falls from 60% to 46%, according to IT Home. [ 1 ]
Why it matters
Samsung is described by the outlets as the world's largest memory chipmaker, and its results are read as a gauge of how far AI infrastructure demand is outrunning memory chip supply. Before the release, IT Home reported market concern that chip price increases were slowing and that industry margins may have peaked.
Key facts
- Samsung Electronics' preliminary third-quarter operating profit was 107.4 trillion won, up 782.5% year on year. [ 2 , 4 , 5 ]
- Third-quarter revenue was 195 trillion won, up 126.6% year on year. [ 2 , 3 , 4 , 5 ]
- 36Kr reported this is the first time Samsung's quarterly operating profit has exceeded 100 trillion won. [ 4 ]
- CLS reported the revenue estimate was 201.9 trillion won. [ 3 ]
- Ahead of the release, the LSEG SmartEstimate consensus for operating profit was 106.1 trillion won, after being cut 7.7% since late August. [ 1 ]
- Samsung's operating profit in the same quarter last year was 12.17 trillion won. [ 1 ]
- Samsung will publish detailed results, including divisional earnings, on October 29. [ 5 ]
- No net profit figure has been given yet. [ 4 ]
Confirmed by several sources
Still unclear
- Whether the results beat or missed expectations. An AI-generated summary carried by IT Home said results exceeded forecasts, while CLS reported revenue of 195 trillion won against an estimate of 201.9 trillion won; operating profit came in above the 106.1 trillion won LSEG consensus cited by IT Home.
- Net profit and divisional earnings. 36Kr said no net profit data is available yet; Jiemian said divisional breakdowns come with the October 29 release.
- How long the memory chip shortage will last. Chipmakers cited by IT Home expect it to run into next year and possibly 2028; Jiemian cited analysts expecting the gap to persist into 2027.
What local media are saying
Timeline, local time
- On October 7, IT Home reports analysts expect third-quarter operating profit of about 106.1 trillion won. [ 1 ]
- On October 8, IT Home reports Samsung's preliminary revenue of 195 trillion won and operating profit of 107.4 trillion won. [ 2 ]
- CLS reports revenue of 195 trillion won against an estimate of 201.9 trillion won. [ 3 ]
- 36Kr reports operating profit has passed 100 trillion won for the first time. [ 4 ]
- Jiemian reports the regulatory filing figures and an October 29 date for detailed results. [ 5 ]