Samsung Electronics Co., Ltd. released its financial results for the second quarter of 2026, revealing a massive leap in profitability driven by robust global demand for artificial intelligence infrastructure.
The company's operating profit for the quarter ended June 30 soared to 89.5 trillion Korean won, marking an increase of more than 18 times compared to the same period last year. Both revenue and profit set new all-time records for a single quarter. Consolidated revenue reached 171.5 trillion Korean won, up 130% year-on-year and 28% quarter-on-quarter. Net profit climbed 1,299.9% to 71.6 trillion Korean won.
The primary growth engine was the Device Solutions (DS) division, which oversees the semiconductor business. This unit posted a quarterly revenue of 127.5 trillion Korean won, a 56% sequential increase, and an operating profit of 89.2 trillion Korean won. Despite production capacity constraints, the memory chip segment achieved record-breaking revenue and profit, fueled by surging demand from AI servers and rising industry-wide product prices.
In terms of technology and product development, Samsung Electronics is accelerating the mass production of high-value-added goods. The company has significantly expanded sales of its High Bandwidth Memory (HBM4) and has successfully delivered the industry's first HBM4E samples to key clients. Furthermore, the Foundry business saw a notable improvement in performance, driven by increased orders from U.S. customers and higher demand for HBM base-dies. The System LSI division also achieved a record revenue performance in the first half of the year.
Looking ahead, Samsung Electronics anticipates that server-centric memory demand will remain strong in the second half of 2026, supported by the deepening adoption of AI technology and continued infrastructure investment. The company emphasized that demand for core products, including server DRAM, enterprise solid-state drives (eSSD), and HBM, is expected to accelerate. While demand for personal computers and mobile devices may see a localized slowdown, the global memory chip market is projected to maintain a supply-constrained environment.
On the other hand, the Device Experience (DX) division, which oversees smartphones and home appliances, reported a 9% sequential decline in quarterly revenue. The Mobile Experience (MX) and Networks business sustained year-on-year revenue growth, helped by models like the Galaxy S26 series. However, higher component costs resulted in an operating loss of approximately 0.7 trillion Korean won for the quarter. Samsung Electronics stated it will focus on launching new foldable flagship devices with integrated AI features to regain market share in the smart device segment and implement measures to optimize cost structures in the latter half of the year.
Additionally, Samsung Display Corporation (SDC) recorded a quarterly revenue of 7.5 trillion Korean won and an operating profit of 0.7 trillion Korean won. The company aims to focus on the high-end smartphone and automotive display markets in the second half. The Visual Display and Digital Appliances divisions will also leverage AI technology to further expand their differentiated product lineup and service offerings.