Samsung Electronics (005930) investor relations material

Executive summary

• Achieved record-high quarterly revenue of KRW 134 trillion (up 69.2% YoY) and operating profit of KRW 57.23 trillion, driven by AI innovation, high-value product portfolio, and strong DS (semiconductor) performance.

• Net profit reached KRW 47.2 trillion, with EPS of KRW 7,123 (common) and KRW 7,124 (preferred).

• Memory business posted its second consecutive record quarter, fueled by AI server demand and premium product sales.

• All divisions contributed to growth, with notable strength in semiconductors, new flagship smartphone launches, and steady performance in DX, SDC, and Harman.

• Demonstrated technological leadership and maintained market leadership through product competitiveness and continuous innovation.

Financial highlights

• Revenue rose 43% QoQ and 69% YoY; operating profit surged 185% QoQ and 756% YoY.

• Operating margin expanded to 43% (up from 21% QoQ); gross margin improved to 61.2%; EBITDA margin reached 51%.

• DS Division revenue and profit surged on AI-driven memory and system semiconductor sales.

• Cash and cash equivalents at quarter-end were KRW 73.31 trillion, with net cash at KRW 119.2 trillion.

• ROE increased to 41%, and asset turnover rose to 0.89.

Outlook and guidance

• Semiconductor demand expected to remain strong in Q2, with memory prices on an upward trend due to AI infrastructure expansion.

• Foundry and S.LSI earnings to improve via advanced process sales, 2nm technology orders, and new customer expansion.

• DX Division profit to decline in Q2 due to cost pressures, but mitigated by premium product launches and cost efficiencies.

• SDC to pursue premium product growth amid market uncertainty.

• Second half outlook mixed: AI-driven semiconductor growth vs. rising IT product costs and geopolitical risks.