Samsung Electronics (005930) investor relations material

Executive summary

• Achieved record-high Q2 2026 revenue of KRW 171.5T (+28% QoQ, +130% YoY) and operating profit of KRW 89.5T (+56% QoQ, +1,814% YoY), driven by AI technology leadership and robust demand across core businesses.

• Net profit rose 52% QoQ to KRW 71.6T, with EPS at KRW 10,849 (+52% QoQ), reflecting significant profitability improvement.

• Memory business set all-time highs in DRAM and NAND shipments, fueled by hyperscaler AI demand and proactive market response.

• Foundry saw higher utilization, advanced node demand, and growth from HBM B-Die and U.S. orders.

• Future growth secured through ongoing innovation and global leadership in core businesses.

Financial highlights

• Revenue: KRW 171.5T (+28% QoQ); Operating profit: KRW 89.5T (+56% QoQ); Operating margin: 52% (up from 43%).

• Gross margin rose to 69.6% from 61.2% in the previous quarter; EBITDA margin reached 59%.

• Net profit surged to KRW 71.6T, 41.8% of sales, up from KRW 47.2T in 1Q 26.

• R&D expenses hit a quarterly record at KRW 16T (+KRW 5T QoQ, +78% YoY).

• CapEx for Q2: KRW 16.8T (KRW 15.4T for DS, KRW 0.7T for Display), up KRW 5.5T sequentially.

Outlook and guidance

• Growth momentum expected to continue in H2, led by strong semiconductor and AI infrastructure demand.

• Memory market to remain undersupplied despite moderation in mobile and PC demand.

• Foundry and S.LSI target double-digit YoY revenue growth, focusing on advanced nodes and AI/HPC design wins.

• DX division to focus on premium products, AI-driven innovation, and cost efficiency amid macro uncertainties.

• SDC to pursue revenue growth via premium OLED and gaming monitors; VD/DA to lead AI TV market and expand service business.