Samsung Electronics (005930) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of KRW 79.14 trillion, up 10% year-over-year and 4% quarter-on-quarter, driven by strong flagship smartphone and home appliance sales.

• Operating profit rose to KRW 6.7 trillion, with an 8.4% margin, and net profit reached KRW 8.2 trillion (10.4% margin), led by Galaxy S25 series and high-value-added products.

• Growth was driven by strong performance in Device Experience (DX) and Mobile Experience (MX), offsetting some weakness in Device Solutions (DS).

• SG&A expenses decreased, improving cost efficiency.

• Currency appreciation, especially the U.S. dollar, positively impacted operating profit by KRW 0.5 trillion.

Financial highlights

• DX division revenue surged 28% quarter-on-quarter and 9% year-over-year; DS division revenue fell 17% sequentially but rose 9% year-over-year.

• CapEx dropped to KRW 12 trillion, with memory and display investments declining sequentially.

• R&D spending hit a record high for Q1, up 15% year-on-year.

• Quarterly per-share dividend set at KRW 365; Q1 payout totals KRW 2.45 trillion.

• Gross profit was KRW 28.1 trillion, with a gross margin of 35.5% in 1Q25.

Outlook and guidance

• Expect gradual performance improvement in H2 2025, assuming easing uncertainties.

• AI server demand and on-device AI trends to drive DS division growth; foundry to focus on profitability and advanced nodes.

• Mobile and PC demand to benefit from AI integration; premium product strategy to continue amid tariff and macro risks.

• Memory: Ramp-up of HBM3E 12H and 8th Gen V-NAND, focus on high-density server and AI trends.

• S.LSI/Foundry: Enter flagship SoC models, stabilize 2nm process, and expand sensor sales.