Samsung Electronics (005930) Q2 2026 earnings summary

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; EPS increased 52% to KRW 10,849, reflecting significant profitability improvement.

• Memory business set all-time highs in DRAM and NAND shipments, fueled by hyperscaler AI demand and record server revenue mix.

• Foundry and Display divisions saw revenue and profitability improvements, while DX (Device eXperience) faced margin pressure from rising component costs and posted an operating loss.

• Performance driven by technology leadership, strong AI server demand, and swift market response, securing future growth through ongoing innovation.

Financial highlights

• Revenue: KRW 171.5T (+28% QoQ); Operating profit: KRW 89.5T (+56% QoQ); Operating margin: 52% (up from 43%); Gross margin: 69.6%; EBITDA margin: 59%.

• Net profit: KRW 71.6T (+52% QoQ); EPS: KRW 10,849 (+52% QoQ); ROE improved to 56%.

• R&D expenses reached KRW 16T, a new quarterly high, up 41% QoQ and 78% YoY.

• Positive FX impact of KRW 3.1T on operating profit.

• Q2 dividend of KRW 374 per share; annual regular dividend commitment of KRW 9.8T.

Outlook and guidance

• Growth momentum expected to continue in H2 2026, led by strong semiconductor demand, AI adoption, and robust server demand.

• Memory supply constraints to persist through 2028, with multi-year supply agreements becoming standard.

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

• Display to expand premium product sales and mass production at Gen 8.6 OLED line; SDC to pursue growth via premium OLED and gaming monitors.

• MX to expand flagship-led sales and launch new AI-driven devices; VD/DA to lead AI TV market and enhance profitability through service business expansion.