Samsung Electronics (005930) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached KRW 86.1 trillion, up 15.4% quarter on quarter and 9% year over year, with operating profit at KRW 12.2 trillion, a sequential increase of KRW 7.5 trillion and margin up to 14.1%, led by memory and foundry improvements.

• Net profit reached KRW 12.2 trillion, with profitability (net profit/sales) at 14.2%.

• Memory business set a new all-time high for quarterly sales, driven by HBM3E and server SSDs, while DX division saw strong foldable and flagship phone sales.

• SG&A expenses were KRW 21.3 trillion, with a decline in SG&A as a percentage of sales; R&D expenses hit a record KRW 26.9 trillion year-to-date.

• Shareholder returns included a completed KRW 10 trillion share repurchase and a quarterly dividend of KRW 370 per share, with annual dividends totaling KRW 9.8 trillion.

Financial highlights

• DS division sales rose 19% sequentially and 19% year over year, with memory achieving record sales; DX division revenue increased 11% quarter on quarter.

• Gross profit increased to KRW 33.5 trillion, with a gross margin of 38.9%.

• EBITDA margin improved to 27% from 20% in the previous quarter.

• CapEx for Q3 2025 was KRW 9.2 trillion, down KRW 1.9 trillion from the previous quarter and KRW 3.3 trillion year-over-year; PP&E purchases at KRW 10.8 trillion.

• Earnings per share rose to KRW 1,802, up from KRW 737 in 2Q 2025.

Outlook and guidance

• Q4 2025 expected to see mixed market conditions with ongoing trade/geopolitical risks but growth from AI industry; DS to focus on high-value memory for AI, DX to emphasize advanced AI products.

• Memory: Focus on expanding HBM3E and high-value server memory sales to meet AI demand; strategic push for HBM4 in 2026.

• Foundry: Target further earnings improvement via 2nm mass production ramp-up and cost optimization.

• CapEx for 2025 projected at KRW 47.4 trillion, down KRW 6.3 trillion year-over-year; DS division to account for KRW 40.9 trillion.

• 2026 memory CapEx likely to increase significantly year-on-year, with DRAM investments prioritized for AI demand.