Samsung Electronics (005930) Q4 2025 earnings summary

Executive summary

• Achieved record-high quarterly revenue of KRW 93.8 trillion in Q4 2025, up 9% sequentially and 24% YoY, with the highest annual revenue in company history.

• Operating profit reached KRW 20.1 trillion in Q4, up 207% YoY and 65% QoQ, with operating margin rising to 21.4%.

• DS division drove growth with a 33% sales increase QoQ, led by strong AI-related memory demand and higher market prices.

• Display and Mobile segments maintained solid performance, though some areas faced seasonal and competitive pressures.

• Significant investments in R&D and sustainability initiatives, including industry-first helium reuse system and verified energy savings in appliances.

Financial highlights

• SG&A expenses rose to KRW 24.2 trillion, up KRW 2.9 trillion QoQ, representing 25.8% of sales.

• R&D investment hit KRW 10.9 trillion in Q4 and a record KRW 37.7 trillion for the year.

• Net profit for Q4 2025 was KRW 19.6 trillion (20.9% margin); full-year net profit was KRW 45.2 trillion (13.6% margin).

• CapEx for Q4 was KRW 20.4 trillion, with KRW 19 trillion allocated to DS and KRW 0.7 trillion to display; full-year CapEx was KRW 52.7 trillion.

• EBITDA margin improved to 33% in Q4 2025.

Outlook and guidance

• 2026 expected to face persistent risks from global trade barriers and geopolitical uncertainties.

• DS division to focus on AI semiconductor leadership, expanding HBM and advanced packaging, and maintaining a balanced product mix.

• Memory segment expects continued AI-driven demand, with plans to launch HBM4 and expand high-density DDR5 and SSD sales.

• Foundry revenue may decline in Q1 due to seasonality but targets double-digit growth for 2026.

• Shareholder return policy for 2024-2026 includes regular quarterly dividends of KRW 2.45 trillion and additional dividend of KRW 1.3 trillion for 2025.