Samsung Electronics' operating profit this year is expected to exceed the cumulative total of the past 40 years, and the second quarter may set a new record for the highest operating profit in the history of global technology companies.
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Samsung released its Q2 earnings forecast: operating profit increased by over 1800% year-on-year, with single-quarter profit exceeding the total of the previous three years.
BlockBeats reported on July 7th that global semiconductor giant Samsung Electronics released extremely strong preliminary financial results for the second quarter. Data shows that, driven by the powerful wave of artificial intelligence (AI), the world's largest memory chip manufacturer is experiencing its most prosperous profit cycle in history. According to the financial report, Samsung's operating profit in the second quarter surged 1810.2% year-on-year, reaching 89.4 trillion won (approximately US$58 billion). This figure not only far exceeded the market's previous expectation of 84.2 trillion won, but also remarkably surpassed the company's total profit for the three years from 2023 to 2025. At the same time, the company's revenue also increased by 129% year-on-year, reaching 171 trillion won. Following Samsung Electronics' earnings forecast, SanDisk (SNDK.O) and Micron Technology (MU.O) saw their US-listed shares decline in after-hours trading. Samsung's explosive performance directly benefits from the near-"thirsty" orders for high-performance memory chips from AI data centers. Industry giants like Nvidia and OpenAI have repeatedly stated publicly that the shortage of memory chips has become a core bottleneck for current AI development. Because major manufacturers prioritize the production capacity of high-bandwidth memory (HBM), which is designed specifically for AI and offers higher profits, this has conversely squeezed the conventional memory space needed for smartphones, PCs, and enterprise servers. This "capacity squeeze" effect has led to a severe shortage in the global memory market. HSBC data shows that in the second quarter of 2026, the average selling price of DRAM increased by more than 40% compared to the previous quarter, and NAND prices increased by more than 50%; Citi Research gives even higher estimates, at 44% and 53% respectively. Analysts generally believe that this "seller's market" will continue at least until 2027, giving Samsung and its long-time rivals SK Hynix and Micron Technology extremely strong pricing power.
Samsung will release its preliminary Q2 financial results tomorrow: profits are expected to surge 18 times, with executives boasting that "one year's profits are equivalent to 40 years' worth."
According to BlockBeats, Samsung Electronics will release its preliminary Q2 2026 results on July 7th, while SK Hynix will list its ADRs on Nasdaq on July 10th. With these two major events for South Korea's semiconductor giants, the market is highly focused on the industry's health and the impact of AI chip demand on earnings. According to a compilation of forecasts from 30 analysts by the London Stock Exchange Group (LSEG), Samsung Electronics' Q2 operating profit is expected to be approximately 86 trillion won (about US$56.3 billion), with some brokerages predicting as high as 90 trillion won, representing a year-on-year increase of approximately 17-18 times, potentially marking its best quarterly performance in recent years. Prior to the preliminary earnings release, Samsung Electronics management has already released positive signals. Kim Yong-kwan, President of Business Strategy for Samsung Electronics Device Solutions (DS) division, stated at an internal all-hands meeting on July 3rd that the company's full-year 2026 operating profit is expected to meet market consensus expectations. Currently, the market generally expects Samsung Electronics' full-year operating profit to be approximately 300 trillion won (about US$200 billion), with improvements in AI servers, high-bandwidth memory (HBM), and wafer foundry business considered the main drivers of growth. Kim Yong-kwan also stated, "This year's profit will exceed the total cumulative profit of our 40 years in the semiconductor business." Industry insiders believe this is a rare instance of Samsung Electronics management proactively making a positive statement about the full-year profit outlook before officially disclosing the results, reflecting the company's strong confidence in the recovery of its AI-driven semiconductor business and its overall performance growth for the year. With the release of Samsung's financial report and the upcoming listing of SK Hynix's ADRs, the South Korean semiconductor sector will be entering its most important market observation window in the near future.
Samsung is projected to earn more in one year than in the previous 40 years, with operating profit estimated at approximately $200 billion this year.
According to a post on the X platform by Citrini analyst Jukan, as reported by Odaily Odaily, South Korean media stated that Kim Yong-kwan, President and Head of Business Strategy at Samsung Electronics Device Solutions, said at an all-hands meeting of DS division management on July 3 that this year's operating profit is expected to meet market consensus. South Korean securities firms estimate that Samsung Electronics' operating profit this year will be approximately 300 trillion won, equivalent to about US$200 billion. Kim Yong-kwan reportedly stated that this year's profit alone will exceed the cumulative profits generated by Samsung in its 40 years in the semiconductor business.
Samsung's performance will be a key test for the AI chip market; Q2 operating profit is expected to surge 18 times.
Samsung Electronics, the memory chip maker, is set to release its second-quarter results on Odaily. Analysts predict preliminary operating profit of 84.3 trillion won (approximately $55.1 billion), an 18-fold increase year-over-year and exceeding its full-year profit for 2025. Revenue is expected to grow by 127% to a record 169 trillion won. Since June, chip stocks have experienced several significant corrections due to market concerns about intensified competition, potential overcapacity, and the return on massive AI investments. This further amplifies the importance of Samsung's results, leaving very little room for disappointment given already high market expectations. Roundhill Financial CEO Dave Mazza stated, "Samsung's results come at a time when the market is simultaneously questioning the supply and demand sides of the investment logic in memory chips. If the results are close to market expectations, it will help quell the controversy and benefit Samsung." (Jinshi)
Driven by surging demand for AI, Samsung's Q2 operating profit is expected to jump 18 times.
According to Reuters, Samsung Electronics' operating profit for the second quarter of this year is expected to surge approximately 18 times year-on-year, reaching about 86 trillion won (approximately US$56.35 billion), benefiting from the continued tight supply of memory and a sharp rise in chip prices caused by the rapid development of AI. This would be the company's third consecutive quarter of record-high operating profit. Analysts point out that in addition to high-bandwidth memory (HBM), the widespread adoption of complex applications such as agentic AI has also greatly boosted the strong demand for traditional DRAM and NAND products, and the supply shortage in the memory market is expected to continue at least until next year. Despite the strong performance expectations, analysts warn that the timing of the actual second-quarter profit may be slightly lower than market expectations, as Samsung previously agreed to allocate 10.5% of its semiconductor division's operating profit as special bonuses to avoid strikes. Furthermore, the rising cost of memory components is severely squeezing the profit margins of Samsung's mobile business, and industry insiders expect that it may need to further increase the prices of smartphones and other terminal products in the second half of the year to alleviate cost pressures.
Samsung expects its Q2 operating profit to reach 89.4 trillion won, a staggering 1810% year-on-year increase.
According to an official announcement from Samsung Electronics, the company has released its performance guidance for the second quarter of 2026. Based on Korean International Financial Reporting Standards (K-IFRS), Samsung Electronics expects consolidated sales of approximately 171 trillion won (estimated range: 170 trillion to 172 trillion won) and consolidated operating profit of approximately 89.4 trillion won (estimated range: 89.3 trillion to 89.5 trillion won). Data shows a significant leap in Samsung Electronics' performance compared to the same period last year. In comparison, its consolidated sales in the second quarter of 2025 were 74.57 trillion won, and its operating profit was 4.68 trillion won; in the previous quarter (first quarter of 2026), its sales were 133.87 trillion won, and its operating profit was 57.23 trillion won. This strong performance is mainly attributed to the continued surge in demand and price increases for high-bandwidth memory (HBM) and other advanced memory chips driven by the ongoing artificial intelligence boom. Samsung Electronics is reportedly set to release a detailed full financial report later this month.