Samsung Electronics’ third-quarter operating profit tops 107 trillion won, setting a record amid an AI memory boom
Samsung Electronics’ third-quarter operating profit tops 107 trillion won, setting a record amid an AI memory boom
Samsung Electronics recorded operating profit of 107.4 trillion won in the third quarter of 2026, becoming the first South Korean company to surpass 100 trillion won in quarterly operating profit.
On October 8, Samsung Electronics announced preliminary consolidated third-quarter revenue of 195 trillion won and operating profit of 107.4 trillion won, up 126.59% and 782.50%, respectively, from a year earlier. The figures broke records set just the previous quarter.
The milestone is significant because it marks the first time a global technology company, not just a South Korean company, has exceeded 100 trillion won in quarterly operating profit. Increased semiconductor demand and rising memory prices driven by expanding investment in artificial intelligence (AI) infrastructure are thought to have sharply boosted profitability.
Operating profit of 107 trillion won: Earnings rise faster than revenue
Samsung Electronics reported third-quarter revenue of 195 trillion won, up 13.70% from 171.5 trillion won in the previous quarter. Operating profit rose 20.01% over the same period, from 89.49 trillion won to 107.4 trillion won.
Growth is even more striking compared with the third quarter of last year, when revenue was about 86.1 trillion won and operating profit about 12.2 trillion won. In just one year, revenue more than doubled, while operating profit grew about 8.8-fold.
The operating margin is particularly notable: Operating profit reached 55.1% of revenue this quarter, about 2.9 percentage points higher than the previous quarter’s 52.2%.
That points to improved profitability as well as higher revenue, as reflected in operating profit growing faster than sales.
Revenue fell short of market expectations of about 200 trillion won, while operating profit slightly exceeded expectations of around 106 trillion won. The results are therefore being seen as a stronger demonstration of earnings power than of revenue growth.
A dramatic turnaround in results in just one year
To understand Samsung Electronics’ latest results, it helps to look at its recent quarterly performance.
Operating profit rose from 12.2 trillion won in the third quarter of 2025 to 20.1 trillion won in the fourth. It then reached 57.2 trillion won in the first quarter of 2026 and about 89.5 trillion won in the second, before climbing to 107.4 trillion won in the third.
Revenue also climbed over the same period, from 86.1 trillion won to 93.8 trillion won, 133.9 trillion won, 171.5 trillion won and finally 195 trillion won, extending the growth trend that began in the second half of last year.
One notable change this year is that operating profit has been growing faster than revenue. Higher semiconductor selling prices and increased sales of high-value products appear to have lifted overall profitability.
The scale of the latest results also stands out against past annual figures. Samsung Electronics’ annual operating profit plunged from 43.4 trillion won in 2022 to 6.6 trillion won in 2023, before recovering to 32.7 trillion won in 2024 and 43.6 trillion won in 2025.
By contrast, operating profit in the third quarter alone was about 2.46 times last year’s full-year figure. In other words, the company earned far more in those three months than it did over the entire previous year.
Annual and quarterly results cover different periods and cannot be used for a direct comparison of growth rates. Still, they show how much semiconductor market conditions and Samsung Electronics’ earnings have changed.
Expanding AI investment fuels a memory-chip boom
The most important factors behind the improved results are expanding AI infrastructure investment worldwide and rising memory-chip prices.
Demand has increased not only for high-bandwidth memory (HBM) used in products from global AI chip companies including Nvidia, but also for conventional DRAM and NAND flash used in AI servers. Memory shortages and higher selling prices are occurring at the same time.
Because memory-chip makers cannot rapidly expand production capacity even when demand rises, supply shortfalls can push up selling prices and directly increase manufacturers’ profits.
Samsung Electronics has previously cited increased sales of high-value memory products and higher prices as major drivers of improved results in its semiconductor business. Market observers also believe the memory business accounted for a substantial share of this year’s third-quarter profitability gains.
Not every business division is in the same position, however.
Higher semiconductor prices benefit the memory business but can raise component costs for divisions that make smartphones and home appliances. Securities analysts have also raised the possibility of weaker profitability in finished-product businesses such as mobile devices and appliances.
Average price target: 495,227 won. What do brokerages expect?
With earnings at record highs, investors are focusing on how securities analysts value Samsung Electronics’ shares and the company’s future prospects.
According to financial information provider FnGuide, the average price target among 22 firms covering Samsung Electronics stood at 495,227 won as of October 7, about 84% above that day’s closing price of 268,500 won.
Individual brokerages’ targets vary considerably. Korea Investment & Securities set a target of 650,000 won on July 31, while SK Securities set one of 610,000 won on October 6. Mirae Asset Securities and BNK Investment & Securities, meanwhile, set targets of 400,000 won and 270,000 won, respectively.
The wide range reflects differing assumptions about how long memory-chip prices can hold up, future operating profit and how to value the company.
What will determine the next set of results?
Samsung Electronics has set a new earnings record, but whether it can keep growing at the same pace remains to be seen.
A key question is whether memory-chip prices will continue rising in the fourth quarter. Market research firm TrendForce forecasts that contract prices for conventional DRAM will increase 10–15% from the previous quarter, but expects the pace of price increases to slow.
It also matters whether increased supply of high-value products, including HBM, translates into higher sales volumes and profits. Even if AI server investment continues to grow, profitability could shift as competitors increase production capacity and customers change the pace of their investment.
Other factors to watch in assessing future results include the exchange-rate effects of a stronger won, higher component costs for the smartphone and appliance businesses as semiconductor prices rise, and whether losses in the non-memory business improve.
The third-quarter operating profit figure of 107.4 trillion won matters in its own right. But the central question going forward is how long the semiconductor market conditions that produced those earnings can last.
Samsung Electronics is scheduled to release final third-quarter results and divisional performance figures on October 29. The market’s attention is now shifting beyond the record itself to the fourth-quarter outlook and whether growth in the semiconductor industry can continue next year.
