Samsung Guides to Record 107.4 Trillion Won Q3 Operating Profit on AI Memory Demand
The preliminary figure is the first quarterly operating profit above 100 trillion won for a tech company, according to the Korea Herald.
Samsung Electronics said on Thursday that its third-quarter operating profit is expected to reach about 107.4 trillion won (roughly $80 billion), a record, on sales of about 195 trillion won, according to The Korea Herald.
The numbers
- Operating profit: about 107.4 trillion won, up an estimated 782.5% from a year earlier
- Revenue: about 195 trillion won, up 126.6% year over year
- Previous quarter: operating profit of 89.4 trillion won, per the Herald
- Full results: due later this month
The Herald reports it is the first time a technology company has posted quarterly operating profit above 100 trillion won, with Saudi Aramco the only other company to pass that mark. Samsung's preliminary guidance does not break results down by division.
What drove it
The Herald attributes the jump mainly to demand for high-bandwidth memory (HBM) used in AI computing and to sharply higher prices for conventional memory chips. It cites securities-firm estimates that DRAM and NAND prices rose 15% and 18% in the quarter.
Analyst estimates quoted by the paper put the memory business at about 110 trillion won in operating profit. Samsung Display is estimated at roughly 1 trillion won and Harman at about 400 billion won.
Where costs bit
The same estimates suggest higher memory costs squeezed Samsung's own mobile division, which is estimated to have lost about 1.5 trillion won, while TVs and home appliances likely posted combined losses of 700 billion to 800 billion won. A stronger won also reduced the won value of dollar-denominated chip sales.
Samsung shares fell 1.86% to 263,500 won on the day despite the record guidance, the Herald reported.
Context
The result lands as the AI build-out continues to strain memory supply. TSMC reported this week that its September revenue rose 54.6% from a year earlier, and AMD's chief executive said the company plans to raise chip supply substantially in 2027. Samsung will publish detailed divisional results later in October, when its earnings call is expected to give a fuller picture of HBM shipments and pricing.
Samsung's earnings guidance is a preliminary estimate under Korean disclosure rules and may differ from the final figures.
