Samsung reports new second-quarter records
Samsung Electronics said it generated KRW 171.5 trillion in consolidated revenue and KRW 89.5 trillion in operating profit for the quarter ended June 30, 2026. According to the company's official results published on July 30, revenue increased 28 percent from the previous quarter. Both revenue and operating profit set new quarterly records for Samsung. Earnings per share for common and preferred shares rose 52 percent to KRW 10,849.
The contribution from semiconductor operations was especially clear. The Device Solutions division reported KRW 127.5 trillion in consolidated revenue and KRW 89.2 trillion in operating profit. Its sales increased 56 percent from the previous quarter. Samsung said its memory business reached all-time quarterly highs for both revenue and operating profit.
AI demand supports the memory business
Samsung attributed the memory increase to demand for server products used in artificial intelligence infrastructure. The company said it prioritized server products within limited production capacity, while an industry-wide increase in prices also supported the results. Server revenue reached a record share of the memory business's sales mix.
On the product side, Samsung expanded HBM4 sales. The company also said it shipped the industry's first HBM4E samples to major customers. It noted that PCIe Gen6 and UFS 5.0 products entered the market during the first half of 2026. Samsung plans to continue focusing on higher-value products including HBM4, DDR5 and SOCAMM2.
Supply constraints may continue in the second half
Samsung's official outlook calls for robust server demand during the second half of 2026. The company expects AI infrastructure investment and broader adoption of agentic AI to accelerate demand for server DRAM, enterprise solid-state drives and high-bandwidth memory. It said the memory market may remain undersupplied even if demand from mobile devices and personal computers moderates.
Samsung expects supply constraints to continue despite efforts to increase production. In this environment, it plans to adjust its product portfolio according to demand by application and customer feedback. The company also intends to address strong demand with HBM4 and other advanced memory products. Its official statement did not provide a fixed date for the end of the supply imbalance.
Foundry and system chip plans
The foundry business improved as HBM base-die demand and strong orders from customers in the United States supported performance. Samsung said design wins with major customers continued to expand, citing engagement on 2-nanometer high-performance computing projects. The company plans to increase production of new mobile products using its second-generation 2-nanometer process in the second half.
Samsung also plans to expand sales of low-power processor and base-die products using its 4-nanometer process. With demand rising across process nodes from customers in the United States and China, the foundry business is targeting double-digit revenue growth. The System LSI business, meanwhile, faced soft mobile demand in China and seasonal effects related to flagship products.
The mobile business posts a loss
Sales at the Device eXperience division declined 9 percent from the previous quarter. The Mobile eXperience and Networks businesses reported KRW 33.2 trillion in consolidated revenue and an operating loss of KRW 0.7 trillion. Sales of the Galaxy S26 and Galaxy A series supported year-over-year revenue growth, but elevated component costs across the industry reduced profitability.
Samsung Display recorded KRW 7.5 trillion in revenue and KRW 0.7 trillion in operating profit for the quarter. Demand for premium mobile OLED products supported the small and medium display business. In large displays, growth in the gaming monitor market increased both sales volume and revenue.
A mixed picture across other businesses
The Visual Display and Digital Appliances businesses generated KRW 14.5 trillion in revenue and recorded a slight operating loss. Samsung said major sporting events supported television demand, while increased costs reduced profitability from the previous quarter. Harman delivered improved earnings as automotive segment sales expanded and portable audio products supported demand.
Samsung's official results show that record group performance was primarily supported by memory and AI infrastructure demand. During the same quarter, higher component costs created pressure in mobile devices and consumer electronics. The company's second-half plan centers on managing constrained supply of advanced memory products, increasing production on new processes and reducing the effect of costs in its device businesses.
