Samsung Electronics

Samsung Electronics has published its preliminary guidance for the second quarter of 2026, confirming unprecedented growth in both revenue and profitability compared to the same period last year. However, the results present a contrasting picture: while operating profit exceeded market expectations, revenues fell slightly short of analysts' estimates.

According to the information released by the company, it expects to close the quarter with consolidated revenues of approximately 171 trillion won (around 112 billion dollars) and an operating profit of 89.4 trillion won (approximately 58.4 billion dollars), 19 times higher than the same period in 2025. Korean regulations require the communication of a central value rather than a range, but Samsung specified that the estimates are between 170 and 172 trillion won in revenue and between 89.3 and 89.5 trillion won in operating profit.

The comparison with previous periods shows a significant acceleration. In the first quarter of 2026, Samsung recorded revenues of 133.87 trillion won and an operating profit of 57.23 trillion, while in the second quarter of 2025, the values were 74.57 trillion and just 4.68 trillion won, respectively.

On the market expectation front, the revenue figure fell slightly below consensus, which indicated about 172.2 trillion won. Conversely, the situation for operating profit was different, resulting in a number that exceeded analysts' forecasts, which estimated around 85 trillion won (55.6 billion dollars).

The main driver of growth continues to be the Device Solutions (DS) division, which includes the semiconductor business. The strong demand for DRAM and HBM memories, fueled by the ongoing expansion of AI-dedicated infrastructures, is supporting extremely high margins and significantly contributing to the group’s financial results.

In contrast, the mobile sector continues to show signs of weakness, confirming that the mobile device business is going through a much more complex phase than the semiconductor sector. Korean analysts claim that Samsung's semiconductor division has dragged its mobile division, called MX, into a loss; a loss of around 1 trillion won, equivalent to about 650 million dollars, is being discussed.

Period	Revenues (trillions of won)	Operating Profit (trillions of won)
Q2 2025	74.57	4.68
Q1 2026	133.87	57.23
Q2 2026 (guidance)	171.00	89.40

Recently, Kim Yong-kwan, president and head of strategy for the Device Solutions division, stated that Samsung expects to meet market expectations for the entire 2026 fiscal year. Analysts' estimates indicate an annual operating profit close to 300 trillion won, a level that would represent the best result in the company's history.

At the same time, Samsung is reportedly negotiating with customers in the DRAM market for a further price increase for the third quarter of 2026, with increases that could reach up to 20% compared to the previous quarter. This would be yet another increase after a 90% hike applied in the first quarter relative to the reference prices of the fourth quarter of 2025 and following the subsequent increase of between 50% and 60% implemented in the second quarter.