Samsung earns record-breaking profit of $80.5 billion, thanks to memory chips

After posting its earnings estimates earlier this month, Samsung has announced a record-breaking operating profit of KRW 107.4 trillion (~$80.47 billion) for the third quarter (Q3 2026) of this year. Consolidated revenue reached KRW 195.3 trillion (~$146.33 billion).

This represents a year-on-year revenue growth of 126% and a massive 780% surge in profit. Both revenue and profit figures have broken all previous company records.

The majority of this revenue and profit came from the Device Solutions division, which designs and manufactures semiconductor chips. This division posted a revenue of KRW 147.1 trillion (~$110.21 billion) and an operating profit of KRW 106.5 trillion (~$79.79 billion). The unit has been supplying top-tier memory and storage chips to AI giants like AMD and Nvidia, and successfully scaled up sales of HBM4 chips and server SSDs for artificial intelligence (AI) data centers.

Samsung Foundry, a sub-division of Device Solutions that offers contract chip manufacturing for fabless companies, expects double-digit revenue growth in Q4 2026. It also plans to begin producing chips at its new fabrication plant in Taylor, Texas, in 2027.

System LSI, another sub-division, saw revenue and profit growth by selling more Exynos system-on-chip processors (used in Galaxy phones) and 200MP camera sensors.

Samsung MX, which includes the smartphone and cellular network infrastructure divisions, posted a revenue of KRW 37.7 trillion (~$28.25 billion). Despite strong demand for its high-end phones, the division reported an operating loss of KRW 0.6 trillion (~$450 million) during Q3 2026 due to rising memory chip costs.

The company expects sales growth toward the end of this year, driven by the upcoming Galaxy S26 series and the Galaxy Z Fold 8 series.

The South Korean firm's display manufacturing arm, which makes OLED panels for devices like laptops, phones, tablets, TVs, and smartwatches, posted a revenue of KRW 8.0 trillion (~$5.99 billion) and an operating profit of KRW 1.1 trillion (~$820 million). It supplied OLED panels for Apple's recently launched iPhone Duo, iPad Mini, iPad Pro, and MacBook Pro.

In 2027, Samsung Display aims to increase the sales mix of OLED panels for premium smartphones, such as foldables.

Samsung has been the world's biggest TV brand for 20 consecutive years. Its home appliances and TV divisions (Digital Appliances and Visual Display) posted a combined revenue of KRW 13.9 trillion (~$10.41 billion). They faced an operating loss of KRW 0.2 trillion (~$150 million) during Q3 2026, as TV sales dropped following the conclusion of the 2026 FIFA World Cup.

Samsung expects its full-year capital expenditure to be around KRW 84.4 trillion (~$63.24 billion). Of this total, KRW 76.8 trillion (~$57.54 billion) will be allocated to the semiconductor chip division to meet the strong demand for AI and high-performance computing (HPC) products.