Quarterly revenue of KRW 171.5 trillion, operating profit at KRW 89.5 trillion
Samsung Electronics today reported financial results for the second quarter ended June 30, 2026.
The Company posted KRW 171.5 trillion in consolidated revenue, another all-time quarterly high, representing a quarter-on-quarter (QoQ) increase of 28%. Operating profit also reached another all-time high, increasing to KRW 89.5 trillion. Earnings per share for both common and preferred shares increased by 52% to KRW 10,849, among the highest levels for global tech companies.
The Device Solutions (DS) Division posted a QoQ sales increase of 56%, with the Memory Business setting an all-time high for quarterly revenue and operating profit.
The Device eXperience (DX) Division posted a QoQ sales decrease of 9%.
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DS To Maintain Growth Momentum While Advancing Technology Leadership
The DS Division posted KRW 127.5 trillion in consolidated revenue and KRW 89.2 trillion in operating profit for the second quarter.
The Memory Business achieved another record-breaking quarter by proactively addressing AI demand despite limited capacity with a primary focus on server products. The continued industry-wide upward trend of prices also contributed to the record earnings.
Additionally, the Business solidified market competitiveness via industry-leading products, with server revenue achieving a record-high share of the sales mix. The Business scaled up HBM4 sales with industry-leading performance and further strengthened technology competitiveness by shipping the industry’s first HBM4E samples to major customers.
In H2 2026, the Memory Business expects robust demand centered on servers stemming from continued AI infrastructure capex and broader adoption of agentic AI. Meanwhile, growth in demand for server DRAM, eSSDs, and HBM is expected to accelerate. This is projected to keep the market undersupplied, despite partial demand moderation in mobile and PCs.
The Memory Business also plans to continue setting the pace for the market via technology leadership, seeking to optimize its portfolio in consideration of changes in demand by application and according to customer feedback. Despite efforts to increase production, supply constraints are expected to continue.
The Business also plans to lead the market by addressing strong demand with a focus on high-value-added products, such as HBM4, DDR5, SOCAMM2 and others, while extending its leadership into next-generation AI platforms. This follows the industry’s first HBM4E sample shipment, as well as the H1 2026 market penetration of PCIe Gen6 and UFS 5.0 solutions.
The System LSI Business was impacted by flagship seasonality and soft mobile demand in China, yet managed to sustain quarterly revenue through expanded sales of high-volume mobile SoCs and image sensors, driving first-half revenue to a record high. It secured orders for a next-generation flagship SoC and continued to build momentum on the back of new business from major customers.
In H2 2026, the Business expects rising component costs and soft consumer demand to persist. However, it will continue to drive sales of next-generation flagship SoCs while seeking new business for custom SoCs, while also aiming to strengthen its competitiveness in sensors and LSI products.
Earnings for the Foundry Business improved significantly prior to incentive-related provisions, driven by HBM base-die demand and strong orders from customers in the U.S. Design wins with major customers continued to expand, with 2nm HPC engagements as a notable example.
Looking ahead to H2 2026, the Foundry Business plans to ramp up production of new mobile products based on the second-generation 2nm process and expand sales of LPU and base-die products based on the 4nm process. Amid rising demand across all process nodes from customers in the U.S. and China, the Business is targeting double-digit revenue growth. Additionally, the Business will deliver mid-to-long-term growth via advanced nodes and the expansion of AI and HPC design wins.
SDC To Drive Growth Through Differentiated Display Technologies
Samsung Display Corporation (SDC) posted KRW 7.5 trillion in consolidated revenue and KRW 0.7 trillion in operating profit for the second quarter.
For the small and medium display business, SDC reported an improvement in earnings based on solid demand for high-end mobile OLED products, while its large display business expanded sales volume and revenue on the growth of the gaming monitor market.
In H2 2026, SDC plans to focus on addressing premium smartphone demand with low-power products and diversified form factors. It will also pursue revenue growth through timely mass production of the 8.6G IT OLED line, as it seeks to expand supply of differentiated products to the tablet, gaming, and automotive markets. The large display business will focus on driving sales growth with an expanded gaming monitor customer base and strengthened product lineup.
MX To Expand Flagship-Led Sales With Competitiveness of New Products
The MX and Networks Businesses posted KRW 33.2 trillion in consolidated revenue and reported an operating loss of KRW 0.7 trillion for the second quarter. While revenue grew year-on-year (YoY) on solid sales of the Galaxy S26 series and strong Galaxy A series momentum, earnings declined due to elevated component cost pressures across the industry.
In H2 2026, the MX Business plans to strengthen AI leadership through personalized and intuitive experiences and drive overall market share growth based on flagship-first expansion centered on the new Galaxy Z8 and S26 series. The Business will also seek to enhance its premium mix across the Galaxy ecosystem and deliver AI-driven experiences in new form factors with the launch of its Intelligent Eyewear. Additionally, it will pursue efficiency initiatives to mitigate the impact of rising costs.
In Q2 2026, the Networks Business reported an improvement in earnings QoQ and YoY, supported by overseas sales expansion. In H2 2026, the Business aims to secure profitability through new orders and structural cost discipline amid telco investment headwinds.
CE Business and Harman To Further Differentiate Product Offerings Through Innovation
The Visual Display (VD) and Digital Appliances (DA) Businesses posted KRW 14.5 trillion in consolidated revenue, and recorded a slight operating loss for the second quarter.
The VD Business saw revenue and earnings increase YoY as a result of high demand from major sporting events. However, earnings declined QoQ due to increased costs.
In H2 2026, the VD Business will lead the AI TV market with differentiated customer experiences based on Vision AI while capturing seasonal demand through strengthened channel partnerships. The Business will also enhance TV market leadership and profitability by growing its service business through the diversification of its Samsung TV Plus content and expansion of its advertising business.
Meanwhile, the DA Business experienced revenue growth from increased air conditioner demand, despite cost pressures weighing on earnings. In H2 2026, the Business aims to strengthen market leadership through the expansion of AI-based product sales while pursuing profitability-driven channel diversification and enhanced product competitiveness.
Harman posted improved earnings on expanded automotive segment sales, as well as strong audio sales led by portable products. In H2 2026, it will seek to address demand in high-growth automotive segments, including the central compute unit. It will also expand audio sales based on an enhanced lineup and brand awareness, while maintaining stable growth momentum through revenue expansion across the automotive and audio businesses.
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