Samsung posts KRW 107.4tn profit as AI memory sales rise, outlines KRW 84.4tn capex

Samsung Electronics reported third-quarter operating profit of KRW 107.44 trillion on October 29, as expanding sales of AI memory helped drive its semiconductor business. Its filing put revenue at KRW 195.25 trillion (up 126.88% year-over-year) and operating profit growth at 783.11%. Revenue and operating profit grew 13.85% and 20.06% sequentially. Expected 2026 capital expenditure is KRW 84.4 trillion, including infrastructure and customer-linked investment.

Device Solutions includes memory, system chips and foundry. The division reported KRW 147.1 trillion revenue and KRW 106.5 trillion operating profit. Memory revenue rose from KRW 120.8 trillion to KRW 140.7 trillion sequentially. Device eXperience (phones, TVs and appliances) reported KRW 52.1 trillion revenue and a KRW 0.8 trillion operating loss. Operating margins were 55% companywide and 72% for Device Solutions. Segment revenues include intersegment transactions.

Samsung prioritized AI products within limited production capacity. HBM4 sales expanded substantially, while server SSD demand was strong. Samsung attributed price increases across memory applications to server demand.

Samsung announced mass production and commercial shipments of its stacked HBM4 memory on February 12. The high-bandwidth memory combines stacked DRAM with a logic base die for fast data movement in AI computing. Samsung said it uses 1c DRAM and a 4-nanometer base die, specifying 11.7Gbps per pin and up to 3.3TB/s per stack. These company-reported specifications describe data-transfer capacity for AI computing. The new quarterly disclosure describes increased sales and their contribution to the memory business, following the earlier commercial-shipment announcement.

Investment follows AI demand, with annual spending still a forecast

Samsung expects fourth-quarter memory demand from new CPU and GPU platforms and plans to expand HBM and server memory and storage supply. It forecasts a larger AI-driven supply shortage in 2027 than in 2026.

A separate filing allocates KRW 76.8 trillion to Device Solutions and KRW 3.9 trillion to Samsung Display. It covers January 1–December 31. Semiconductor spending covers infrastructure for AI and future demand and customer-linked investment; display spending improves existing lines.

Reported capital spending was KRW 29 trillion in the third quarter and KRW 56.9 trillion over the first nine months. Samsung describes the plan as guidance for investors that may change with market conditions.

The 2024–2026 policy returns 50% of three-year free cash flow to shareholders. Samsung outlined KRW 90–110 trillion in annual shareholder returns on August 21. After KRW 35 trillion completed or planned, KRW 55–75 trillion remains for cash dividends and share repurchases/cancellations. The board will finalize amounts, policy and execution plans in late January 2027.

The board approved a third-quarter cash dividend totaling KRW 30.003 trillion. Both common and preferred shares receive KRW 4,601 per share, with payment scheduled for November 27. Eligibility follows the shareholder register at the September 30 record date. Those approved quarterly terms have a different timetable from the remaining annual return plan.

Versus the October 8 preliminary release, revenue increased KRW 0.25 trillion and operating profit KRW 0.04 trillion. It covers July 1 through September 30 on a consolidated basis. Samsung says the figures precede completion of the external auditor’s review and remain subject to change.