The Samsung logo, representing the South Korean multinational conglomerate, South Korea’s largest chaebol and the world’s largest information technology company, consumer electronics maker, chip maker and smartphone maker, appears on their pavilion during the Mobile World Congress 2025 in Barcelona, Spain, March 5, 2025. (Photo by Joan Cros/NurPhoto via Getty Images)
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South Korean tech giant Samsung Electronics on Thursday reported third-quarter operating profit broadly in line with analysts’ expectations, as demand for advanced memory chips used in artificial intelligence applications continued to grow.
Following the announcement, Samsung shares were trading down 5%.
The company plans to increase sales of advanced memory chips used in AI applications and enter into long-term contracts to meet growing demand.
Here are Samsung’s third-quarter results compared to LSEG SmartEstimates, which are weighted based on more precise analyst forecasts:
- Income: 195.25 trillion won ($124 billion) versus 195.79 trillion won expected
- Operating result: 107.44 trillion won versus 107.66 trillion won expected
Samsung’s revenue increased 126.88% year-on-year and 13.85% year-on-year, while operating profit increased 783.11% year-on-year.
The company also announced 30 trillion won in cash dividends for the third quarter, equivalent to 4,601 won per common and preferred share.
The company plans to return an additional 55 trillion won to 75 trillion won to shareholders this year in dividends and share repurchases, as the board finalizes total shareholder returns and specific execution plans at a meeting scheduled for late January 2027.
Samsung said it became the first global technology company to surpass 100 trillion won in quarterly operating profit, while posting record revenue and profit for a fourth consecutive quarter.
Its semiconductor business recorded revenue of 147.1 trillion won and operating profit of 106.5 trillion won, driven by strong demand for AI-related memory chips.
Additionally, its memory business also reported record quarterly revenue and operating profit, supported by a significant acceleration in HBM4 sales and growing demand for server SSDs.
However, Josh Gilbert, senior analyst for APAC at investment platform eToro, appears unimpressed with these numbers as the results did not generate much enthusiasm in the market.
The market remains unimpressed.
Josh Gilbert
Senior APAC Analyst, eToro
“Investors have been so spoiled by the AI business that a record result is now seen as the bare minimum rather than a reason to celebrate,” Gilbert said, adding that Samsung’s chip business accounted for almost all of its third-quarter operating profit, highlighting its growing reliance on memory chips.
“Despite all the talk about Samsung being a diversified giant, anyone who owns shares today actually owns a memory maker with a phone business attached,” he said, asserting that the company’s fortunes now depend heavily on memory prices.
Looking ahead, the company expects investment in AI infrastructure to accelerate in 2027, with growing demand likely to further tighten memory supply.
Samsung also plans to increase sales of HBM, a type of high-performance memory used in AI chips, as well as other memory products used in servers and data storage.
In the third quarter, Samsung Electronics and five of its subsidiaries announced a combined $1 billion investment in KKR-backed Helix Digital Infrastructure. Samsung Electronics will invest $500 million, with the rest coming from its subsidiaries.
The tech giant had also announced a partnership with French AI startup Mistral AI to use AI technologies in its semiconductor operations, including chip design and manufacturing. The company also led Mistral’s Series D funding round.
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