Samsung posts record operating profit of 107.44 trillion won in Q3 and stock falls despite results

South Korea's Samsung Electronics, the world's largest maker of memory chips, said on Thursday, October 29, 2026, it posted a record net profit of 75.13 trillion won (about $56.2 billion) in the third quarter, up 514.6 percent from 12.22 trillion won in the same period last year, driven by rising demand for memory chips used in AI servers.

Operating profit jumped 783.1 percent year-on-year to 107.44 trillion won (about $80 billion), while revenue rose 126.9 percent to 195.25 trillion won, making the company the first tech firm in the world to surpass 100 trillion won in quarterly operating profit. On a quarterly basis, revenue grew 13.9 percent and operating profit 20.1 percent, with an operating margin of 55 percent, marking record quarterly revenue and profit for the fourth consecutive quarter.

Chips account for 99 percent of the profits

The semiconductor division reported revenue of 147.1 trillion won and operating profit of 106.5 trillion won, equivalent to 99.1 percent of the company's total profit. The memory segment achieved unprecedented quarterly revenue and profit after expanding sales of sixth-generation high-bandwidth memory known as HBM4, meeting increased demand for server-targeted storage units, and amid price increases across applications.

Foundry results also improved thanks to growth in sales of core high-bandwidth memory chips and expanded sales of advanced manufacturing technologies, with continued orders for 2-nanometer technology from major data center operators. The company said its new plant in Taylor, Texas, is expected to begin operations during 2027.

By contrast, the devices division, which includes mobile phones, TVs and home appliances, posted an operating loss of 0.8 trillion won for the second consecutive quarter, despite revenue rising to 52.1 trillion won aided by launches of new foldable phones, due to higher component costs.

Outlook: tighter supply expected in 2027

The company expects memory chip demand to continue growing in the fourth quarter as investment in AI infrastructure continues, saying capital expenditure on that infrastructure will reach historic levels in 2027 and that demand will exceed supply by a larger margin than seen this year. The foundry business is forecast to see revenue growth of more than 10 percent in the fourth quarter.

30 trillion won in payouts

The board approved cash dividends for the third quarter of 4,601 won per common and preferred share, totaling 30 trillion won to be paid on November 27. The company estimates total shareholder returns for 2026 between 90 and 110 trillion won, of which 35 trillion won has been announced or executed; the remaining 55 to 75 trillion won will be returned via cash dividends and large share buybacks and cancellations, with the board set to finalize details in late January 2027.

Stock falls despite the record numbers

Despite the record figures, Samsung shares closed down 4.13 percent at 232,000 won, as the results were slightly below analysts' estimates, which projected operating profit of about 107.66 trillion won and revenue of about 195.79 trillion won, and as the absence of detailed shareholder return plans disappointed investors. The Kospi index in Seoul fell 1.24 percent to 5,937.66 points after touching 6,100 points at the start of trading, which coincided with the US Federal Reserve holding interest ratesMeanwhile, SK Hynix shares rose 2.62 percent.

The results come a day after the local rival announced SK Hynix's record operating profit of 83.33 trillion won, which pushed the Kospi above 6,000 points, and two days after data showed South Korea's economy grew 1 percent in the third quarter driven by chip exports.