Samsung Electronics Reports Record Q2 2026 Financial Performance Driven by Device Solutions Division
Samsung Electronics has announced its financial results for the second quarter of 2026, which concluded on June 30. The company achieved a consolidated revenue of KRW 171.5 trillion, marking a substantial 28% increase quarter-on-quarter (QoQ) and setting a new quarterly revenue record. Operating profit also reached a record high of KRW 89.5 trillion. The earnings per share for both common and preferred stock surged by 52% to KRW 10,849, positioning Samsung among the top-performing global technology firms.
Device Solutions Division Leads Growth
The Device Solutions (DS) Division reported a 56% QoQ increase in sales, with the Memory Business achieving unprecedented levels of quarterly revenue and operating profit.
The DS Division recorded KRW 127.5 trillion in revenue and KRW 89.2 trillion in operating profit for the quarter. The Memory Business capitalized on the growing demand for AI products, particularly server-focused, amid limited production capacity and industry-wide price increases. It also maintained a competitive edge by introducing industry-leading server products, scaling up HBM4 sales, and introducing the first HBM4E samples to top-tier clients.
For the second half of 2026, the Memory Business anticipates strong server demand driven by expanded AI infrastructure investments and further adoption of AI technologies, sustaining market undersupply despite some demand moderation in mobile and PC sectors. The business plans to enhance its technology leadership, focusing on high-value-added products like HBM4, DDR5, and expanding into new AI platforms.
The System LSI Business, despite challenges from seasonality and reduced mobile demand in China, maintained revenue through increased sales of mobile SoCs and sensors, reaching record first-half revenue. It looks to mitigate rising component costs and soft consumer demand by advancing next-generation SoC sales and exploring new custom SoC opportunities.
The Foundry Business improved its earnings significantly, driven by demand for HBM base-die and robust orders from U.S. clients. It plans to expand its 2nm and 4nm process productions in the coming months, targeting double-digit revenue growth amid rising global demand.
Samsung Display Corporation Expands Product Offerings
Samsung Display Corporation (SDC) posted KRW 7.5 trillion in revenue with KRW 0.7 trillion in operating profit. Its small and medium display sector saw improved earnings from high-end mobile OLED products, while the large display segment benefited from increased gaming monitor demand.
In the upcoming months, SDC aims to enhance its premium smartphone offerings and diversify its display technologies across various markets, including tablets, gaming, and automotive sectors.
MX and Networks Businesses Focus on Flagship Products and Market Expansion
The MX and Networks Businesses generated KRW 33.2 trillion in revenue, though faced an operating loss of KRW 0.7 trillion due to high component costs. Despite this, the Galaxy S26 and A series saw solid sales growth.
Looking forward, the MX Business is set on expanding its flagship product sales with a focus on AI integration and new product launches such as the Galaxy Z8 and S26 series, while Networks aims to improve profitability through strategic order acquisitions and cost management.
CE Business and Harman Pursue Innovation and Market Expansion
The Visual Display and Digital Appliances Businesses reported KRW 14.5 trillion in revenue, with a slight operating loss due to cost increases. The VD Business plans to lead the AI TV segment by enhancing customer experiences and expanding its service business.
Harman showed improved earnings, benefiting from increased automotive and audio product sales. It intends to strengthen its market position by focusing on high-growth automotive segments and expanding its audio lineup.