Samsung Electronics, the world's largest memory chipmaker, released preliminary earnings guidance for the third quarter of 2026, projecting an operating profit of 107.4 trillion Korean won, which converts to approximately $80.1 billion. This figure represents a 782.5% increase from the operating profit reported in the third quarter of 2025 and is the first time a South Korean company has exceeded 100 trillion won in a single quarter. Consolidated sales are estimated at 195 trillion won, a 126.6% rise year-on-year. The company is expected to release its full financial report, including a detailed breakdown by business division, on October 29.
The significant surge in profit is largely driven by the high demand for memory chips essential for artificial intelligence applications and data centers. The rapid expansion of AI infrastructure has outpaced the supply growth of traditional memory chips, leading to higher prices for DRAM, NAND flash, and high-bandwidth memory (HBM). This supply-demand imbalance is projected to continue into 2027 and potentially 2028. Samsung, along with competitors SK Hynix and Micron Technology, are key suppliers of these advanced memory components.
Despite the record overall profit, some segments of Samsung's business face challenges. Analysts estimate that while the semiconductor division, particularly memory chips, is the primary driver of earnings, the company's mobile and consumer electronics divisions may experience pressure from increased component costs. Samsung's foundry and system LSI businesses are also estimated to be operating at a loss, partly due to chip fabrication costs.
Samsung's latest foldable devices, the Galaxy Z Fold8 and Z Flip8, which became available on August 7, 2026, were anticipated to contribute to sales. Pre-orders for these devices began on July 22, 2026. The Galaxy Z Fold8 series introduced a "Wide" variant and featured enhanced AI capabilities and camera improvements. However, despite strong initial sales for these foldable phones, the mobile unit has reportedly faced losses due to rising memory chip prices.
The preliminary operating profit of 107.4 trillion won surpassed the LSEG SmartEstimate of 106.1 trillion won, but it fell slightly short of some higher analyst expectations, such as Bloomberg's forecast of 108.67 trillion won. Following the announcement, Samsung's shares experienced a slight decline in Seoul trading, with investors focusing on the discrepancy between the record results and elevated market expectations surrounding the AI chip boom.