The Samsung logo, which represents South Korea’s multinational manufacturing conglomerate, South Korea’s largest chaebol, and the world’s largest information technology company, consumer electronics manufacturer, chip manufacturer, and smartphone manufacturer, appeared at the Mobile World Congress 2025 pavilion in Barcelona, Spain on March 5, 2025. (Photo by Joan Cros/NurPhoto via Getty Images)
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South Korean technology giant samsung electronics reported third-quarter operating profit on Thursday, which was broadly in line with analysts’ expectations as demand for advanced memory chips used in artificial intelligence applications continues to grow.
Samsung shares traded down 5% following the announcement.
The company plans to increase sales of advanced memory chips used in AI applications and secure long-term contracts to meet growing demand.
Below is a comparison of Samsung’s third quarter results to LSEG SmartEstimates. These focus on more consistently accurate analyst forecasts.
Revenue: 195.25 trillion won ($124 billion) vs. 195.79 trillion won expected Operating profit: 107.44 trillion won vs. 107.66 trillion won expected
Samsung’s sales increased 126.88% year-on-year and 13.85% quarter-on-quarter, and operating profit increased 783.11% year-on-year.
The company also announced a cash dividend of 30 trillion won (equivalent to 4,601 won per common and preferred stock) for the third quarter.
The company plans to return an additional 55 trillion won to 75 trillion won to shareholders this year through dividends and stock buybacks, and the board of directors is scheduled to finalize the total shareholder return and specific implementation plan in late January 2027.
Samsung announced that it has become the first global technology company to exceed 100 trillion won in quarterly operating profit, posting record sales and profits for the fourth consecutive quarter.
The company’s semiconductor business posted sales of 147.1 trillion won and operating profit of 106.5 trillion won, driven by strong demand for AI-related memory chips.
In addition, the company’s memory business also achieved record quarterly sales and operating income, supported by strong sales growth in HBM4 and growing demand for solid-state drives for servers.
However, Josh Gilbert, principal analyst for APAC at investment platform eToro, didn’t seem thrilled with the numbers as the results failed to generate much enthusiasm in the market.
The market remained unimpressed.
josh gilbert
eToro, APAC Lead Analyst
“Investors have been so spoiled by AI deals that record results are now treated as the bare minimum rather than a reason to celebrate,” Gilbert said, noting that Samsung’s chip business accounted for nearly all of its third-quarter operating profit and its increased reliance on memory chips.
“There’s all this talk about Samsung being a diversified giant, but if you own the stock today, you’re actually owning a memory maker tied to the phone business,” he said, noting that the company’s fortunes now depend heavily on memory prices.
Looking ahead, the company predicts that investment in AI infrastructure will accelerate in 2027, and memory supply will become even tighter due to rising demand.
Samsung also plans to increase sales of HBM, a type of high-performance memory used in AI chips, along with other memory products used in servers and data storage.
In the third quarter, Samsung Electronics and five of its affiliates announced a combined $1 billion investment in Helix Digital Infrastructure, backed by KKR. Samsung Electronics will invest $500 million, with the remainder coming from affiliated companies.
The tech giant had also announced a partnership with French AI startup Mistral AI to leverage AI technology in its semiconductor business, including chip design and manufacturing. The company also led Mistral’s Series D funding round.
