Samsung shares fell by 2.69% despite record profit

Samsung reported a record quarterly operating profit of 107.4 trillion won, approximately 80 billion dollars. Revenue increased by 14 percent to 195.3 trillion won. However, shares fell by 2.69 percent to 235,500 won as soon as the division results were announced.

NEWS TEXTSamsung reported a record quarterly operating profit of 107.4 trillion won, approximately 80 billion dollars. Revenue reached 195.3 trillion won, 14 percent more than the previous quarter. However, the company's shares fell by 2.69 percent to 235,500 won by 10:11 a.m. Korean time on Thursday, shortly after the results were published. Before the publication, the shares were trading higher, adding to a 9 percent rise on Wednesday following SK Hynix's record quarter, but turned downwards when the results were released at 10:00.

Samsung had already estimated the same profit size on October 8, so the new information on Thursday was the performance of each division.

Chips contributed almost everything

The Device Solutions division, which produces chips, earned 106.5 trillion won in operating profit. Its memory business set records in sales and profit, and sales of HBM4, a memory chip for AI servers, grew significantly. Samsung Display added 1.1 trillion won, while the company's consumer business remained in the red.

Phones and TVs in the red

The Device eXperience division, responsible for phones, TVs, and home appliances, lost 0.8 trillion won. The mobile division and networks lost 0.6 trillion won after 0.7 trillion in the second quarter. Revenue increased to 37.7 trillion from 34.1 trillion a year earlier, when the division earned 3.6 trillion. Samsung explained the profit decline by cost pressures, and in the second quarter pointed to increased component costs in the industry. The loss in TV and home appliances expanded from a small one in the second quarter to 0.2 trillion won due to rising raw material and logistics costs.

Dividends

Samsung announced a third-quarter dividend of 4,601 won per share, totaling 30 trillion won. From the 2026 fund return budget, 55–75 trillion won will remain, including significant buyback and redemption of shares along with cash dividends. The amount will be approved by the board of directors at a meeting in late January 2027. A day earlier, SK Hynix announced a 100 trillion won return plan, and its shares rose by 10.9 percent.

Samsung's memory business expects that AI demand in 2027 will significantly exceed the industry's supply, with a larger gap than in 2026. The company forecasts capital expenditures of about 84.4 trillion won this year, with 76.8 trillion for chips.