Samsung Electronics has reported record quarterly revenue of 195.3 trillion South Korean won ($136 billion) for the three months to 30 September, as demand for artificial intelligence (AI) infrastructure boosted its semiconductor business.
The South Korean-based technology group’s operating profit reached KRW107.4 trillion ($75 billion), making it the first technology company to report quarterly operating profit exceeding KRW100 trillion, according to its latest financial results.
Revenue increased 14% quarter-on-quarter, while the Device Solutions division, which houses its semiconductor operations, recorded revenue of KRW147.1 trillion ($102.5 billion) and operating profit of KRW106.5 trillion ($74.3 billion).
The division’s performance was driven by record quarterly revenue and operating profit from its Memory Business, which benefited from strong server demand, rising market prices and growing demand for AI-related products.
In a statement, Samsung says it has significantly increased sales of high-bandwidth memory, while also responding to growing demand for server solid-state drives (SSDs).
The company expects demand for AI infrastructure to continue growing in the fourth quarter, with investment in new central processing unit and graphics processing unit platforms supporting demand for memory products.
It also anticipates rising demand for quad-level cell SSDs as personal AI agent services expand.
Samsung expects AI infrastructure capital expenditure to reach historic levels in 2027, with AI-driven demand for memory products significantly outstripping industry supply compared with 2026.
The company plans to strengthen its position in the high-end memory market by increasing sales of high-bandwidth memory, server dynamic random-access memory and SSDs, while securing multi-year contracts and preparing new products for AI applications.
Mixed performance
Samsung’s Device eXperience division, which includes mobile devices and consumer electronics, recorded an 8% quarter-on-quarter increase in revenue but reported an operating loss of KRW800 billion ($597 million).
The Mobile eXperience and Networks businesses generated combined revenue of KRW37.7 trillion ($28.1 billion), while recording an operating loss of KRW600 billion ($448 million).
Samsung attributes the mobile business’s revenue growth to new flagship launches, including foldable devices. However, earnings declined year-on-year because of cost pressures.
The company plans to focus on sales of its Galaxy S26 series and Galaxy Z Fold8 range during the fourth quarter, alongside new ecosystem products.
Samsung Display reported revenue of KRW8 trillion ($6 billion) and operating profit of KRW1.1 trillion ($821 million).
Meanwhile, the Visual Display and Digital Appliances businesses recorded combined revenue of KRW13.9 trillion ($10.4 billion) and an operating loss of KRW200 billion ($149 million), as higher costs weighed on earnings.
Samsung says its Harman business improved earnings on stronger audio and automotive sales, supported partly by non-recurring US tariff refunds.
Shareholder returns
Samsung’s capital expenditure reached KRW29 trillion ($21.6 billion) in the third quarter, up KRW12.2 trillion quarter-on-quarter and KRW19.8 trillion year-on-year.
Of the quarterly investment, KRW27.2 trillion ($20.3 billion) went to the Device Solutions division, reflecting spending on semiconductor infrastructure to meet demand for AI and high-performance computing.
Capital expenditure for the first nine months of 2026 totalled KRW56.9 trillion ($42.5 billion).
The company expects full-year capital expenditure to reach about KRW84.4 trillion ($63 billion), including KRW76.8 trillion ($57.3 billion) allocated to the Device Solutions division.
Samsung also outlined plans for shareholder returns totalling an estimated KRW90 trillion to KRW110 trillion ($67.2 billion to $82.1 billion) for 2026. Of this amount, KRW35 trillion has already been planned or completed.
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