Friday, July 31, 2026

Samsung's Q2 2026 Results: Chip Sales Soar, Smartphone Division Bleeds!

Samsung's Q2 2026 Results: Chip Sales Soar, Smartphone Division Bleeds!

Samsung Electronics announced its final revenue figures for the second quarter of 2026. The company recorded record revenue (171.5 trillion KRW / $119 billion) and record profit (89.5 trillion KRW / $62 billion) for the quarter.

AI Chip Business Division Achieves Record Quarter

Samsung's revenue increased by 28% compared to Q1 2026, and approximately 130% compared to Q2 2025. Its profit surged by over 1800%. These record figures were largely driven by sales of memory chips, including DRAM, HBM, and NAND flash.

Earnings per share reached 10,849 KRW, marking a 52% increase, which is one of the highest figures reported among global technology companies.

Samsung's Device Solutions (DS) division, which designs and manufactures semiconductor chips, saw its revenue increase by 56% compared to Q1 2026. The division generated 127.5 trillion KRW ($88 billion) in revenue and 89.2 trillion KRW ($61 billion) in profit.

The Memory Business division, selling DRAM, HBM, and NAND flash chips, reported record revenue and profit due to extremely high demand and increased memory chip prices.

The System LSI division, part of Samsung's Device Solutions business unit, achieved record revenue in the first half of this year thanks to increasing sales of Exynos chips and ISOCELL camera sensors. The company managed this despite challenging conditions in the smartphone market and weak demand in China. The company aims for double-digit revenue growth by producing chips on advanced process nodes, including 2nm and 4nm, for consumers in China and the US.

Smartphone Division Reports Loss for the First Time

The DX (Device eXperience) division, which sells mobile phones, TVs, and home appliances, reported a loss of approximately 800 billion KRW ($555 million). The majority of this loss ($486 million) came from Samsung MX, the company's mobile division. This business unit recorded a loss for the first time in Samsung's history. Despite strong sales of the Galaxy S26 series, the company's revenue increased to 33.2 trillion KRW ($23 billion) compared to Q1 2026. However, astronomically high memory chip prices increased production costs, leading to an overall loss for the mobile division. Samsung states it will improve business efficiency to mitigate the impact of high memory chip prices.

Samsung Networks, part of Samsung DX and selling network hardware to cellular operators, recorded improved revenue compared to Q2 2025 and Q1 2026.

The Visual Display division, which handles TV and monitor sales, and the Digital Appliances (DA) division, which sells home appliances, reported a consolidated revenue of 14.5 trillion KRW ($10 billion) and a loss of 0.01 trillion KRW ($6.9 million). Samsung's TV sales increased in Q2 2026 due to the FIFA World Cup, but profit margins declined due to higher production costs. Revenue from home appliance sales increased due to strong demand for air conditioners. The Digital Appliances division plans to increase profitability by selling more high-end devices with smart wireless connectivity and AI-powered features.

Harman International, owned by Samsung Electronics, sells digital cockpit solutions for modern vehicles, including electric cars. It also sells headphones, speakers, and soundbars under brands like AKG, Harman Kardon, Infinity, and JBL. This business unit also generated 4.6 trillion KRW ($3 billion) in revenue and 400 billion KRW ($278 million) in profit.

Samsung Display, which produces OLED panels for various devices from phones to laptops, monitors, and televisions, achieved 7.5 trillion KRW ($5 billion) in revenue and 0.7 trillion KRW ($486 million) in profit. OLED panel sales for smartphones and tablets increased due to high demand, while monitor OLED panel sales also improved with an increase in gaming monitor sales.

Samsung plans to increase its revenue by starting mass production on its 8.6G IT OLED production line. Samsung Display could use this facility to produce advanced OLED panels for Apple's upcoming MacBook Ultra models.

Samsung Q2 2026 Results

  • Operating Profit: $62 billion (+1,814% year-on-year increase)
  • Net Profit: $49 billion (+1,304% year-on-year increase)
  • Earnings Per Share (EPS): $0.0075
  • R&D Investment: $11 billion (+78% year-on-year increase)
  • DS (Semiconductor) Revenue: $88 billion (+357% year-on-year increase)
  • Memory Revenue: $83 billion (+471% year-on-year increase)
  • DX Revenue: $33 billion (+10% year-on-year increase)
  • SDC Revenue: $5 billion (+17% year-on-year increase)
  • Harman Revenue: $3 billion (+19% year-on-year increase)

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