Samsung Electronics reported financial results for the second quarter ended June 30, 2026. The company posted KRW 171.5 trillion in consolidated revenue, a quarter-on-quarter increase of 28% and an all-time quarterly high. Operating profit also reached an all-time high, rising to KRW 89.5 trillion. Earnings per share for common and preferred shares increased 52% to KRW 10,849.
The Device Solutions (DS) Division posted a quarter-on-quarter sales increase of 56%, with the Memory Business setting an all-time high for quarterly revenue and operating profit. The Device eXperience (DX) Division posted a quarter-on-quarter sales decrease of 9%.
Device Solutions
The DS Division posted KRW 127.5 trillion in consolidated revenue and KRW 89.2 trillion in operating profit for the second quarter.
The Memory Business achieved a record quarter by addressing AI demand despite limited capacity, with a primary focus on server products. The continued industry-wide upward trend of prices also contributed to the earnings, according to the company.
Server revenue reached a record-high share of the sales mix. The business scaled up HBM4 sales and shipped what the company describes as the industry’s first HBM4E samples to major customers.
In the second half of 2026, the Memory Business expects demand centered on servers stemming from continued AI infrastructure capital expenditure and broader adoption of agentic AI. Demand growth for server DRAM, eSSDs, and HBM is expected to accelerate, which the company says is projected to keep the market undersupplied despite partial demand moderation in mobile and PCs.
The Memory Business plans to optimize its portfolio according to changes in demand by application and customer feedback. Supply constraints are expected to continue despite efforts to increase production.
The business plans to address demand with a focus on high-value-added products, including HBM4, DDR5, and SOCAMM2, while extending into next-generation AI platforms. This follows the industry’s first HBM4E sample shipment, as well as first-half 2026 market penetration of PCIe Gen6 and UFS 5.0 solutions.
The System LSI Business was affected by flagship seasonality and soft mobile demand in China, but sustained quarterly revenue through expanded sales of high-volume mobile SoCs and image sensors, driving first-half revenue to a record high. It secured orders for a next-generation flagship SoC and continued to build momentum from new business with major customers.
In the second half of 2026, the business expects rising component costs and soft consumer demand to persist. It will continue to drive sales of next-generation flagship SoCs while seeking new business for custom SoCs, and aims to strengthen its competitiveness in sensors and LSI products.
Earnings for the Foundry Business improved significantly prior to incentive-related provisions, driven by HBM base-die demand and orders from customers in the U.S. Design wins with major customers continued to expand, including 2nm HPC engagements.
In the second half of 2026, the Foundry Business plans to ramp up production of new mobile products based on the second-generation 2nm process and expand sales of LPU and base-die products based on the 4nm process. Amid rising demand across all process nodes from customers in the U.S. and China, the business is targeting double-digit revenue growth. It will also pursue growth via advanced nodes and the expansion of AI and HPC design wins.
Samsung Display
Samsung Display Corporation (SDC) posted KRW 7.5 trillion in consolidated revenue and KRW 0.7 trillion in operating profit for the second quarter.
For the small and medium display business, SDC reported an improvement in earnings based on demand for high-end mobile OLED products, while its large display business expanded sales volume and revenue on the growth of the gaming monitor market.
In the second half of 2026, SDC plans to focus on premium smartphone demand with low-power products and diversified form factors. It will pursue revenue growth through mass production of the 8.6G IT OLED line, and seeks to expand supply of differentiated products to the tablet, gaming, and automotive markets. The large display business will focus on sales growth with an expanded gaming monitor customer base and product lineup.
Mobile Experience and Networks
The MX and Networks Businesses posted KRW 33.2 trillion in consolidated revenue and reported an operating loss of KRW 0.7 trillion for the second quarter. Revenue grew year-on-year on sales of the Galaxy S26 series and Galaxy A series momentum, while earnings declined due to elevated component cost pressures across the industry.
In the second half of 2026, the MX Business plans to strengthen AI capabilities through personalized and intuitive experiences and drive market share growth centered on the Galaxy Z8 and S26 series. The business will also seek to expand its premium mix across the Galaxy ecosystem and deliver AI-driven experiences in new form factors with the launch of its Intelligent Eyewear. It will pursue efficiency initiatives to mitigate the impact of rising costs.
In the second quarter of 2026, the Networks Business reported an improvement in earnings quarter-on-quarter and year-on-year, supported by overseas sales expansion. In the second half of 2026, the business aims to secure profitability through new orders and cost discipline amid telco investment headwinds.
Consumer Electronics and Harman
The Visual Display (VD) and Digital Appliances (DA) Businesses posted KRW 14.5 trillion in consolidated revenue and recorded a slight operating loss for the second quarter.
The VD Business saw revenue and earnings increase year-on-year as a result of demand from major sporting events. Earnings declined quarter-on-quarter due to increased costs.
In the second half of 2026, the VD Business plans to address the AI TV market with differentiated customer experiences based on Vision AI while capturing seasonal demand through channel partnerships. The business also plans to grow its service business through diversification of its Samsung TV Plus content and expansion of its advertising business.
The DA Business experienced revenue growth from increased air conditioner demand, despite cost pressures weighing on earnings. In the second half of 2026, the business aims to expand AI-based product sales while pursuing profitability-driven channel diversification and product competitiveness.
Harman posted improved earnings on expanded automotive segment sales, as well as audio sales led by portable products. In the second half of 2026, it will address demand in automotive segments including the central compute unit, and expand audio sales based on an enhanced lineup and brand awareness.
