Samsung Electronics reported a record quarterly operating profit and revenue for the second quarter of 2026, driven by surging demand for AI server chips — even as its mobile and networks business swung to an operating loss.
The company posted operating profit of 89.5 trillion won for the quarter ended June 30, a 1,814% increase year on year, with the sequential gain from the prior quarter coming in at 56%. Revenue reached 171.5 trillion won, up 130% year on year and 28% quarter on quarter, also a record. Earnings per share rose 52% to 10,849 won.
The result beat analyst expectations for operating profit of 88.13 trillion won, while revenue came in just below the expected 172.65 trillion won, according to CNBC.
Samsung’s Device Solutions division, which houses its memory chip operations, was the engine of the quarter. The division posted 127.5 trillion won in revenue and 89.2 trillion won in operating profit, the company said. It cited AI server demand as the primary driver, with server products commanding a record share of the sales mix. Samsung said it ramped HBM4 volumes and delivered the industry’s initial HBM4E samples to leading customers; HBM4 is its sixth-generation high-bandwidth memory product built to support advanced AI processors.
The mobile and networks business told a different story. The MX and Networks unit posted 33.2 trillion won in revenue but recorded an operating loss of 700 billion won for the quarter, the company said. Revenue climbed compared with a year earlier, lifted by the Galaxy S26 series and a strong showing from the Galaxy A lineup, but surging component costs across the industry wiped out any margin. The same semiconductor boom fueling Samsung’s chip division is squeezing its handset operations, as component prices rise.
Samsung’s consumer electronics unit also recorded a slight operating loss, while Samsung Display Corporation posted 7.5 trillion won in revenue and 700 billion won in operating profit.
Looking to the back half of 2026, Samsung said server memory demand should remain strong, underpinned by continued AI infrastructure spending and the expanding reach of agentic AI. Samsung warned that supply tightness will carry into 2027 and said a growing number of customers are pursuing longer-term procurement contracts to guarantee access to capacity as AI demand accelerates.
Samsung said it has locked in contracts with its five largest global data center clients and is close to completing deals with another five sizable accounts. The results come as Samsung and SK Hynix announced major memory chip supply agreements with leading U.S. technology companies during South Korean President Lee Jae Myung’s visit to San Francisco last week.
Samsung stock closed 0.72% lower on Thursday.
