Samsung Electronics delivered its strongest-ever quarterly profit in the October–December period, buoyed by persistent demand for memory chips powering artificial intelligence servers. The company’s operating earnings climbed more than threefold, outstripping analyst expectations and underscoring robust pricing power in the semiconductor sector.
For the fourth quarter, the company posted revenue of 93.8 trillion Korean won ($65.58 billion), a year-on-year increase of 24% that set a new company record. Operating profit reached 20.1 trillion won, compared to 20.018 trillion won anticipated by the LSEG SmartEstimate, and far ahead of the 6.49 trillion won recorded in the same period last year.
Investor response was active at market open, with Samsung’s share price rising 2.58% before retreating to around 1% loss in morning trade.
The company’s semiconductor division was the primary driver, as profit for the unit jumped 470% to 16.4 trillion won. Samsung has concentrated significant resources from its Device Solutions (DS) Division on high-value chips, benefiting from widespread supply shortages as data center operators, including major AI processor manufacturers such as Nvidia, compete for available stock.
In contrast, Samsung’s mobile devices and network segment saw its operating income decline to 1.9 trillion won, marking a 9.5% year-over-year drop and a 45% decrease quarter over quarter. The group attributed the setback to reduced momentum from recent smartphone launches as well as heightened competition.
Despite these pressures, Samsung intends to focus on expanding AI functionality in its devices, highlighting the upcoming Galaxy S26 series launch as it implements new “Agentic AI experiences.”
Looking ahead, Samsung’s management expects AI and server demand to fuel continued growth in 2026, particularly for high-performance memory products. The company plans to optimize resources further and pursue stability in its flagship device supply to sustain profitability in a competitive environment.
At the same time, Samsung cautioned that the global rise in memory costs could burden its mobile and display operations, while noting uncertainties remain over global trade tariffs.
