Headquarters of Samsung in Mountain View, California, on October 28, 2018.
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Samsung Electronics reported a rebound in earnings on Thursday, with operating profit more than doubling from the previous quarter on strength from its chip business.
Here are Samsung’s third-quarter results compared with LSEG SmartEstimate, which is weighted toward forecasts from analysts who are more consistently accurate:
- Revenue: 86.1 trillion Korean won ($60.5 billion) vs. 85.93 trillion won
- Operating profit: 12.2 trillion won vs. 11.25 trillion won
The South Korean technology giant’s quarterly revenue was up 8.85% from a year earlier, while its first-quarter operating profit climbed 32.9% year-over-year.
Samsung shares popped nearly 4% in early trading in Asia.
The earnings represent a bounce back from the June quarter, which had been weighed down by a massive slump in Samsung’s chip business. Operating profit increased by 160% compared to June, while revenue increased by 15.5% over the same period.
Samsung Electronics, South Korea’s largest company by market capitalization, is a leading provider of memory chips, semiconductor foundry services and smartphones.
Samsung’s chip business reported a 19% increase in sales from the June quarter, with its memory business setting an all-time high for quarterly sales, driven by strong demand from artificial intelligence.
The third-quarter operating profit also beat Samsung’s own guidance of around 12.1 trillion Korean won.
Chip Business
Samsung Electronics’ chip business posted an operating profit of 7.0 trillion Korean won in the third quarter, up 81% from the same period last year, and an over tenfold increase from last quarter.
Chip revenue increased to 33.1 trillion won, up 13% from last year.
Also known as its Device Solutions division, Samsung’s chip business encompasses memory chips, semiconductor design and its foundry units.
The unit benefited from a favorable price environment, while quarterly revenues reached a record high on expanded sales of its high-bandwidth memory (HBM) chips — a type of memory used in artificial intelligence computing.
Samsung has found itself lagging behind memory rival SK Hynix in the HBM market, after it was slow to secure major contracts with leading AI chip Nvidia. However, in a positive sign for the company, it reportedly passed Nvidia’s qualification tests for an advanced HBM chip last month.
A report from Counterpoint Research earlier this month found that Samsung had reclaimed the top spot in the memory market ahead of SK Hynix in the third quarter after falling behind its competitor for the first time the quarter prior.
MS Hwang, research director at Counterpoint Research, told CNBC that Samsung’s third-quarter performance was a clear result of a broader “memory market boom,” as well as rising prices for general-purpose memory.
Heading into 2026, Samsung said its memory business will focus on the mass production of its next-generation HBM technology, HBM4.
Smartphones
Samsung’s mobile experience and network businesses, tasked with developing and selling smartphones, tablets, wearables and other devices, reported a rise in both sales and profit.
The unit posted an operating profit of 3.6 trillion won in the third quarter, up about 28% from the same period last year.
The company said earnings were driven by robust flagship smartphone sales, including the launch of its Galaxy Z Fold7 device.
Samsung forecasted that the rapid growth of the AI industry would open up new market opportunities for both its devices and chip businesses in the current quarter.
