Samsung Posts Strong Q3 Results, Eyes AI-Driven Growth

Memory and mobile divisions lead performance as company prepares for 2026 expansion.

Samsung Electronics has released its financial results for the third quarter of 2025, reporting consolidated revenue of KRW 86.1 trillion and operating profit of KRW 12.2 trillion. Compared to the previous quarter, revenue rose by 15.4 percent, while operating profit showed a notable increase. The Device Solutions (DS) Division contributed significantly, with a 19 percent quarter-on-quarter sales boost, driven by demand for HBM3E memory and server SSDs. Meanwhile, the Device eXperience (DX) Division saw an 11 percent rise in revenue, supported by new foldable phone launches and strong flagship sales.

Semiconductor Division Sets Revenue Records

The DS Division posted KRW 33.1 trillion in revenue and KRW 7.0 trillion in operating profit, marking a strong quarter for Samsung’s semiconductor business. Memory sales reached an all-time high, fueled by HBM3E mass production and growing demand across AI and server applications. HBM4 samples have already been shipped to key clients, indicating readiness for next-generation memory adoption. Reduced one-off costs and favorable pricing conditions also contributed to improved profitability.

Looking ahead, Samsung plans to expand sales of high-value server memory products, including 128GB DDR5 and 24Gb GDDR7. The company expects continued demand from AI and conventional servers, with HBM3E and high-density eSSDs playing a central role. In 2026, mass production of HBM4 will begin, alongside efforts to scale its sales base and expand capacity. Other memory offerings such as LPDDR5x and QLC SSDs will also be prioritized to meet AI-related requirements.

The System LSI Business faced challenges due to seasonal factors and inventory adjustments, despite stable SoC supply. In the next quarter, the focus will shift to premium SoCs and image sensors, aiming to offset weak demand. Plans for 2026 include enhancing the Exynos processor and leveraging advanced sensor technologies to expand market reach. The Foundry Business, meanwhile, improved earnings through better fab utilization and reduced costs, with record-high customer orders on advanced nodes.

Display and Mobile Divisions Maintain Momentum

Samsung Display Corporation (SDC) reported KRW 8.1 trillion in revenue and KRW 1.2 trillion in operating profit, supported by strong demand for flagship smartphone displays. Sales of large displays also increased, particularly in the gaming monitor segment. In Q4, SDC expects continued smartphone demand and aims to grow non-smartphone display sales, including QD-OLED monitors. For 2026, the company will focus on AI-optimized technologies and foldable innovations, while expanding OLED production through its new 8.6G IT line.

The Mobile eXperience (MX) and Networks Businesses posted KRW 34.1 trillion in revenue and KRW 3.6 trillion in operating profit. Galaxy Z Fold7 and other flagship models drove growth, alongside improved tablet and wearable sales. Seasonal promotions for AI smartphones like Galaxy S25 are planned to sustain momentum in Q4. In 2026, MX will pursue form factor innovation and broaden AI smartphone adoption to strengthen market share and maintain cost efficiency.

The Visual Display (VD) and Digital Appliances Businesses generated KRW 13.9 trillion in revenue but recorded a KRW 0.1 trillion operating loss. Despite solid sales of premium TVs such as Neo QLED and OLED, earnings declined due to heightened competition. Samsung aims to recover revenue in Q4 through targeted seasonal promotions focused on premium and large-screen models. Future plans include expanding Micro RGB TVs and enhancing AI features to improve customer experience and drive growth.

Strategic Outlook and Industry Positioning

Samsung’s Q3 performance reflects its ability to adapt to shifting market demands, particularly in AI and mobile technologies. The company’s emphasis on high-value memory products and advanced semiconductor nodes positions it well for continued growth. Collaborative efforts in AI product development and display innovation further support its competitive edge. As 2026 approaches, Samsung appears focused on scaling operations and maintaining leadership across multiple business segments.