Samsung Electronics (005930) investor relations material

Executive summary

• Achieved record-high quarterly revenue of KRW 171.5T in Q2 2026, up 28% QoQ and 130% YoY, with operating profit at KRW 89.5T, up 56% QoQ and 1,814% YoY, driven by AI technology leadership and robust demand across core businesses.

• Net profit rose 52% QoQ to KRW 71.6T; EPS increased 52% to KRW 10,849.

• Memory business set all-time highs in DRAM and NAND shipments, fueled by hyperscaler AI demand.

• Performance driven by technology leadership, strong AI server demand, and swift market response.

• Revenue for the first half of 2026 reached KRW 305.4T, up 98.7% YoY, with significant growth in the DS segment, which contributed 68.5% of total sales.

Financial highlights

• Revenue: KRW 171.5T (+28% QoQ, +130% YoY); Operating profit: KRW 89.5T (+56% QoQ, +1,814% YoY); Operating margin: 52% (up from 43%).

• Net profit surged to KRW 71.6T, 41.8% of sales, up from KRW 47.2T in 1Q 26.

• R&D expenses hit a quarterly record at KRW 16T (+KRW 5T QoQ), with H1 R&D at KRW 27.4T.

• CapEx for Q2: KRW 16.8T (KRW 15.4T for DS, KRW 0.7T for Display), up KRW 5.5T sequentially; H1 CapEx totaled KRW 27.9T.

• Cash and cash equivalents at period-end were KRW 92.9T, up from KRW 57.9T at the end of 2025.

Outlook and guidance

• Growth momentum expected to continue in H2, led by strong semiconductor demand and AI expansion.

• Memory business expects robust AI server demand to widen supply-demand gap into 2027-2028.

• S.LSI and Foundry targeting double-digit revenue growth, focusing on advanced nodes and AI/HPC design wins.

• Company will maintain annual dividend policy of KRW 9.8T and continue share buybacks.

• Ongoing investments in advanced process technology and capacity expansion are planned to support long-term growth.