Samsung Electronics Reports Record Q3 Operating Profit of 107.4 Trillion Won, States 2027 HBM Capacity Is Sold Out
Samsung Electronics announced its third-quarter results, with semiconductor operations driving operating profit past the 100 trillion won mark. Management confirmed that High Bandwidth Memory (HBM) supply for 2027 is fully committed, and long-term agreements are expanding from AI servers to mobile and automotive sectors.
South Korean tech giant Samsung Electronics released its third-quarter financial results on October 29, 2026. The report shows consolidated revenue of 195.3 trillion won and an operating profit of 107.4 trillion won. This figure makes Samsung the first global technology company to surpass 100 trillion won in quarterly operating profit, driven primarily by the explosive growth in artificial intelligence (AI) semiconductor demand.
In the Device Solutions (DS) division, Samsung achieved sales of 147.1 trillion won and an operating profit of 106.5 trillion won. The memory business alone saw sales surge 427% year-over-year to 140.7 trillion won. Notably, sales of fourth-generation High Bandwidth Memory (HBM4) more than tripled quarter-over-quarter, accounting for 60% of total HBM revenue, marking a significant improvement in Samsung's position within the high-end AI chip supply chain.
Addressing market concerns about capacity, Kim Jae-jun, Executive Vice President and Head of Strategic Marketing at Samsung's Memory Business Unit, stated that negotiations for 2027 HBM supply at target prices are complete and the capacity is currently "sold out." He further predicted that tight supply conditions would persist until 2028. Additionally, Samsung is negotiating new Long-Term Agreements (LTAs) with 10 major global customers, following similar contracts signed with 10 others previously. These new agreements extend beyond traditional hyperscalers and server manufacturers to include smartphone, automotive electronics, and networking device sectors.
Despite strong semiconductor performance, Samsung's non-memory businesses face challenges. The Device eXperience (DX) division, responsible for consumer electronics and mobile communications, recorded an operating loss of 80 billion won in the third quarter, marking its second consecutive quarterly deficit. Samsung noted that while new products like foldable phones boosted revenue, rising costs for mobile memory eroded margins. The company plans to address cost pressures next year by adjusting its product mix to focus on flagship models and premium TVs.