Samsung Electronics Co., Ltd.

Samsung said second-quarter revenue reached KRW 171.5 trillion, up 28% quarter-on-quarter, while operating profit rose 56% to KRW 89.5 trillion and operating margin improved to 52% from 43% in the prior quarter. Net profit increased 52% to KRW 71.6 trillion, and EPS for common and preferred shares rose 52% to KRW 10,849. R&D expense reached a quarterly high of KRW 16 trillion, and CapEx was KRW 16.8 trillion in the quarter, up KRW 5.5 trillion sequentially. By segment, MX revenue was KRW 32.3 trillion and combined MX/Network operating profit was a loss of KRW 0.7 trillion. For the second half, Samsung expects growth momentum to continue on semiconductor demand, but DS faces macro uncertainty and rising component/material costs, while DX aims to defend profitability through higher-value products and cost optimization. Memory expects Q3 bit growth of mid-single digits for DRAM and high single digits for NAND; Foundry expects double-digit or higher year-on-year revenue growth in the second half; Display aims to maintain profitability with high-value-added products and Gen 8.6 IT OLED ramp; MX expects annual smartphone shipments to decline, while full-year sales volume and ASP should increase.

CFO Soon-Cheol Park said Samsung is building on AI leadership and record results to strengthen future growth engines through technology innovation and selective capital allocation. He emphasized agentic AI, premium products, and a more stable business structure through multiyear supply agreements in memory, while also highlighting new growth areas such as robotics, automotive electronics, medical technology, and AI-enabled experiences. His tone was confident but cautious, repeatedly noting macro, geopolitical, and cost pressures.

Park highlighted strong financial performance, including KRW 171.5 trillion revenue, KRW 89.5 trillion operating profit, KRW 71.6 trillion net profit, and KRW 10,849 EPS, plus a record KRW 16 trillion in R&D and KRW 16.8 trillion in CapEx. He said the stronger U.S. dollar added about KRW 3.1 trillion to operating profit quarter-on-quarter, mainly in components, and noted that DX profitability was hurt by rising component costs. On shareholder returns, he confirmed a second-quarter dividend of KRW 374 per share and reiterated the 2024-2026 policy of KRW 9.8 trillion in annual regular dividends paid quarterly, while saying the board is discussing this year’s special dividend and the next policy. He also said bonus accrual for the first half was recognized at about 10.5% of cumulative first-half operating profit, and that buybacks/employee-compensation treasury share use will be handled within legal and board-approval frameworks.

Analysts focused on the memory supply shortage, HBM mix, multiyear contracts, shareholder returns, Foundry utilization, and the possibility of a U.S. ADR listing. Management said memory constraints are likely to persist through 2028, with supply growth taking time because new fabs take more than three years to reach wafer production, and said HBM4 sales should rise by more than 3x quarter-on-quarter in Q3, with HBM4 expected to make up well over 60% of HBM revenue mix in the second half. On shareholder returns, Samsung said it remains committed to the current policy, is discussing this year’s special dividend and the next policy, and has already received about one-quarter of advanced payments tied to multiyear memory contracts. The company also said it is not currently reviewing an ADR issuance, though it sees it as one possible option for long-term shareholder value.