Samsung Electronics has released its financial results for the first quarter ending March 31, 2026. The company achieved a record-breaking quarterly consolidated revenue of KRW 133.9 trillion, marking a 43% increase from the previous quarter. Operating profit also reached an all-time high at KRW 57.2 trillion.
The Device Solutions (DS) Division reported an 86% increase in sales from the previous quarter, with the Memory Business achieving its highest-ever quarterly revenue and operating profit. This success was attributed to Samsung’s technological leadership in the memory market and higher average selling prices.
The Device eXperience (DX) Division experienced a 19% rise in sales, supported by the launch of new flagship smartphones. Despite increased cost pressures, the division expanded sales of high-value products across its businesses to maintain profitability.
Semiconductors to drive growth on AI demand
In the first quarter, the DS Division posted KRW 81.7 trillion in consolidated revenue and KRW 53.7 trillion in operating profit. The Memory Business achieved record sales by meeting high-value AI demand, despite supply limitations, and benefited from industry-wide increases in memory prices.
Samsung led the memory market by leveraging its technology leadership, including the first mass sales of HBM4 and SOCAMM2 for NVIDIA’s Vera Rubin platform and the development of PCIe Gen6 SSDs. The Memory Business expects strong demand to continue, driven by AI infrastructure expansion, and plans to deliver HBM4E samples to solidify its technical leadership.
Looking forward to the second half of 2026, the Memory Business anticipates strong server memory demand as hyperscalers accommodate AI and LLM services. It aims to expand its share in the AI memory market with products like DDR5 and SOCAMM2, and lead the PCIe Gen6 eSSD market.
The System LSI Business improved earnings through expanded SoC sales and plans to increase sales for volume-tier smartphones in Q2 2026. It also aims to secure flagship SoC design wins and expand its 200MP sensor lineup in the second half of the year.
The Foundry Business faced earnings declines due to seasonal factors but maintained design wins in HPCs and advanced its silicon photonics business. It plans to fully utilize advanced-node production lines in Q2 2026 and start production of the second-generation 2nm process in the latter half of the year.
SDC focuses on premium products and technologies
Samsung Display Corporation (SDC) reported KRW 6.7 trillion in consolidated revenue and KRW 0.4 trillion in operating profit for the first quarter. Despite a decline in earnings for small and medium displays, the large display business maintained stable sales due to strong demand for OLED gaming monitors.
In Q2 2026, SDC plans to focus on high-end sales for small and medium displays and capture demand for large displays with new product launches. For the second half of the year, SDC aims to boost revenues with premium products and 8.6G IT OLED mass production, while strengthening its position in the premium TV market.
MX and Networks aim for revenue growth
The MX and Networks Businesses reported KRW 38.1 trillion in consolidated revenue and KRW 2.8 trillion in operating profit for the first quarter. The MX Business saw growth through its premium product mix and cost optimization strategies.
In Q2 2026, the MX Business expects a revenue decline due to diminishing launch effects but aims for year-on-year growth through flagship sales and new A-series devices. In the latter half of the year, it plans to focus on flagship sales, foldable product development, and efficiency initiatives.
The Networks Business faced earnings declines due to investment challenges but plans to improve Q2 2026 earnings through overseas sales. In H2 2026, it aims to capture new markets with its leadership in vRAN, ORAN, and AI-RAN technologies.
CE Business and Harman advance product lineups
The Visual Display (VD) and Digital Appliances (DA) Businesses posted KRW 14.3 trillion in consolidated revenue and KRW 0.2 trillion in operating profit. The VD Business improved profitability with strong sales of premium and large TVs and plans to capture sporting-event-driven demand in Q2 2026.
In the second half, the VD Business aims to maintain TV sales leadership with AI features and expand its service and OS business. The DA Business, facing cost pressures, plans to grow revenue with a new premium lineup and air conditioner demand recovery in Q2 2026.
Harman experienced an earnings decline due to higher expenses and memory constraints. It expects earnings growth in Q2 2026 from increased auto supply and plans to sustain momentum with premium audio sales in the second half of the year.
