Samsung Electronics Q3 Operating Profit: 100 Trillion Won

Samsung Electronics’ preliminary operating profit for the third quarter of 2026 is 107.4 trillion won. Its operating margin is calculated at approximately 55.08%. To assess whether the strong results can continue, both memory prices and HBM sales performance need to be checked.

The figures are based on Samsung Electronics’ preliminary earnings announcement on October 8, 2026.

Comparison of Samsung Electronics’ Preliminary Third-Quarter Results

Samsung Electronics’ revenue and operating profit both increased from the previous quarter. Compared with the same period last year, operating profit rose more sharply. Preliminary results are estimates, however, and may change in a later announcement.

The operating margins were calculated using the revenue and operating profit shown in the table. Revenue grew by approximately 100% year over year. Operating profit grew by approximately 782.50% over the same period. The comparison figures can be found in Samsung Electronics’ preliminary third-quarter earnings announcement.

The key figures in the preliminary announcement are consolidated company-wide results. Profit from memory alone and the smartphone business’s profit or loss need to be checked separately. See Samsung Electronics’ IR earnings materials for explanations by business. (Verified figures for Q2 2026: DS revenue of 127.5 trillion won and operating profit of 89.2 trillion won; memory revenue of 120.8 trillion won; DX operating loss of 0.8 trillion won; MX and Network operating loss of 0.7 trillion won · Source: samsung.com · Checked: 2026-07-30)

Calculation Example: Operating Margin and Expectations

The preliminary operating margin for the third quarter of 2026 is approximately 55.08%. The calculation is operating profit of 107.4 trillion won ÷ revenue of 195 trillion won × 100. That is approximately 2.90 percentage points higher than the previous quarter.

When comparing results with market expectations, the aggregation dates need to match. Consensus means the average of securities firms’ earnings forecasts. Figures vary by research provider and the time they were compiled.

On October 7, 2026, Money Today reported figures compiled by FnGuide. The revenue forecast at the time was 200 trillion 6417 hundred million won. The operating profit forecast was 106 trillion 6401 hundred million won. The comparison below is calculated using that consensus report.

By this measure, profitability was higher even though revenue fell short of expectations. That does not remove the need to identify why revenue fell short. Sales volume and selling prices need to be examined separately to judge whether the results can continue.

How Do Exchange Rates and Memory Affect Earnings?

A decline in the won-dollar exchange rate can reduce the won value of dollar-denominated revenue. The same amount received in dollars translates into a smaller amount in won. The currencies used to pay costs also affect actual profit and loss, however.

The October 7, 2026, report also identified a stronger won as a factor affecting earnings. This was an analysis presented by securities firms. The preliminary results alone cannot establish the exchange rate’s effect on profit and loss. The estimates can be found in the earnings forecast report.

Rising memory prices affect revenue through selling prices. HBM is high-bandwidth memory that transfers large amounts of data quickly. Growth in HBM4 sales is something to examine when assessing how the product mix affects profitability.

In its second-quarter announcement, Samsung Electronics cited rising memory prices as a reason for improved results. It also reported increased HBM4 sales in the same announcement. That explanation cannot simply be treated as the amount HBM4 contributed in the third quarter. The details appear in the second-quarter 2026 earnings announcement.

Conditions to Check: Identifying a Memory Market Peak

A slowdown in the rate of memory price increases alone does not establish that the market is in a downturn. A market peak means conditions have passed their high point and are weakening. The direction of prices must be distinguished from the pace at which they rise.

Spot prices are prices for short-term transactions in the market. Contract prices are set through negotiations between suppliers and customers. Changes in the spot market are not immediately reflected in every contract.

Price data from early October 2026 also presents different pictures depending on the observation period. The summary of TrendForce’s October 7 report describes a flat spot market. By contrast, its October 8 price list shows increases for some DRAM products. These can be checked in the weekly report summary and the DRAM price list, respectively.

A single day’s increase does not establish a monthly trend. Spot and contract prices from different months should not be compared directly, either. First check that the price lists’ update dates and product specifications match.

Why Long-Term Supply Contracts Change Price Signals

As long-term supply contracts become more common, spot prices alone become less useful for explaining company earnings. That is because some sales volumes are governed by separate contract terms. A long contract period does not mean prices are fixed for the same period.

On October 7, 2026, TrendForce described long-term server DRAM contracts. A method that sets a price range applies to some volumes. It analyzed the remaining volumes as continuing to be subject to quarterly price negotiations. This is based on the public summary of the DRAM Market Bulletin.

Under this structure, the details of the contracts are needed to interpret earnings. Securing sales volumes and guaranteeing selling prices are different things. It should not be assumed that the same terms apply to Samsung Electronics.

• The scope of the volumes secured by the contract
• How often prices are renegotiated
• Whether there is a price ceiling or floor
• Whether customers can adjust their orders

The Difference Between Memory Profit and Company-Wide Profit

Profit from the memory business can exceed company-wide operating profit. Losses in other businesses can reduce profit when the results are combined. Consolidation adjustments also need to be checked, so care is needed when calculating a figure by simple subtraction.

An October 7, 2026, report includes an estimate of memory profit. Securities firms projected third-quarter operating profit of around 110 trillion won. This should not be interpreted as business-level results announced by the company. The estimate comes from the memory business earnings forecast report.

The profit margin forecast in the 80% range in the same report concerns the DRAM business. Applying it to the entire memory business changes the scope. The overall memory business, DRAM, and DS, the semiconductor division, must be distinguished.

Items to Check on the October 29 Earnings Call

The third-quarter earnings announcement is scheduled for 10 a.m. on October 29, 2026 (South Korea). The time is Korea Standard Time, UTC+9. Samsung Electronics’ electronic notice states:

The conference call for the third-quarter 2026 earnings announcement is scheduled for 10 a.m. on October 29, 2026.

The quoted document is Samsung Electronics’ notice about the third-quarter conference call and advance question submissions. The original can be found in Samsung Electronics’ IR electronic notices.

Supply Shortages and Profitability by Business

Whether supply shortages will continue needs to be assessed through demand and capacity expansion plans for each product. Conditions for server memory and mobile memory are not the same. Foundry refers to the contract manufacturing of semiconductors.

In its second-quarter announcement, Samsung Electronics forecast strong demand centered on servers. At the same time, it noted some weakening in mobile and PC demand. How these differences affected third-quarter profit by business is something to check. The forecast was included in Samsung Electronics’ second-quarter earnings announcement.

Whether the HBM4 Target Was Met

The key question for HBM4 is whether the revenue growth forecast translated into actual results. Coverage of the July 30 conference call included a forecast of at least three times the previous quarter’s level. The forecast applies to the third quarter of 2026.

The projected HBM4 share for the second half uses Samsung Electronics’ total HBM revenue as its denominator. It does not mean 60% of Samsung Electronics’ company-wide revenue. The forecast can be found in NewsPim’s report on the second-quarter conference call.

For HBM4E, sample shipments and the mass-production schedule need to be considered separately. Samsung Electronics reported HBM4E sample shipments in its second-quarter announcement. Sample shipments alone do not establish when substantial revenue will begin.

Details of the Shareholder Return Plan

For shareholder returns, check how the previously announced plan is being carried out. Samsung Electronics announced a plan approved by its board on August 21, 2026. The expected range for 2026 shareholder returns is 90 trillion to 110 trillion won. The source is Samsung Electronics’ shareholder return announcement.

The entire range should not be interpreted as cash dividends. Dividends per share and payment dates need to be checked in the individual dividend disclosures. An increase in operating profit alone cannot be used to calculate a dividend increase of the same size.

• Whether the scale of shareholder returns has changed from the previous announcement
• The distinction between cash dividends and share buyback plans
• The dividend record date and dividend per share
• Cash available after capital expenditure

Common Mistake: Turning Strong Results into a Stock Price Forecast

Strong current results alone do not establish that the stock price will rise. Earnings describe performance in a quarter that has already ended. Stock prices are also affected by changes in expectations for future profits.

A percentage decline in the stock price is meaningful only with a basis for comparison. Common and preferred shares need to be distinguished. Check whether the price used is an intraday high or a closing price.