{"content_id":"codwfmx9q7","slug":"samsung-electronics-100-trillion-operating-profit-q3-analysis","locale":"en","schema_type":"Article","category":"report","category_name":"Report","title":"Samsung Electronics Q3 Operating Profit: 100 Trillion Won","summary":"Samsung Electronics' preliminary operating profit for the third quarter of 2026 is 107.4 trillion won. Operating margin calculations and criteria for comparing memory prices are used to interpret the results and identify what to check during the earnings call.","sponsorship_disclosure":null,"affiliate_disclosure":null,"commerce_disclosure":null,"author":{"name":"Injoys Editorial Team","url":"https://injoys.com/ko/about"},"key_points":["Samsung Electronics' preliminary revenue for the third quarter of 2026 is 195 trillion won.","Dividing preliminary operating profit of 107.4 trillion won by revenue gives an operating margin of approximately 55.08% for the third quarter of 2026.","To assess memory market conditions, compare spot and contract prices for the same product at the same point in time.","HBM4 revenue growth forecasts should be distinguished from actual results.","The third-quarter 2026 earnings conference call is scheduled for October 29 at 10 a.m. Korea time."],"content_markdown":"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.\n\nThe figures are based on Samsung Electronics’ preliminary earnings announcement on October 8, 2026.\n\n## Comparison of Samsung Electronics’ Preliminary Third-Quarter Results\n\nSamsung 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.\n\n| Item | Q3 2025 | Q2 2026 | Preliminary Q3 2026 |\n| --- | ---: | ---: | ---: |\n| Consolidated revenue | 86.06 trillion won | 171.5 trillion won | 195 trillion won |\n| Consolidated operating profit | 12.17 trillion won | 89.49 trillion won | 107.4 trillion won |\n| Operating margin | Approximately 14.14% | Approximately 52.18% | Approximately 55.08% |\n\nThe 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](https://news.samsung.com/be/samsung-electronics-announces-earnings-guidance-for-third-quarter-2026).\n\nThe 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)\n\n## Calculation Example: Operating Margin and Expectations\n\nThe 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.\n\nWhen 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.\n\nOn 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](https://v.daum.net/v/20261007111313608).\n\n| Comparison item | Expectations reported on October 7 | Preliminary Q3 results | Difference |\n| --- | ---: | ---: | ---: |\n| Revenue | 200 trillion 6417 hundred million won | 195 trillion won | Approximately 2.81% below |\n| Operating profit | 106 trillion 6401 hundred million won | 107.4 trillion won | Approximately 0.71% above |\n| Operating margin | Approximately 53.15% | Approximately 55.08% | Approximately 1.93 percentage points above |\n\nBy 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.\n\n## How Do Exchange Rates and Memory Affect Earnings?\n\nA 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.\n\nThe 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](https://v.daum.net/v/20261007111313608).\n\nRising 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.\n\nIn 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](https://news.samsung.com/global/samsung-electronics-announces-second-quarter-2026-results).\n\n## Conditions to Check: Identifying a Memory Market Peak\n\nA 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.\n\nSpot 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.\n\n| Observed change | Possible interpretation | Conditions to check as well |\n| --- | --- | --- |\n| Spot prices fall | Supply and demand in the short-term market may be weakening | How long prices have fallen and trading conditions for the product |\n| Spot prices are lower than contract prices | The short-term market may be weaker than existing contracts | Whether the prices are for the same specifications and period |\n| Contract prices rise more slowly | The pace of price increases is weakening | Whether prices themselves have fallen |\n| Prices rise while shipments fall | Price and sales volume have opposing effects | Changes in revenue and inventory |\n\nPrice 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](https://www.trendforce.com/research/download/RP261007RZ) and the [DRAM price list](https://www.trendforce.com/price/dram/lpddr_spot), respectively.\n\nA 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.\n\n## Why Long-Term Supply Contracts Change Price Signals\n\nAs 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.\n\nOn 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](https://www.trendforce.com/research/download/RP261007RZ).\n\nUnder 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.\n\n- The scope of the volumes secured by the contract\n- How often prices are renegotiated\n- Whether there is a price ceiling or floor\n- Whether customers can adjust their orders\n\n## The Difference Between Memory Profit and Company-Wide Profit\n\nProfit 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.\n\nAn 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](https://www.mt.co.kr/industry/2026/10/07/2026100712395346206).\n\nThe 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.\n\n| Category | Scope | Common misreading |\n| --- | --- | --- |\n| Company-wide consolidated results | All businesses included in consolidation | Treating them as semiconductor-only results |\n| DS results | Semiconductor businesses, including memory and foundry | Treating them as identical to memory results |\n| Memory results | Memory businesses, including DRAM and NAND | Applying a DRAM-only profit margin |\n| DRAM results | The DRAM business, including HBM | Extending them to overall memory profitability |\n\n## Items to Check on the October 29 Earnings Call\n\nThe 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:\n\n\u003e The conference call for the third-quarter 2026 earnings announcement is scheduled for 10 a.m. on October 29, 2026.\n\nThe 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](https://www.samsung.com/sec/ir/reports-disclosures/notices/).\n\n### Supply Shortages and Profitability by Business\n\nWhether 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.\n\nIn 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](https://news.samsung.com/global/samsung-electronics-announces-second-quarter-2026-results).\n\n### Whether the HBM4 Target Was Met\n\nThe 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.\n\nThe 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](https://www.newspim.com/news/view/20260730000725).\n\nFor 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.\n\n### Details of the Shareholder Return Plan\n\nFor 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](https://news.samsung.com/global/samsung-electronics-to-implement-largest-ever-shareholder-return-in-2026-estimated-at-krw-90-to-110-trillion).\n\nThe 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.\n\n- Whether the scale of shareholder returns has changed from the previous announcement\n- The distinction between cash dividends and share buyback plans\n- The dividend record date and dividend per share\n- Cash available after capital expenditure\n\n## Common Mistake: Turning Strong Results into a Stock Price Forecast\n\nStrong 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.\n\nA 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.\n\n| Claim | What needs to be checked |\n| --- | --- |\n| Profit rose, so the stock price will rise too | Future profit forecasts and the expectations already reflected in the current stock price |\n| The price fell sharply from its high | The share class, date of the high, comparison date, and price basis |\n| Slower contract price increases mean a downturn | Prices themselves and accompanying changes in shipment volumes and inventory |\n| The increase in operating profit is available for dividends | Actual cash flow, investment spending, and board decisions |","content_html":"\u003cp\u003eSamsung Electronics’ preliminary operating profit for the third quarter of 2026 is \u003cstrong\u003e107.4 trillion won\u003c/strong\u003e. 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.\u003c/p\u003e\n\u003cp\u003eThe figures are based on Samsung Electronics’ preliminary earnings announcement on October 8, 2026.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#comparison-of-samsung-electronics-preliminary-third-quarter-results\" class=\"anchor\" id=\"comparison-of-samsung-electronics-preliminary-third-quarter-results\"\u003e\u003c/a\u003eComparison of Samsung Electronics’ Preliminary Third-Quarter Results\u003c/h2\u003e\n\u003cp\u003eSamsung 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.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eItem\u003c/th\u003e\n\u003cth\u003eQ3 2025\u003c/th\u003e\n\u003cth\u003eQ2 2026\u003c/th\u003e\n\u003cth\u003ePreliminary Q3 2026\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item\"\u003eConsolidated revenue\u003c/td\u003e\n\u003ctd data-label=\"Q3 2025\"\u003e86.06 trillion won\u003c/td\u003e\n\u003ctd data-label=\"Q2 2026\"\u003e171.5 trillion won\u003c/td\u003e\n\u003ctd data-label=\"Preliminary Q3 2026\"\u003e195 trillion won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item\"\u003eConsolidated operating profit\u003c/td\u003e\n\u003ctd data-label=\"Q3 2025\"\u003e12.17 trillion won\u003c/td\u003e\n\u003ctd data-label=\"Q2 2026\"\u003e89.49 trillion won\u003c/td\u003e\n\u003ctd data-label=\"Preliminary Q3 2026\"\u003e107.4 trillion won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item\"\u003eOperating margin\u003c/td\u003e\n\u003ctd data-label=\"Q3 2025\"\u003eApproximately 14.14%\u003c/td\u003e\n\u003ctd data-label=\"Q2 2026\"\u003eApproximately 52.18%\u003c/td\u003e\n\u003ctd data-label=\"Preliminary Q3 2026\"\u003eApproximately 55.08%\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eThe 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 \u003ca href=\"https://news.samsung.com/be/samsung-electronics-announces-earnings-guidance-for-third-quarter-2026\"\u003eSamsung Electronics’ preliminary third-quarter earnings announcement\u003c/a\u003e.\u003c/p\u003e\n\u003cp\u003eThe 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)\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#calculation-example-operating-margin-and-expectations\" class=\"anchor\" id=\"calculation-example-operating-margin-and-expectations\"\u003e\u003c/a\u003eCalculation Example: Operating Margin and Expectations\u003c/h2\u003e\n\u003cp\u003eThe preliminary operating margin for the third quarter of 2026 is \u003cstrong\u003eapproximately 55.08%\u003c/strong\u003e. 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.\u003c/p\u003e\n\u003cp\u003eWhen 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.\u003c/p\u003e\n\u003cp\u003eOn 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 \u003ca href=\"https://v.daum.net/v/20261007111313608\"\u003econsensus report\u003c/a\u003e.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eComparison item\u003c/th\u003e\n\u003cth\u003eExpectations reported on October 7\u003c/th\u003e\n\u003cth\u003ePreliminary Q3 results\u003c/th\u003e\n\u003cth\u003eDifference\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison item\"\u003eRevenue\u003c/td\u003e\n\u003ctd data-label=\"Expectations reported on October 7\"\u003e200 trillion 6417 hundred million won\u003c/td\u003e\n\u003ctd data-label=\"Preliminary Q3 results\"\u003e195 trillion won\u003c/td\u003e\n\u003ctd data-label=\"Difference\"\u003eApproximately 2.81% below\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison item\"\u003eOperating profit\u003c/td\u003e\n\u003ctd data-label=\"Expectations reported on October 7\"\u003e106 trillion 6401 hundred million won\u003c/td\u003e\n\u003ctd data-label=\"Preliminary Q3 results\"\u003e107.4 trillion won\u003c/td\u003e\n\u003ctd data-label=\"Difference\"\u003eApproximately 0.71% above\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison item\"\u003eOperating margin\u003c/td\u003e\n\u003ctd data-label=\"Expectations reported on October 7\"\u003eApproximately 53.15%\u003c/td\u003e\n\u003ctd data-label=\"Preliminary Q3 results\"\u003eApproximately 55.08%\u003c/td\u003e\n\u003ctd data-label=\"Difference\"\u003eApproximately 1.93 percentage points above\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eBy 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.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#how-do-exchange-rates-and-memory-affect-earnings\" class=\"anchor\" id=\"how-do-exchange-rates-and-memory-affect-earnings\"\u003e\u003c/a\u003eHow Do Exchange Rates and Memory Affect Earnings?\u003c/h2\u003e\n\u003cp\u003eA 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.\u003c/p\u003e\n\u003cp\u003eThe 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 \u003ca href=\"https://v.daum.net/v/20261007111313608\"\u003eearnings forecast report\u003c/a\u003e.\u003c/p\u003e\n\u003cp\u003eRising 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.\u003c/p\u003e\n\u003cp\u003eIn 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 \u003ca href=\"https://news.samsung.com/global/samsung-electronics-announces-second-quarter-2026-results\"\u003esecond-quarter 2026 earnings announcement\u003c/a\u003e.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#conditions-to-check-identifying-a-memory-market-peak\" class=\"anchor\" id=\"conditions-to-check-identifying-a-memory-market-peak\"\u003e\u003c/a\u003eConditions to Check: Identifying a Memory Market Peak\u003c/h2\u003e\n\u003cp\u003eA 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.\u003c/p\u003e\n\u003cp\u003eSpot 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.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eObserved change\u003c/th\u003e\n\u003cth\u003ePossible interpretation\u003c/th\u003e\n\u003cth\u003eConditions to check as well\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Observed change\"\u003eSpot prices fall\u003c/td\u003e\n\u003ctd data-label=\"Possible interpretation\"\u003eSupply and demand in the short-term market may be weakening\u003c/td\u003e\n\u003ctd data-label=\"Conditions to check as well\"\u003eHow long prices have fallen and trading conditions for the product\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Observed change\"\u003eSpot prices are lower than contract prices\u003c/td\u003e\n\u003ctd data-label=\"Possible interpretation\"\u003eThe short-term market may be weaker than existing contracts\u003c/td\u003e\n\u003ctd data-label=\"Conditions to check as well\"\u003eWhether the prices are for the same specifications and period\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Observed change\"\u003eContract prices rise more slowly\u003c/td\u003e\n\u003ctd data-label=\"Possible interpretation\"\u003eThe pace of price increases is weakening\u003c/td\u003e\n\u003ctd data-label=\"Conditions to check as well\"\u003eWhether prices themselves have fallen\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Observed change\"\u003ePrices rise while shipments fall\u003c/td\u003e\n\u003ctd data-label=\"Possible interpretation\"\u003ePrice and sales volume have opposing effects\u003c/td\u003e\n\u003ctd data-label=\"Conditions to check as well\"\u003eChanges in revenue and inventory\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003ePrice 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 \u003ca href=\"https://www.trendforce.com/research/download/RP261007RZ\"\u003eweekly report summary\u003c/a\u003e and the \u003ca href=\"https://www.trendforce.com/price/dram/lpddr_spot\"\u003eDRAM price list\u003c/a\u003e, respectively.\u003c/p\u003e\n\u003cp\u003eA 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.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#why-long-term-supply-contracts-change-price-signals\" class=\"anchor\" id=\"why-long-term-supply-contracts-change-price-signals\"\u003e\u003c/a\u003eWhy Long-Term Supply Contracts Change Price Signals\u003c/h2\u003e\n\u003cp\u003eAs 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.\u003c/p\u003e\n\u003cp\u003eOn 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 \u003ca href=\"https://www.trendforce.com/research/download/RP261007RZ\"\u003eDRAM Market Bulletin\u003c/a\u003e.\u003c/p\u003e\n\u003cp\u003eUnder 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.\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eThe scope of the volumes secured by the contract\u003c/li\u003e\n\u003cli\u003eHow often prices are renegotiated\u003c/li\u003e\n\u003cli\u003eWhether there is a price ceiling or floor\u003c/li\u003e\n\u003cli\u003eWhether customers can adjust their orders\u003c/li\u003e\n\u003c/ul\u003e\n\u003ch2\u003e\n\u003ca href=\"#the-difference-between-memory-profit-and-company-wide-profit\" class=\"anchor\" id=\"the-difference-between-memory-profit-and-company-wide-profit\"\u003e\u003c/a\u003eThe Difference Between Memory Profit and Company-Wide Profit\u003c/h2\u003e\n\u003cp\u003eProfit 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.\u003c/p\u003e\n\u003cp\u003eAn 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 \u003ca href=\"https://www.mt.co.kr/industry/2026/10/07/2026100712395346206\"\u003ememory business earnings forecast report\u003c/a\u003e.\u003c/p\u003e\n\u003cp\u003eThe 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.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eCategory\u003c/th\u003e\n\u003cth\u003eScope\u003c/th\u003e\n\u003cth\u003eCommon misreading\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eCompany-wide consolidated results\u003c/td\u003e\n\u003ctd data-label=\"Scope\"\u003eAll businesses included in consolidation\u003c/td\u003e\n\u003ctd data-label=\"Common misreading\"\u003eTreating them as semiconductor-only results\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eDS results\u003c/td\u003e\n\u003ctd data-label=\"Scope\"\u003eSemiconductor businesses, including memory and foundry\u003c/td\u003e\n\u003ctd data-label=\"Common misreading\"\u003eTreating them as identical to memory results\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eMemory results\u003c/td\u003e\n\u003ctd data-label=\"Scope\"\u003eMemory businesses, including DRAM and NAND\u003c/td\u003e\n\u003ctd data-label=\"Common misreading\"\u003eApplying a DRAM-only profit margin\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eDRAM results\u003c/td\u003e\n\u003ctd data-label=\"Scope\"\u003eThe DRAM business, including HBM\u003c/td\u003e\n\u003ctd data-label=\"Common misreading\"\u003eExtending them to overall memory profitability\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003ch2\u003e\n\u003ca href=\"#items-to-check-on-the-october-29-earnings-call\" class=\"anchor\" id=\"items-to-check-on-the-october-29-earnings-call\"\u003e\u003c/a\u003eItems to Check on the October 29 Earnings Call\u003c/h2\u003e\n\u003cp\u003eThe third-quarter earnings announcement is scheduled for \u003cstrong\u003e10 a.m. on October 29, 2026 (South Korea)\u003c/strong\u003e. The time is Korea Standard Time, UTC+9. Samsung Electronics’ electronic notice states:\u003c/p\u003e\n\u003cblockquote\u003e\n\u003cp\u003eThe conference call for the third-quarter 2026 earnings announcement is scheduled for 10 a.m. on October 29, 2026.\u003c/p\u003e\n\u003c/blockquote\u003e\n\u003cp\u003eThe quoted document is Samsung Electronics’ notice about the third-quarter conference call and advance question submissions. The original can be found in \u003ca href=\"https://www.samsung.com/sec/ir/reports-disclosures/notices/\"\u003eSamsung Electronics’ IR electronic notices\u003c/a\u003e.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#supply-shortages-and-profitability-by-business\" class=\"anchor\" id=\"supply-shortages-and-profitability-by-business\"\u003e\u003c/a\u003eSupply Shortages and Profitability by Business\u003c/h3\u003e\n\u003cp\u003eWhether 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.\u003c/p\u003e\n\u003cp\u003eIn 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 \u003ca href=\"https://news.samsung.com/global/samsung-electronics-announces-second-quarter-2026-results\"\u003eSamsung Electronics’ second-quarter earnings announcement\u003c/a\u003e.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#whether-the-hbm4-target-was-met\" class=\"anchor\" id=\"whether-the-hbm4-target-was-met\"\u003e\u003c/a\u003eWhether the HBM4 Target Was Met\u003c/h3\u003e\n\u003cp\u003eThe 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.\u003c/p\u003e\n\u003cp\u003eThe 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 \u003ca href=\"https://www.newspim.com/news/view/20260730000725\"\u003eNewsPim’s report on the second-quarter conference call\u003c/a\u003e.\u003c/p\u003e\n\u003cp\u003eFor 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.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#details-of-the-shareholder-return-plan\" class=\"anchor\" id=\"details-of-the-shareholder-return-plan\"\u003e\u003c/a\u003eDetails of the Shareholder Return Plan\u003c/h3\u003e\n\u003cp\u003eFor 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 \u003ca href=\"https://news.samsung.com/global/samsung-electronics-to-implement-largest-ever-shareholder-return-in-2026-estimated-at-krw-90-to-110-trillion\"\u003eSamsung Electronics’ shareholder return announcement\u003c/a\u003e.\u003c/p\u003e\n\u003cp\u003eThe 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.\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eWhether the scale of shareholder returns has changed from the previous announcement\u003c/li\u003e\n\u003cli\u003eThe distinction between cash dividends and share buyback plans\u003c/li\u003e\n\u003cli\u003eThe dividend record date and dividend per share\u003c/li\u003e\n\u003cli\u003eCash available after capital expenditure\u003c/li\u003e\n\u003c/ul\u003e\n\u003ch2\u003e\n\u003ca href=\"#common-mistake-turning-strong-results-into-a-stock-price-forecast\" class=\"anchor\" id=\"common-mistake-turning-strong-results-into-a-stock-price-forecast\"\u003e\u003c/a\u003eCommon Mistake: Turning Strong Results into a Stock Price Forecast\u003c/h2\u003e\n\u003cp\u003eStrong 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.\u003c/p\u003e\n\u003cp\u003eA 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.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eClaim\u003c/th\u003e\n\u003cth\u003eWhat needs to be checked\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Claim\"\u003eProfit rose, so the stock price will rise too\u003c/td\u003e\n\u003ctd data-label=\"What needs to be checked\"\u003eFuture profit forecasts and the expectations already reflected in the current stock price\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Claim\"\u003eThe price fell sharply from its high\u003c/td\u003e\n\u003ctd data-label=\"What needs to be checked\"\u003eThe share class, date of the high, comparison date, and price basis\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Claim\"\u003eSlower contract price increases mean a downturn\u003c/td\u003e\n\u003ctd data-label=\"What needs to be checked\"\u003ePrices themselves and accompanying changes in shipment volumes and inventory\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Claim\"\u003eThe increase in operating profit is available for dividends\u003c/td\u003e\n\u003ctd data-label=\"What needs to be checked\"\u003eActual cash flow, investment spending, and board decisions\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n","tags":["Semiconductors","Investment","Samsung Electronics","HBM","Exchange rate"],"faqs":[{"question":"What was Samsung Electronics' operating profit in the third quarter of 2026?","answer":"The provisional operating profit announced on October 8, 2026, was 107.4 trillion won. This is a consolidated figure and may change when the final results are announced."},{"question":"How is the 55.08% operating profit margin calculated?","answer":"Divide the provisional operating profit of 107.4 trillion won for the third quarter of 2026 by revenue of 195 trillion won. Multiply the result by 100 to get approximately 55.08%."},{"question":"If revenue is lower than expected, does that mean the results are poor?","answer":"Revenue alone cannot tell you how the company performed overall. You also need to check sales volume, prices, and changes in costs. Operating profit in these provisional results exceeded market expectations reported on October 7."},{"question":"Why does a decline in the won-dollar exchange rate affect revenue?","answer":"Because revenue received in dollars may be worth less when converted into won. The actual effect on profit or loss depends on factors such as the currencies used to pay costs."},{"question":"Is the 110 trillion won in memory operating profit an official result?","answer":"It is an estimate by securities firms reported on October 7, 2026. It cannot be treated as Samsung Electronics' final third-quarter result for its memory business."},{"question":"Can memory business profit exceed company-wide profit?","answer":"It can if other businesses incur losses. When comparing actual figures, you also need to check the scope of each business and any consolidation adjustments."},{"question":"Does a slowdown in the rate of increase in contract prices mean prices are falling?","answer":"Prices can continue to rise even if the rate of increase slows. A price decline is different from slower price growth."},{"question":"How should spot prices and contract prices be compared?","answer":"You need to compare the same product specifications and units at the same point in time. Do not conclude that prices have reversed based solely on price lists updated on different dates."},{"question":"Is the 60% share of HBM4 revenue based on company-wide revenue?","answer":"The share reported as a forecast for the second half of 2026 is based on Samsung Electronics' total HBM revenue. It is not a share of Samsung Electronics' company-wide revenue."},{"question":"When is the third-quarter 2026 earnings call?","answer":"It is scheduled for October 29, 2026, at 10 a.m. Korea time. You can check the schedule and listening instructions in Samsung Electronics' IR electronic notice."},{"question":"Is the 90 trillion to 110 trillion won in shareholder returns for 2026 all dividends?","answer":"This is the expected range of shareholder returns announced on August 21, 2026. The entire amount should not be interpreted as cash dividends. Check the separate dividend disclosure for the dividend per share and payment date."}],"sources":[{"url":"https://www.samsung.com/global/ir/reports-disclosures/public-disclosure-view.84775/","title":"Samsung Electronics IR, 3Q 2026 Pre-Earnings Guidance, October 8, 2026","type":"source"},{"url":"https://news.samsung.com/be/samsung-electronics-announces-earnings-guidance-for-third-quarter-2026","title":"Samsung Electronics Newsroom, preliminary results for Q3 2026 and comparative results","type":"data_point"},{"url":"https://v.daum.net/v/20261007111313608","title":"Money Today, Samsung Electronics earnings consensus and exchange rate analysis, October 7, 2026","type":"data_point"},{"url":"https://news.samsung.com/global/samsung-electronics-announces-second-quarter-2026-results","title":"Samsung Electronics Newsroom, Q2 2026 earnings announcement, July 30, 2026","type":"source"},{"url":"https://www.trendforce.com/research/download/RP261007RZ","title":"TrendForce, DRAM Market Bulletin, public summary released October 7, 2026","type":"source"},{"url":"https://www.trendforce.com/price/dram/lpddr_spot","title":"TrendForce, DRAM price list and update dates for each item","type":"data_point"},{"url":"https://www.mt.co.kr/industry/2026/10/07/2026100712395346206","title":"Money Today, outlook for Samsung Electronics' Q3 memory business results, October 7, 2026","type":"source"},{"url":"https://www.samsung.com/sec/ir/reports-disclosures/notices/","title":"Samsung Electronics IR electronic notice, Q3 2026 conference call and advance question submission information","type":"source"},{"url":"https://www.newspim.com/news/view/20260730000725","title":"NewsPim, HBM4 sales outlook from Samsung Electronics' Q2 conference call, July 30, 2026","type":"source"},{"url":"https://news.samsung.com/global/samsung-electronics-to-implement-largest-ever-shareholder-return-in-2026-estimated-at-krw-90-to-110-trillion","title":"Samsung Electronics Newsroom, announcement of 2026 shareholder return plan, August 21, 2026","type":"source"},{"url":"https://www.samsung.com/global/ir/financial-information/earnings-release/","title":"Samsung Electronics IR, quarterly earnings presentation materials","type":"source"}],"images":[{"id":1715,"url":"https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MjYxNzUsInB1ciI6ImJsb2JfaWQifX0=--afac0d8f9c196e1bb98b78c4e3cda3de8557b804/ai-3ed3c990.webp","is_representative":true,"generation_method":"ai_photo","license":"ai_generated","mime_type":"image/webp","width":1536,"height":1024,"translations":{"ko":{"alt":"반도체 시설에서 장갑을 낀 기술자가 실리콘 웨이퍼 옆의 적층 메모리 칩을 살펴본다.","caption":"HBM4 매출 성장 전망은 실제 달성 실적과 구분해야 합니다.","description":null},"en":{"alt":"A gloved technician examines stacked memory chips beside a silicon wafer in a semiconductor facility.","caption":"Projected HBM4 sales growth must be distinguished from actual results.","description":null},"ja":{"alt":"半導体施設で、手袋を着けた技術者がシリコンウエハーの横に並ぶ積層メモリーチップを調べている。","caption":"HBM4の売上成長見通しと実際の実績は区別する必要があります。","description":null},"es":{"alt":"Un técnico con guantes examina chips de memoria apilados junto a una oblea de silicio en una planta de semiconductores.","caption":"Las previsiones de crecimiento de las ventas de HBM4 deben distinguirse de los resultados reales.","description":null},"id":{"alt":"Teknisi bersarung tangan memeriksa cip memori bertumpuk di samping wafer silikon di fasilitas semikonduktor.","caption":"Proyeksi pertumbuhan penjualan HBM4 harus dibedakan dari hasil yang benar-benar tercapai.","description":null},"pt":{"alt":"Um técnico de luvas examina chips de memória empilhados ao lado de uma pastilha de silício numa instalação de semicondutores.","caption":"As projeções de crescimento das vendas de HBM4 devem ser distinguidas dos resultados efetivos.","description":null},"zh-hant":{"alt":"半導體廠內，戴著手套的技術人員查看矽晶圓旁的堆疊記憶體晶片。","caption":"HBM4營收成長預測應與實際達成的業績區分。","description":null},"de":{"alt":"Ein Techniker mit Handschuhen prüft gestapelte Speicherchips neben einem Siliziumwafer in einer Halbleiteranlage.","caption":"Prognosen zum Umsatzwachstum mit HBM4 sind von tatsächlich erzielten Ergebnissen zu unterscheiden.","description":null}}},{"id":1716,"url":"https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MjYxODEsInB1ciI6ImJsb2JfaWQifX0=--dc9ed479ed38371552a02692246efb468dcdd76d/ai-9978aa55.webp","is_representative":false,"generation_method":"ai_semi","license":"ai_generated","mime_type":"image/webp","width":1536,"height":1024,"translations":{"ko":{"alt":"데이터센터에서 기술자가 열린 서버의 프로세서와 주변 메모리 칩을 살펴본다.","caption":"메모리 업황은 동일한 품목과 시점의 현물가격과 계약가격을 비교해 판단해야 합니다.","description":null},"en":{"alt":"A technician examines a processor and surrounding memory chips in an open server at a data center.","caption":"Assess memory market conditions by comparing spot and contract prices for the same product at the same time.","description":null},"ja":{"alt":"データセンターで技術者が開いたサーバーのプロセッサーと周囲のメモリチップを調べている。","caption":"メモリ市況は、同じ品目・時点の現物価格と契約価格を比較して判断する必要があります。","description":null},"es":{"alt":"Una técnica examina el procesador y los chips de memoria de un servidor abierto en un centro de datos.","caption":"El mercado de memorias debe evaluarse comparando precios al contado y de contrato del mismo producto en el mismo momento.","description":null},"id":{"alt":"Seorang teknisi memeriksa prosesor dan cip memori di sekitarnya pada server terbuka di pusat data.","caption":"Kondisi pasar memori perlu dinilai dengan membandingkan harga spot dan kontrak untuk produk dan waktu yang sama.","description":null},"pt":{"alt":"Uma técnica examina o processador e os chips de memória ao redor em um servidor aberto num centro de dados.","caption":"O mercado de memórias deve ser avaliado comparando preços à vista e contratuais do mesmo produto no mesmo período.","description":null},"zh-hant":{"alt":"技術人員在資料中心檢視打開的伺服器內的處理器與周圍的記憶體晶片。","caption":"判斷記憶體市場行情時，應比較相同品項、相同時間的現貨價格與合約價格。","description":null},"de":{"alt":"Eine Technikerin prüft den Prozessor und die umliegenden Speicherchips in einem offenen Server im Rechenzentrum.","caption":"Die Lage am Speichermarkt sollte anhand von Spot- und Vertragspreisen für dasselbe Produkt zum selben Zeitpunkt beurteilt werden.","description":null}}}],"published_at":"2026-10-09T13:07:23+09:00","updated_at":"2026-10-09T13:07:23+09:00","license":"cc_by","translation_status":"reviewed","available_locales":["ko","en","ja","es"],"data_locales":["ko","en","ja","es","id","pt","zh-hant","de"],"url":"https://injoys.com/en/articles/samsung-electronics-100-trillion-operating-profit-q3-analysis"}