Samsung Electronics expects a massive operating profit of nearly $80 billion for the third quarter of 2026, driven by high demand for AI-focused memory chips. However, the company faces significant financial hurdles in its mobile and chip manufacturing divisions, which are struggling with losses and rising costs.
Samsung Electronics has announced expectations for a historic financial performance in the third quarter of 2026. The tech giant projects an operating profit of approximately 108.1 trillion won, or roughly $80.2 billion. This figure represents a nearly ninefold increase compared to the same period last year. Revenue is also expected to climb significantly to 201.7 trillion won, or about $148 billion, marking a 134.4% year-on-year increase. The company is scheduled to release its preliminary earnings guidance this Thursday, October 8, 2026.
AI Demand Powers Memory Growth
The driving force behind these record-breaking projections is the surge in demand for specialized memory semiconductors. The company has seen a major uptick in sales for high-bandwidth memory (HBM) and enterprise solid-state drives, which are essential components for artificial intelligence infrastructure. Samsung has actively gained market share in this sector, reaching 33% in the second quarter of 2026, up from 21% earlier in the year. The company is also positioning itself for further growth by integrating its newer, sixth-generation HBM4 chips into upcoming AI accelerators.
Challenges in Foundry and Consumer Units
While the memory segment is performing well, other parts of the business are facing headwinds. The foundry and System LSI divisions, which manufacture chips for other clients, continue to operate at a loss. Despite recent efforts to secure new manufacturing contracts, the company does not expect this unit to become profitable until 2028, highlighting the long-term nature of these investments and the difficulty of competing in the custom chip space.
Additionally, the mobile and consumer electronics division is under pressure. After reporting an operating loss in the previous quarter, the unit is bracing for further financial strain. Consumer demand for devices has plateaued, and the rising cost of raw materials is squeezing profit margins. This creates a challenging environment for the company, as it relies on its profitable semiconductor business to offset the ongoing deficits in these hardware segments.
Investors monitoring the tech sector should note that these figures are based on preliminary projections. The upcoming official guidance on October 8 will be crucial in confirming whether the company can maintain these margins amidst currency fluctuations, where a stronger Korean won could limit export profits, and potential price competition in the commodity memory market. The main monitorable for the coming months will be the company’s ability to stabilize its struggling foundry and mobile units while maintaining its lead in the high-demand AI memory market.