Samsung Electronics (005930) Q1 2025 earnings summary

Executive summary

• Revenue for 1Q25 reached KRW 79.14 trillion, up 10% year-over-year and 4% quarter-on-quarter, driven by strong flagship smartphone, home appliance, and premium product sales across all major divisions.

• Operating profit was KRW 6.7 trillion, with an 8.4% margin, and net profit rose to KRW 8.2 trillion (10.4% margin), supported by Galaxy S25 series and high-value-added products.

• Growth was led by Device Experience (DX) and Mobile Experience (MX), offsetting some weakness in Device Solutions (DS).

• Major product launches included Galaxy S25, new AI TVs, and advanced memory and display technologies.

• The company completed the acquisition of Rainbow Robotics and announced Harman's acquisition of Masimo's consumer audio division.

Financial highlights

• Gross profit for 1Q25 was KRW 28.13 trillion, with a gross margin of 35.5%.

• Earnings per share rose to KRW 1,192, up from KRW 975 in 1Q24.

• R&D spending hit a record high for Q1, up 15% year-on-year, totaling KRW 9.03 trillion (11.4% of revenue).

• CapEx for 1Q25 was approximately KRW 12 trillion, focused on memory, display, and capacity expansion.

• Net cash position at quarter-end was KRW 93.99 trillion.

Outlook and guidance

• Gradual performance improvement expected in H2 2025, with AI server demand and on-device AI trends driving DS division growth.

• Foundry to focus on profitability and advanced nodes, including 2nm GAA mass production starting in Q2.

• Mobile and PC demand to benefit from AI integration; premium product strategy to continue amid macro and tariff risks.

• Annual regular dividends of KRW 9.8 trillion and ongoing share repurchases as part of shareholder return policy.