Samsung Electronics (005930) Q4 2025 earnings summary

Executive summary

• Achieved record-high quarterly revenue of KRW 93.8 trillion in Q4 2025, up 9% quarter-on-quarter and 24% year-over-year, with the highest annual revenue and operating profit in company history.

• Operating profit reached KRW 20.1 trillion in Q4 2025, up 207% YoY and 65% QoQ, with operating margin rising to 21.4%.

• DS division led growth with a 33% sales increase quarter-over-quarter, driven by strong AI-related memory demand and higher market prices.

• Display and Mobile segments maintained solid performance, though DX saw sequential declines due to seasonal and competitive pressures.

• Significant investments in R&D, sustainability, and advanced semiconductor processes supported growth.

Financial highlights

• 4Q 2025 sales reached KRW 93.8T, operating profit was KRW 20.1T, and net profit was KRW 19.6T (20.9% margin); full-year sales were KRW 333.6T and net profit was KRW 45.2T.

• SG&A expenses were KRW 24.2 trillion, up KRW 2.9 trillion QoQ, representing 25.8% of sales.

• R&D investment set a full-year record at KRW 37.7 trillion.

• Free cash flow for 2025 was KRW 36.5 trillion; 50% allocated for shareholder returns.

• EBITDA margin improved to 33% in Q4 2025.

Outlook and guidance

• Memory segment expects continued AI-driven demand, with plans to launch HBM4 and expand high-density DDR5 and SSD sales.

• DS division to focus on AI semiconductor leadership, expanding HBM and server DRAM supply, and advancing foundry process maturity.

• Foundry anticipates sequential revenue decline in Q1 2026 due to seasonality but targets double-digit growth for 2026.

• DX division to expand AI-driven products and integrate AI across device features and services.

• Premium and AI-driven products in display, mobile, and consumer electronics expected to drive growth.