Samsung Electronics (005930) Q4 2025 earnings summary

Executive summary

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

• Operating profit reached KRW 20.1 trillion in Q4 2025, up KRW 7.9 trillion QoQ and 207% YoY, with operating margin rising to 21.4%.

• DS division drove growth with a 33% sales increase QoQ, led by strong AI-related memory demand and higher market prices; memory and Device Solutions segments saw significant profit improvement.

• Display and Mobile segments maintained solid performance but faced seasonal and competitive pressures, including U.S. tariffs and fading smartphone launch effects.

• Significant positive currency effects contributed KRW 1.6 trillion to operating profit.

Financial highlights

• 4Q 2025 sales reached KRW 93.8T, up 24% YoY and 9% QoQ; operating profit was KRW 20.1T, up 207% YoY and 65% QoQ.

• Full-year 2025 sales were KRW 333.6T (+11% YoY), with operating profit at KRW 43.6T (+33% YoY).

• Net profit for 4Q 2025 was KRW 19.6T (20.9% margin); full-year net profit was KRW 45.2T (13.6% margin).

• SG&A expenses rose to KRW 24.2 trillion, up KRW 2.9 trillion sequentially, representing 25.8% of sales.

• R&D investment hit a quarterly record of KRW 10.9 trillion and a full-year record of KRW 37.7 trillion.

Outlook and guidance

• 2026 expected to face persistent risks from global trade barriers and geopolitical uncertainties.

• DS division to focus on AI semiconductor leadership, expanding HBM and advanced packaging, and maintaining a balanced product mix; plans to launch HBM4 and expand high-density DDR5 and SSD sales.

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

• Memory market to remain robust in Q1 2026, with limited DRAM bit shipment growth and mid-single-digit NAND bit growth.

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