Samsung Electronics (005930) Posts Record Q3 Profit But Shares Drop 5%

Samsung Electronics reported a record third-quarter operating profit of 107.44 trillion won, slightly below analyst expectations of 107.66 trillion won. Revenue reached 195.25 trillion won, close to the expected 195.79 trillion won. The company's revenue rose 126.88% year-on-year and 13.85% quarter-on-quarter, while operating profit soared 783.11% compared to the previous year. Despite these record figures, Samsung's shares fell 5% following the announcement.

The semiconductor business was the main profit driver, generating 147.1 trillion won in revenue and 106.5 trillion won in operating profit. Growth was supported by increased demand for AI-related memory chips, including HBM4 sales and server solid-state drives. Samsung declared 30 trillion won in dividends for Q3, which equals 4,601 won per common and preferred share. The company plans to return an additional 55 trillion to 75 trillion won to shareholders by the end of 2027 through dividends and share buybacks, pending board approval in late January 2027.

This quarterly report marks the fourth consecutive quarter of record revenue and profit for Samsung Electronics, making it the first global technology company to exceed 100 trillion won in quarterly operating profit. However, markets appeared unimpressed, as the chip business accounted for nearly all of the operating profit, highlighting the firm's increased dependence on memory chips. For investors, the planned shareholder returns and continued strong demand for AI-related memory chips are key factors to monitor.