Did Samsung Achieve a Record Operating Profit of $13.8 Billion in the Fourth Quarter?
Synopsis
Key Takeaways
Seoul, Jan 8 (NationPress) On Thursday, Samsung Electronics unveiled a historic operating profit for the fourth quarter, reaching the remarkable milestone of 20 trillion won (equivalent to $13.8 billion) for the first time, propelled by a significant surge in the chip sector.
This operating profit represented a staggering increase of over 200 percent compared to the same period last year, as detailed in a preliminary earnings report by the company.
If validated, this would be the first instance of the company's quarterly earnings hitting the 20 trillion-won threshold, according to Yonhap news agency.
Sales saw a notable rise of 22.7 percent, amounting to 93 trillion won, marking the first occasion that quarterly sales exceeded the 90 trillion-won level.
Details regarding net profit remain undisclosed.
The operating profit exceeded average projections by 1.8 percent, based on a survey conducted by Yonhap Infomax, the financial data division of Yonhap News Agency.
Samsung Electronics has not provided a comprehensive breakdown of earnings across its various business segments.
The final earnings report is scheduled for release later this month.
Analysts noted that the boost in earnings was likely due to enhanced profitability in the Device Solutions (DS) division, which encompasses the company's primary semiconductor operations.
According to Korea Investment & Securities Co., global prices for dynamic random-access memory (DRAM) and NAND flash surged by approximately 40 percent in the fourth quarter compared to the preceding quarter.
Market analysts estimate the operating profit of the DS division to be around 16 trillion to 17 trillion won, a significant increase from the 7 trillion won reported in the third quarter.
Furthermore, it is believed that Samsung's non-memory sector has also likely narrowed its operating losses, contributing to an overall enhancement in the division's performance.
The mobile division is projected to have achieved an operating profit in the vicinity of 2 trillion won, while the home appliance segment likely faced an operating loss of 100 billion won, as per market analysts.
For the entire year of 2025, Samsung Electronics has projected its annual operating earnings at 43.53 trillion won, an increase of 33 percent from the previous year.
Annual sales rose by 10.6 percent, totaling 332.77 trillion won. Data on net profit is also not available.
Looking ahead to 2026, analysts predict that Samsung Electronics will continue to deliver strong results, supported by its expanded high bandwidth memory (HBM) capacity.
"This year, Samsung Electronics is anticipated to achieve an annual operating profit of 123 trillion won, driven by a significant increase in DRAM prices and heightened HBM shipments," stated Kim Dong-won, a researcher at KB Securities Co.