Samsung Electronics posts Q2 profit of $62 bil., up nearly 20-fold

Samsung logos appear at Samsung Electronics' office in Seocho District, Seoul, July 7. Yonhap

Samsung Electronics said Thursday its operating profit for the second quarter stood at 89.5 trillion won ($62 billion), up 1,814 percent from a year earlier.

Revenue for the April-June period reached 171.5 trillion won, up 130 percent year-on-year. Both revenue and operating profit set new quarterly records, surpassing the previous highs of 133.9 trillion won in revenue and 57.2 trillion won in operating profit.

The chip-making Device Solutions (DS) Division alone posted 127.5 trillion won in sales, up 357 percent from a year earlier, while operating profit surged more than 220-fold to 89.2 trillion won.

The record results were driven by the memory business, which capitalized on strong demand and rising selling prices for server products amid the growing adoption of agentic artificial intelligence (AI). The company also expanded shipments of high-bandwidth memory 4 (HBM4) and became the first in the industry to deliver next-generation HBM4E samples to major customers.

Its chip-designing and foundry business also improved. It noted that the System LSI business achieved record first-half revenue by expanding sales of mobile application processors and image sensors. The foundry business also improved in its revenue due to higher demand for HBM base dies and products from North American customers.

Higher memory prices, however, took a toll on the company's device businesses. The device-making Device Experience (DX) Division posted 48 trillion won in revenue, down 7.2 percent from a year earlier, while swinging to an operating loss of 800 billion won from an operating profit of 4.7 trillion won a year earlier.

The company said the Mobile Experience (MX) business recorded higher revenue from a year earlier, supported by solid flagship sales of the Galaxy S26 series, but operating profit declined as rising component costs and broader industry-wide cost pressures weighed on earnings. The MX and Network businesses posted 700 billion won of operating loss.

Looking ahead, the company said the DS division is expected to sustain its earnings growth on the back of the expanding adoption of agentic AI. The DX division, however, is expected to remain under pressure, and the company is planning to overhaul the division’s business structure.