Samsung Electronics at present reported monetary outcomes for the third quarter ending September 30, 2026.
Our consolidated gross sales amounted to 195.3 trillion received, which can be a file excessive for the quarter and elevated by 14% quarter-on-quarter (QoQ). Working revenue reached 107.4 trillion received, making Samsung Electronics the primary high-tech firm on the planet to have a quarterly working revenue of over 100 trillion received.
Within the System Options (DS) phase, as demand for semiconductors remained robust, the reminiscence enterprise recorded file excessive quarterly gross sales and working revenue, recording a 15% improve in gross sales from the earlier quarter.
The System Expertise (DX) division recorded an 8% improve in income from the earlier quarter and an working lack of 0.8 trillion received.
DS will proactively reply to growing demand for AI functions and keep progress
The DS division recorded consolidated gross sales of 147.1 trillion received and working revenue of 106.5 trillion received within the third quarter.
The reminiscence enterprise delivered one other file quarter by managing its product combine with a deal with AI merchandise amid capability constraints. Sturdy demand momentum for servers has pushed up market costs for all functions.
Moreover, the enterprise continued to expertise robust demand from AI functions. Whereas proactively responding to the rising demand for server SSDs, we considerably expanded HBM4 gross sales on the again of our industry-leading product competitiveness.
In This autumn 2026, we count on reminiscence companies to proceed investing in AI infrastructure because the industry-wide race for AI management continues. The expansion in reminiscence demand is predicted to revolve round merchandise associated to new CPU and GPU platforms, whereas the surge in QLC SSD demand will probably be associated to the growth of private AI agent companies.
Within the reminiscence enterprise, we are going to keep a gross sales technique centered on AI functions to determine market management. The enterprise goals to leverage its industry-leading merchandise and unparalleled scale to additional develop HBM, server DRAM and SSD gross sales, in addition to improve provide of high-speed server DDR5 merchandise and QLC SSDs.
We count on AI infrastructure capital spending to succeed in historic ranges in 2027 because the AI ecosystem expands. Moreover, AI-driven demand progress is predicted to far exceed {industry} provide in comparison with 2026. The enterprise additionally goals to leverage superior expertise to strengthen its market management and optimize its product combine consistent with market traits and buyer wants.
The corporate plans to steer the high-end market and strengthen its AI-driven portfolio whereas constructing a steady gross sales base by securing multi-year contracts and enabling well timed preparation of recent merchandise tailor-made to the necessities of AI functions.
The system LSI enterprise achieved gross sales progress within the third quarter of 2026, pushed by mass manufacturing of system-on-chip (SoC) and picture sensors for brand new fashions launched within the second half of the 12 months. Moreover, the customized SoC enterprise secured initiatives by establishing new buyer partnerships.
Within the fourth quarter of 2026, we plan to take care of steady manufacturing and gross sales of our flagship SoC and 200MP picture sensor.
Within the system LSI enterprise, we goal to increase gross sales of flagship SoCs and strengthen partnerships with customized SoC clients in 2027. The corporate additionally plans to speed up gross sales of its mainstay high-resolution picture sensors and diversify into non-mobile functions.
The Foundry enterprise skilled important income and revenue enchancment because of HBM-based die gross sales progress and superior node gross sales growth, in addition to continued order wins primarily from 2nm HPC clients, together with main hyperscalers.
Waiting for the fourth quarter of 2026, the Foundry enterprise is on monitor to realize double-digit income progress and continued earnings enchancment pushed by new cellular merchandise, elevated quantity manufacturing of 4nm NPUs, and elevated gross sales of reminiscence merchandise.
In 2027, we goal for income progress pushed by 4nm and 2nm superior nodes, primarily based on robust demand for AI and HPC. The corporate may even increase its international provide capabilities with the beginning of operations at a brand new plant in Taylor, Texas.
SDC goals for additional progress with a diversified product lineup
Samsung Show Company (SDC) recorded consolidated gross sales of 8 trillion received and working revenue of 1.1 trillion received within the third quarter.
SDC reported improved earnings for its small and medium-sized show enterprise primarily based on stable demand for high-end cellular merchandise, whereas its massive show enterprise expanded gross sales quantity and income because of progress within the gaming monitor market.
Within the fourth quarter of 2026, SDC expects a optimistic affect from year-end seasonal demand peaks and new product launches, however expects earnings enchancment to be restricted because of exterior components.
Throughout the present quarter, the small and medium-sized show enterprise will proactively reply to buyer demand and try to increase gross sales, whereas the massive show enterprise will deal with bettering profitability, primarily for gaming screens.
SDC expects market demand to stay weak in 2027 amid continued uncertainty. In smartphones, we are going to improve the ratio of premium merchandise corresponding to foldables within the small and medium-sized show enterprise, and in IT, we are going to goal to increase gross sales by launching a brand new 8.6G IT line and strengthening our product lineup. Within the massive show enterprise, we are going to proceed to pursue improved profitability with a deal with excessive value-added fashions.
MX leverages high-growth premium market to take care of cellular management
Consolidated income for the MX enterprise and community enterprise within the third quarter totaled 37.7 trillion received, with an working lack of 0.6 trillion received. Gross sales elevated quarter-over-quarter and year-over-year (year-over-year) primarily as a result of launch of recent flagship merchandise, together with foldable merchandise. Income elevated in comparison with the earlier quarter because of an enchancment in the principle gross sales combine, however decreased in comparison with the identical interval final 12 months because of value strain.
MX Enterprise plans to drive end-of-year peak season gross sales progress within the fourth quarter of 2026, with a deal with flagship merchandise such because the Galaxy S26 sequence, Galaxy Z Fold8 Extremely, and Z Fold8, in addition to new ecosystem merchandise. We additionally goal to scale back profitability threat via improved effectivity throughout all enterprise processes.
In 2027, MX Enterprise goals to take care of its management in cellular by specializing in three strategic priorities: First, enhance the product combine round flagship merchandise with differentiated experiences for every buyer phase. Second, we make our merchandise extra interesting and ship tangible worth via innovation in {hardware} and kind components. Third, we are going to reduce the decline in income via agile market responses and operational effectivity initiatives.
Within the third quarter of 2026, income within the Networks enterprise decreased quarter-over-quarter and year-over-year because of decrease gross sales in North America and high-margin software program. The corporate goals to realize profitability within the fourth quarter of 2026 via income progress in North America, South Korea, and Japan. In 2027, we plan to drive worthwhile progress by securing new orders regardless of headwinds to communications funding.
VD/DA enterprise and HARMAN increase AI-based product innovation
Within the third quarter, the visible show (VD) enterprise and digital equipment (DA) enterprise had a complete of 13.9 trillion received in consolidated income and an working lack of 0.2 trillion received.
Within the VD enterprise, income decreased as a result of finish of main sporting occasions, and income decreased because of elevated bills. Within the fourth quarter of 2026, we goal to seize peak season demand via enhanced channel partnerships and differentiated advertising, whereas increasing premium product gross sales to offset the affect of value will increase. Though general TV demand is predicted to stay flat or decline barely in 2027, the enterprise will deal with securing a worthwhile progress engine by providing a differentiated TV expertise, in addition to strengthening its companies and platform companies.
Alternatively, within the DA enterprise, regardless of strengthening home advertising actions and progress within the B2B/subscription enterprise, income decreased because of will increase in uncooked materials and logistics prices. Within the fourth quarter of 2026, we goal to enhance profitability by bettering our premium combine, and in 2027, we goal to safe profitability by increasing gross sales of progressive AI merchandise and rising our high-margin B2B enterprise.
Harman’s earnings improved because of elevated gross sales of audio and cars, benefiting from a tailwind from US non-recurring tariff refunds. Going ahead, the enterprise goals to take care of regular progress momentum by increasing its audio management via the event of recent automotive companies and strengthening its portfolio.
Shareholder returns: breakdown of third quarter dividends and complete dividends
Money dividends for the third quarter will probably be 4,601 received per frequent inventory and 4,601 received per most popular inventory, for a complete of 30 trillion received.
Complete shareholder return in 2026 is predicted to be 90-110 trillion received, of which 35 trillion received has already been deliberate or accomplished, and the corporate expects the remaining funds to be 55-75 trillion received.
The return of the remaining funds will embrace a big share repurchase and retirement program, together with money dividends.
We acknowledge the elevated market curiosity within the worth differential between frequent inventory and most popular inventory and are dedicated to actively reviewing and adjusting the proportion of most popular inventory in our share repurchase and cancellation packages primarily based on market situations.
The subsequent shareholder return coverage, together with the ultimate shareholder return quantity and particular implementation plan for the remaining funds in 2026, will probably be finalized on the Board of Administrators assembly scheduled for late January 2027, and will probably be introduced thereafter.
Capital expenditures for Q3 2026
Samsung Electronics’ capital funding within the third quarter reached 29 trillion received, a rise of 12.2 trillion received from the earlier quarter (quarter-on-quarter) and 19.8 trillion received year-on-year (year-on-year). Capital funding consists of 27.2 trillion received within the System Options (DS) division and 1.1 trillion received in Samsung Show Company (SDC). The cumulative complete from January to September was 56.9 trillion received, a rise of 24.7 trillion received from the identical interval final 12 months, of which 52.8 trillion received will probably be allotted to the DS sector and a couple of.4 trillion received to the SDC.
Capital funding for the complete 12 months of 2026 is predicted to be roughly 84.4 trillion received, of which 76.8 trillion received will probably be allotted to the DS sector and three.9 trillion received to SDC.
The DS sector plans to spend money on new fabs and different infrastructure to fulfill robust demand for AI and HPC whereas guaranteeing medium- to long-term readiness. In SDC, investments are centered on upgrading current manufacturing traces.
