Samsung Q2 Profit 19‑fold, Shares Fall 8%

Samsung Q2 Profit 19‑fold, Shares Fall 8%

Samsung Electronics (KS:005930) forecast a record‑high operating profit of 89.4 trillion won for the quarter ended 30 June 2026, representing a more than 19‑fold increase from 4.68 trillion won a year earlier and beating Bloomberg’s estimate of 84.2 trillion won. The company also projected revenue of 171 trillion won, more than double the 74.57 trillion won reported in the same quarter last year, but slightly below consensus expectations of 173.3 trillion won.

The surge is attributed primarily to outsized demand from the artificial‑intelligence (AI) sector, which has driven up orders for high‑bandwidth memory and conventional DRAM, tightening supply and lifting memory prices across the board. Samsung supplies NVIDIA Corporation with memory chips and is using NVIDIA’s AI GPUs to build its own data‑center capacity.

The core memory business is expected to remain the main profit driver for the quarter. Conversely, the foundry division may record a loss because of increased bonus expenses following a major payout to workers in the chips division in May. Samsung’s smartphone and broader electronics businesses are expected to face headwinds from higher memory costs, which have already dented consumer demand.

Full second‑quarter earnings are scheduled for release on 30 July 2026. Despite the strong profit outlook, Samsung’s shares slipped as much as 8% after the announcement, reflecting profit‑taking and investor concerns about the sustainability of the AI‑driven boom. The stock’s decline occurred while the KOSPI index fell more than 6% and rival SK Hynix (KS:000660) dropped 7%. Samsung’s shares have more than doubled year‑to‑date, making them vulnerable to sharp pull‑backs, especially given high leverage in local markets through exchange‑traded funds that have amplified recent volatility.