Samsung Electronics has delivered its strongest quarterly performance in company history, reporting record-breaking revenue and operating profit for the first quarter ended March 31, 2026 — powered by an extraordinary surge in demand for artificial intelligence memory products.
The South Korean technology giant posted consolidated revenue of KRW 133.9 trillion for the quarter, an all-time high that represented a 43% jump quarter-on-quarter. Operating profit equally reached a historic peak, climbing to KRW 57.2 trillion — underscoring the scale of Samsung’s earnings turnaround as the global AI infrastructure boom accelerates.
Memory Division Leads the Charge:
The Device Solutions (DS) Division was the undisputed engine of Samsung’s record quarter, posting an 86% quarter-on-quarter sales increase and generating KRW 81.7 trillion in consolidated revenue alongside KRW 53.7 trillion in operating profit.
At the heart of that performance was the Memory Business, which set its own all-time highs for both quarterly revenue and operating profit. Samsung credited a combination of factors: its commanding technological leadership in the memory market, higher average selling prices across the industry, and surging demand for high-value-added AI memory products — even as supply availability remained constrained.
A key milestone in the quarter was Samsung’s initiation of the industry’s first mass product sales of HBM4 and SOCAMM2 for NVIDIA’s Vera Rubin platform — marking a significant leap in next-generation AI chip infrastructure. The company also made timely progress in the development of PCIe Gen6 SSDs, reinforcing its position at the cutting edge of storage technology.
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Samsung’s Device eXperience (DX) Division — which houses its smartphone, tablet, and consumer electronics businesses — also posted a solid quarter, recording a 19% quarter-on-quarter sales increase on the back of new flagship smartphone launches.
While the division navigated higher cost pressures during the period, management focused on expanding sales of premium, high-value-added products across its business lines to protect profitability margins.
AI Demand to Sustain Momentum Through 2026
Looking ahead, Samsung struck a confident tone on the strength of AI-driven demand for the remainder of the year. In the second quarter of 2026, the Memory Business expects demand to remain robust as AI infrastructure investment continues to expand globally. The company is scheduled to deliver its first HBM4E samples in Q2 — an advanced iteration of its high-bandwidth memory stack designed to further cement its technical edge — while also positioning itself to capture early demand tied to new GPU and CPU launches anticipated in the second half of the year.
For the second half of 2026, Samsung projects that server memory demand will remain strong as major hyperscalers scale up to accommodate the growing enterprise adoption of AI and large language model (LLM) services. The company also identified agentic AI — systems capable of autonomous, multi-step reasoning and action — as an emerging growth catalyst that is expected to further accelerate memory demand.
Samsung’s strategic roadmap centres on deepening its dominance in the AI memory segment by expanding its portfolio of high-value products, including DDR5 and SOCAMM2 modules, while simultaneously staking out an early leadership position in the nascent PCIe Gen6 enterprise SSD market, with a particular focus on key-value cache storage applications increasingly critical to AI workloads.
With record results in hand and a pipeline of next-generation products aligned squarely with the AI infrastructure supercycle, Samsung Electronics appears firmly positioned to extend its momentum well into the second half of 2026.
Earnings at the System LSI Business improved on the back of expanded SoC sales. In Q2 2026, the System LSI Business aims to increase sales of SoCs and sensors for volume-tier smartphones. In H2 2026, the Business plans to secure flagship SoC design wins and expand its 200MP sensor customer base and product lineup.
Earnings for the Foundry Business declined as a result of off-peak seasonality. However, it continued to maintain design wins focused on HPCs and established a foundation in the silicon photonics business.
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In Q2 2026, the Business plans to reach full utilization of advanced-node production lines while targeting earnings improvement on increased HBM4 base-die supply. Development of the 1.4nm node remains on track, with the Business also pursuing the expansion of large-scale 2nm customers.
Looking ahead to H2 2026, the Foundry Business plans to start ramping up production of the second-generation 2nm process for mobile products, as well as the mass production of 4nm memory products and LPUs for AI and HPC customers. Furthermore, it aims to diversify its portfolio to include not just AI and HPC, but also the automotive and aerospace industries.
Meanwhile, Samsung Display Corporation (SDC) posted KRW 6.7 trillion in consolidated revenue and KRW 0.4 trillion in operating profit for the first quarter.
For the small and medium display business, SDC reported a decline in earnings due to seasonal effects and the impact of higher memory prices, while its large display business maintained stable sales on robust demand for OLED gaming monitors.
In Q2 2026, SDC’s small and medium display business will focus on sales in the relatively resilient high-end segment despite overall weak market demand, and its large display business aims to capture demand supported by new product launches and the impact of global sporting events.
In H2 2026, SDC expects continued market uncertainty and low visibility in small and medium displays, and it will pursue higher revenues via premium products with differentiated technology as well as 8.6G IT OLED mass production. In large displays, it intends to solidify its position in the premium TV market while expanding its customer base in monitors.
MX To Secure Revenue Expansion With Diverse Product Mix
The MX and Networks Businesses posted KRW 38.1 trillion in consolidated revenue and KRW 2.8 trillion in operating profit for the first quarter.
The MX Business saw sales and profit increase as a result of its premium product mix, securing single-digit profitability via proactive cost optimization.
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In Q2 2026, amid diminishing launch effects, QoQ revenue is expected to decline. However, the MX Business will drive year-on-year (YoY) revenue growth via flagship sales and new A-series devices.
In H2 2026, the MX Business plans to pursue comprehensive growth by solidifying flagship-led sales and upselling initiatives while staying ahead of evolving customer needs by strengthening the product development of foldables. It will also pursue efficiency initiatives to mitigate the impact of rising cost pressures on profitability.
In Q1 2026, the Networks Business experienced a decline in earnings QoQ and YoY as it faced investment headwinds in the telecommunications industry. In Q2 2026, it intends to improve earnings via overseas sales expansion. Looking to H2 2026, the Business plans to capitalize on leadership in vRAN, ORAN and AI-RAN to capture new markets while securing profitability through structural cost discipline.
The Visual Display (VD) and Digital Appliances (DA) Businesses posted KRW 14.3 trillion in consolidated revenue and KRW 0.2 trillion in operating profit in the first quarter.
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The VD Business saw improved profitability through solid sales of premium and big-size TVs as well as resource optimization.
In Q2 2026, the VD Business will target increased revenue by capturing sporting-event-driven demand with a strengthened product lineup. In H2 2026, it intends to solidify TV sales leadership via AI features while accelerating service and OS business expansion.
Meanwhile, the DA Business experienced a limited improvement to earnings in Q1 2026 amid cost pressures and tariffs. In Q2 2026, it will drive revenue growth through a new premium lineup and a recovery in demand for air conditioners. In H2 2026, the Business aims to implement cost efficiency initiatives while driving premium sales.
Harman posted an earnings decline in Q1 2026 due to increased expenses amid memory constraints and audio seasonality. In Q2 2026, it expects earnings to grow on increased auto supply, and in H2 2026, it will seek to maintain profitable momentum through increased automotive supply and premium audio sales.
Credit: Samsung Electronics