Samsung Electronics reported a preliminary operating profit of 89.4 trillion won ($58.4 billion) for the April-to-June quarter of 2026, marking an increase of over 19-fold year-on-year and setting a new corporate record. This figure exceeded the analyst consensus of 84.4 trillion won compiled by FnGuide. Expected revenue for the second quarter was 171 trillion won, a 129.3 percent increase from the previous year, though this slightly missed analyst forecasts of 173.3 trillion won.
The record profit was primarily fueled by the booming demand for artificial intelligence (AI) memory chips, overcoming earlier market concerns about a potential slowdown in AI investment. Industry analysts, such as Marc Einstein from Counterpoint Research, highlighted that this performance was directly linked to the AI boom, describing it as one of "the best quarterly performances ever" and comparable to the tech sector record set by Nvidia earlier in the year. Supply constraints and soaring demand for chips suitable for data centers and other AI infrastructure have led Samsung to hike memory chip prices, with IDC researchers expecting tight supplies to continue through next year.
Despite the groundbreaking earnings, Samsung's shares fell by more than 8 percent in Seoul on Tuesday morning. This dip occurred as some investors had anticipated even higher profits, leading to a tempered market reaction to the otherwise stellar results. The company's stock market value has more than doubled since the beginning of the year, and the strong performance of both Samsung and rival SK Hynix has significantly boosted South Korea's benchmark Kospi index by over 80 percent this year. South Korea is also investing heavily in chip manufacturing, with plans for at least $880 billion in projects led by Samsung and SK Hynix in the coming years.
