Samsung Electronics reported that its Device Solutions Division generated KRW 127.5 trillion (approximately $88.8 billion) in consolidated revenue and KRW 89.2 trillion (approximately $62.1 billion) in operating profit for the second quarter of 2026. The Memory Business drove the results to a new high, benefiting from strong server-related demand even as capacity remained constrained. Industry-wide price increases also contributed to the record performance.
Samsung said server products made up a record share of its sales mix during the quarter, while the Memory Business expanded shipments of its HBM4 product line and became the first to send HBM4E samples to major customers. Looking to the second half of 2026, Samsung expects continued growth in server-related demand tied to artificial intelligence infrastructure spending and wider adoption of agentic AI, alongside accelerating demand for server DRAM, enterprise SSDs, and HBM. The company anticipates the memory market will remain undersupplied despite some softening in mobile and PC-related demand.
The System LSI Business held revenue steady despite softer mobile demand in China and seasonal effects tied to flagship product cycles, aided by higher-volume mobile processors and image sensors that pushed first-half revenue to a record level. Samsung said the business secured orders for a next-generation flagship system-on-chip and continued building momentum with new customers.
The Foundry Business saw a significant improvement in earnings before incentive-related provisions, supported by HBM base-die demand and stronger orders from customers in the United States, including expanded design wins tied to 2-nanometer high-performance computing projects. Samsung Display Corporation posted KRW 7.5 trillion (approximately $5.2 billion) in revenue and KRW 0.7 trillion (approximately $487 million) in operating profit, with improved earnings in small and mid-size mobile OLED products and expanded volume in large-display gaming monitors.
The Mobile Experience and Networks businesses combined for KRW 33.2 trillion (approximately $23.1 billion) in revenue but posted an operating loss of KRW 0.7 trillion (approximately $487 million), as year-over-year revenue growth from the Galaxy S26 series and Galaxy A series was offset by rising component costs across the industry. The Visual Display and Digital Appliances businesses reported KRW 14.5 trillion (approximately $10.1 billion) in combined revenue and a slight operating loss, with television sales boosted by major sporting events and air conditioner demand supporting the Digital Appliances unit. Harman posted improved earnings on higher automotive segment sales and strong portable audio sales.
For the second half of 2026, Samsung said it plans to expand HBM4, DDR5, and SOCAMM2 production, ramp up 2-nanometer and 4-nanometer foundry output, grow its gaming monitor and IT OLED display business, and pursue AI-driven product strategies across its mobile, television, and automotive lineups, while pursuing cost discipline to offset ongoing component cost pressure.
