Samsung Electronics announced its preliminary consolidated results for the third quarter of 2025 on the 14th. Sales reached KRW 86 trillion, and operating profit was KRW 12.1 trillion, marking increases of 15.3% and 158.6% respectively compared to the previous quarter. Compared to the same period last year, sales rose by 8.7% and operating profit by 31.8%.

On a cumulative basis from January to September, sales were KRW 239.71 trillion, and operating profit was KRW 23.46 trillion. Compared to the cumulative figures for the same period last year (sales KRW 225.08 trillion, operating profit KRW 26.23 trillion), sales increased by 6.5%, while operating profit declined by 10.6%.

This quarter's operating profit is the highest level in three years since 2022 and is considered an earnings surprise amid the recent trend of industry downturns.

The main driver of this performance is the recovery in the Device Solutions (DS) division. The global spread of artificial intelligence (AI) has led to a surge in demand for high-bandwidth memory (HBM), causing memory semiconductor prices to rebound, and demand for server DRAM and NAND from major clients also showed signs of recovery.

Industry estimates suggest that the DS division's operating profit was around KRW 5 trillion to KRW 6 trillion. This is attributed to the improved product mix as the proportion of high-value memory products like HBM3E expanded. Additionally, the efficiency in HBM production and increased utilization rates in the foundry (contract manufacturing) segment are believed to have reduced the deficit.

An industry insider stated, “The demand for AI semiconductor memory increased faster than expected, with the DS division estimated to account for more than half of the overall performance,” adding, “Samsung Electronics' ongoing expansion of HBM3E supply and preparations for mass production of next-generation HBM4 are expected to positively impact future performance.”

The industry estimates that the operating profit of the Device Experience (DX) division for the third quarter was around KRW 3 trillion. The launch of premium smartphones like the Galaxy Z Fold 6 and Z Flip 6 in July, combined with cost stability in the home appliance sector, is believed to have improved profitability. Consumer products such as TVs and home appliances also reportedly saw slight performance improvements over the previous quarter, aided by exchange rate effects and cost efficiencies.

Securities firms forecast Samsung Electronics' operating profit for the fourth quarter to be around KRW 10 trillion to KRW 11 trillion. The recovery in the semiconductor market is expected to continue. With anticipated increases in HBM and DDR5 memory shipments due to expanding AI server demand, and if orders from major cloud service providers in the US and Europe are maintained, it is expected to positively affect memory price stability. However, there is also the possibility that expanded new investments, such as early preparations for HBM4 mass production, could act as short-term cost factors.

By the end of the year, demand for consumer products like smartphones and home appliances is expected to seasonally slow down. There remains a possibility of some memory price adjustments, leading to analyses that the increase in operating profit for the fourth quarter may be more moderate than in the third quarter.

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