Samsung estimated July-September operating profit of 107.4 trillion won, about $80.2 billion, slightly above the LSEG SmartEstimate, and said revenue likely rose 127 percent to 195 trillion won.
Samsung Electronics on Thursday projected third-quarter operating profit of 107.4 trillion won, about $80.17 billion, slightly ahead of an LSEG SmartEstimate of 106.1 trillion won. Reuters reported the guidance from Seoul and said it would be a first for a technology company above 100 trillion won in a quarter.
The estimate is nearly nine times the year-earlier result and a fourth straight record operating quarter. Samsung also said revenue likely rose 127 percent to 195 trillion won. Detailed divisional results are due on October 29.
Reuters said the jump reflects a memory shortage as AI infrastructure spending outruns supply. Samsung and Micron expect the imbalance to last into 2028, with Chinese competition and a possible slowdown in AI spending as risks. Shares slipped 0.2 percent in early trade, against a 0.5 percent fall in the KOSPI, and remain more than 25 percent below a June record.
Mirae Asset analyst Kim Seok-hwan said the market's focus had shifted to whether the earnings growth that began a year ago is sustainable. Analysts expect fourth-quarter profit to rise 8.2 percent from the third quarter, slower than the prior sequential gain, as chip-price growth cools. TrendForce expects conventional DRAM contract prices to rise 10 to 15 percent in the fourth quarter, far less than a second-quarter surge of about 60 percent.
Analysts told Reuters the mobile business posted a larger-than-expected loss of more than $1 billion in the quarter as component costs rose, and that the foundry business is still expected to lose money. Those divisional figures are analyst estimates, not Samsung's guidance.
People Sentiments Positive
- Kim Seok-hwan said the market focus had shifted to whether the earnings growth is sustainable.