[News] Samsung Sees Explosive 755% Profit Growth as Q1 Tops Full-Year 2025 Earnings amid Memory Boom
Amid a sharp memory price surge, Samsung is poised for a record-breaking first quarter, projecting that Q1 earnings will exceed its full-year profit from last year, as highlighted by Reuters. According to its April 7 press release, cited by the Chosun Daily, preliminary revenue soared 68% year-on-year to 133 trillion won, while operating profit jumped 755% to 57.2 trillion won.
Reuters notes that the blockbuster figure nearly triples Samsung’s previous quarterly operating profit record of 20 trillion won, set in the fourth quarter of 2025. According to the Chosun Daily, it also marks the strongest quarterly performance ever by a South Korean company, with a single-quarter operating profit surpassing its full-year total in 2025 (43.6 trillion won). Margins, meanwhile, roughly doubled from the previous quarter—resetting the benchmark in Korea’s corporate history, the report adds.
Key Drivers Behind the Record Quarter
The results deliver a clear earnings surprise, with analysts cited by Chosun Daily initially forecasting first-quarter operating profit at around 37 trillion won. The most bullish estimate—from Meritz Securities—still only reached 53.9 trillion won, falling short of Samsung’s actual result, the report suggests.
Reuters, citing Meritz Securities, estimates Samsung’s chip division delivered around 54 trillion won in operating profit—roughly 95% of the total—while its mobile unit posted about 4 trillion won.
ZDNet attributes the strong performance to the AI-led upcycle in memory chips and strong demand for its newly launched Galaxy S26 series, while a favorable exchange rate backdrop also added tailwinds.
The report also highlights that DRAM led the rally, with prices showing particularly strong momentum. Industry estimates cited by the report suggest DRAM ASPs surged as much as 90% quarter-on-quarter, while NAND also reportedly posted gains broadly in line with DRAM’s upward trajectory.
As noted by the Chosun Daily, alongside surging HBM demand, prices for commodity DRAM have climbed for 11 straight months, significantly boosting profitability. More recently, NAND flash has also tipped into shortage, leaving memory chips effectively sold out amid tight supply, the report adds.
2Q Momentum Accelerates
Against this backdrop, expectations are building that Samsung Electronics can sustain strong momentum into the second quarter and the rest of 2026. Industry estimates cited by the Chosun Daily now suggest its full-year operating profit could climb toward 320 trillion won.
Higher DRAM prices ahead could provide strong tailwinds, as Samsung Electronics has lifted Q2 DRAM prices by around 30% quarter-on-quarter, following an estimated 100% surge in the first quarter, according to ET News.
The report reveals Samsung had already wrapped up pricing negotiations with key customers and finalized supply contracts in late March. The increase reportedly covers blended pricing across HBM as well as commodity DRAM used in servers, PCs, and mobile devices.
TrendForce projects that conventional DRAM contract prices will rise 58–63% quarter-on-quarter in Q2 2026, while NAND flash prices are set to jump 70–75%, underscoring sustained momentum across the memory market.
Uncertainty Lurking
However, Reuters notes that rising energy costs following the escalation of U.S.-Israel-Iran tensions have sparked concerns over cooling AI data center demand, while also raising the risk of disruptions to critical chipmaking materials—potentially weighing on the memory sector’s growth outlook.
The report, citing analysts, adds that a key factor ahead will be how Samsung Electronics structures long-term supply agreements with customers to sustain its semiconductor profitability.
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(Photo credit: Samsung)
