Samsung Reports Record Q2 Profit Amid AI Server Demand, Mobile Unit Posts Loss
Samsung Electronics reported a record operating profit of 89.5 trillion won for the second quarter of 2026, driven by strong demand for AI server chips. Revenue reached 171.5 trillion won, up significantly year on year and sequentially, with earnings per share rising to 10,849 won. The Device Solutions division was a key contributor due to surging sales in high-bandwidth memory (HBM) products like HBM4E. In contrast, the mobile and networks business recorded an operating loss of 700 billion won despite higher revenue from Galaxy S26 and A series phones. Rising component costs negatively impacted margins. Samsung also noted a slight operating loss in its consumer electronics unit while Samsung Display Corporation reported modest profits. Looking ahead, Samsung expects sustained demand for server memory due to AI infrastructure spending but warned of ongoing supply tightness into 2027. The company has secured long-term contracts with major data center clients and announced significant chip supply agreements during a recent visit by South Korean President Lee Jae Myung.
Topics: AI server chips HBM4 mobile unit loss operating profit record