Samsung Electronics' latest financial report shows that in the first quarter of 2026 (January–March), its revenue reached 133.9 trillion South Korean won (approximately $90.1 billion), up 43% quarter-on-quarter and 69% year-on-year. Operating profit stood at 57.2 trillion won (about $38.5 billion), surging 184.6% quarter-on-quarter and 7.5 times year-on-year. Net profit amounted to 47.2 trillion won (roughly $31.8 billion), rising 140.5% quarter-on-quarter and 4.8 times year-on-year. Both revenue and operating profit of Samsung Electronics hit all-time highs in the quarter. Among all businesses, the memory business under the DS Division posted revenue of 74.8 trillion won (around $50.3 billion), contributing the largest share to overall revenue and accounting for over 50% of total revenue for the first time.
Samsung's memory business recorded Q1 revenue of 74.8 trillion won, up 101% quarter-on-quarter and 292% year-on-year. Benefiting from its technological leadership in the memory market and higher average selling prices (ASP), the memory business achieved record-high quarterly revenue and operating profit.
The DS Division, which houses the memory business, generated Q1 revenue of 81.7 trillion won (approximately $55 billion), rising 86% quarter-on-quarter and 225% year-on-year. Its operating profit reached 53.7 trillion won (about $36.1 billion), jumping 2.3 times quarter-on-quarter and 47.8 times year-on-year. The growth was mainly driven by record earnings from the memory business, rising shipments of high-value AI products, elevated ASP amid persistent supply shortages, and expanded sales of flagship SoCs.
In terms of DRAM, Samsung's Q1 HBM shipments more than tripled year-on-year. The launch of 1c-process DRAM has boosted the performance of HBM4 products, which are being actively adopted by customers and commanding premium pricing. Samsung has begun supplying the industry's first mass-produced HBM4 and SOCAMM2 products for NVIDIA Vera Rubin platform. The memory division will continue to expand its market share in high-value AI-oriented products such as DDR5 and SOCAMM2. Starting from Q2 2026, Samsung plans to provide prototype products of its 7th-generation HBM (HBM4E) to key customers. It is expected that HBM4 shipments will account for more than half of total HBM shipments starting in Q3. Samsung emphasized that some customers have reserved supply for 2027, and the supply-demand balance in 2027 will be tighter than this year even considering current market demand.
In terms of NAND, Samsung has timely developed PCIe Gen6 SSD. Leveraging high-performance products optimized for KV Cache, the memory division aims to take the lead in capturing the market for first-generation PCIe Gen6 enterprise SSDs (eSSD).
Samsung is shifting its supply strategy toward Long-Term Agreements (LTA). Unlike traditional short-term supply contracts, LTAs feature strong binding force, improving business stability and transparency. Samsung is seeking multi-year supply agreements within its existing supply capacity and has already signed deals with several customers. The company stated it will flexibly adjust capital investment scale based on customers’ medium- and long-term needs to proactively respond to market changes.
Looking ahead to the second quarter, Samsung expects memory market demand to remain robust amid the expansion of AI infrastructure, with the DS Division maintaining strong performance. In addition to delivering the first batch of HBM4E samples, Samsung plans to capture early demand for new GPUs and CPUs launching in the second half of 2026, and will continue implementing an AI product-centric sales strategy across DRAM and NAND businesses.
For full-year 2026, Samsung projects sustained strong demand for server DRAM and SSDs in 2026H2, driven by hyperscale data center operators expanding AI services and widespread enterprise adoption of Large Language Models (LLMs). Furthermore, Agentic AI is expected to further accelerate such demand growth.
On capital expenditure, Samsung plans a substantial year-on-year increase in 2026 capital spending to meet surging AI demand. For the memory business, the company will scale up equipment investment utilizing new wafer fabs and cleanroom facilities, driving a notable rise in overall capital expenditure. These initiatives will strengthen sustainable growth and operational efficiency across its memory business.
In addition, Samsung stated it is not in a position to comment on the recent strike incidents. Following rallies at its Pyeongtaek factory, the labor union previously announced a general strike to begin on May 21. Samsung noted that it is making every effort through dedicated teams and established systems to prevent production disruptions.
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