Samsung Reaps Massive Profits, Not from Mobile Phone Sales

Samsung Electronics reported positive performance in the first quarter (Q1) of 2026, with operating profit increasing eightfold year-on-year. This figure set a new record, surpassing analyst estimates, driven by growth in its chip business.

Samsung recorded revenue of 133.9 trillion won, higher than analysts’ expectations of 132.69 trillion won. For operating profit, the South Korean giant earned 57.2 trillion won, exceeding predictions of 55.28 trillion won.

Samsung’s quarterly profit soared more than 750% compared to the same period last year. Its revenue also broke records with 70% year-on-year growth.

This early 2026 performance extends the momentum from Q4 2025, when Samsung achieved the previous highest operating profit record from 2018, amounting to 17.6 trillion won.

Shocks to the smartphone industry due to global memory chip shortages did not affect Samsung Electronics’ overall performance. This is because Samsung is also one of the leading memory chip producers.

Its strong performance in Q1 2026 highlights the strength of its chip business. That unit was one of those reaping significant profits from the global AI data centre explosion. Although this AI boom created a global memory chip shortage crisis, impacting price surges in consumer electronics devices such as mobile phones and laptops.

In its performance report, Samsung predicts that memory server demand will continue to strengthen into the second half of 2026, as large-scale cloud service providers continue to accommodate AI adoption and agent-oriented AI demand increases further.

Samsung’s shares jumped around 1% in South Korea after the revenue announcement but then declined in afternoon trading, down 0.8%. Its shares have risen around 90% throughout the year.