Seoul: Samsung Electronics Co. has reported an unprecedented operating profit for the fourth quarter, reaching the 20 trillion-won (US$13.8 billion) milestone for the first time, fueled by a boom in the chip industry. This achievement marks a more than 200 percent increase from the previous year, as stated in the company's preliminary earnings report.
According to Yonhap News Agency, if the figures are confirmed, it will be the first instance of Samsung's quarterly earnings hitting the 20 trillion-won threshold. The company also reported a 22.7 percent increase in sales, reaching 93 trillion won, marking the first time quarterly sales have exceeded 90 trillion won. However, net profit data was not disclosed.
The operating profit outpaced the average estimate by 1.8 percent, based on a survey conducted by Yonhap Infomax, the financial data firm of Yonhap News Agency. Samsung Electronics did not release detailed earnings breakdowns for its individual business segments, with the final earnings report expected later this month.
Analysts attribute the increased earnings to improved profitability in Samsung's Device Solutions (DS) division, which encompasses its core semiconductor operations. Korea Investment and Securities Co. noted that global prices of dynamic random-access memory (DRAM) and NAND flash surged about 40 percent in the fourth quarter compared to the previous quarter.
Market observers estimate the DS division's operating profit to be around 16 trillion to 17 trillion won, a significant rise from the 7 trillion won reported in the third quarter. Additionally, Samsung's non-memory business is believed to have reduced its operating losses, contributing to the overall enhancement of the division's performance.
Samsung's mobile business is estimated to have achieved an operating profit in the 2 trillion-won range, while the home appliance sector likely experienced an operating loss of 100 billion won, according to market analysts.
For the entire year of 2025, Samsung Electronics has projected its annual operating earnings at 43.53 trillion won, a 33 percent increase from the previous year. The company also reported a 10.6 percent rise in annual sales, totaling 332.77 trillion won, though net profit data remains unavailable.
Looking ahead to 2026, analysts predict Samsung Electronics will maintain its strong performance, driven by expanded high bandwidth memory (HBM) capacity. Kim Dong-won, a researcher at KB Securities Co., stated that Samsung Electronics is expected to achieve an annual operating profit of 123 trillion won this year, propelled by a substantial increase in DRAM prices and HBM shipments.
Kim further noted that Samsung's HBM sales are anticipated to reach 26 trillion won in 2026, tripling from the previous year. This growth is spurred by expectations that Samsung Electronics will join the supply chain for HBM4 for major technology companies, including Nvidia Corp. and Google.