Seoul: Samsung Electronics Co. announced on Thursday that it achieved record operating profit and sales in the fourth quarter of 2025, driven by robust sales of premium semiconductor products, including high bandwidth memory (HBM), against the backdrop of a global artificial intelligence (AI) surge. The company reported an operating profit of 20.07 trillion won (US$13.9 billion) for the quarter, a significant increase from 6.49 trillion won a year earlier, with revenue climbing 23.8 percent on-year to 93.83 trillion won. Net profit rose 153.3 percent to 19.64 trillion won compared to the same period in 2024.
According to Yonhap News Agency, these results surpassed market expectations, as analysts had predicted a net profit of 18.6 trillion won, based on a survey by Yonhap Infomax, the financial data arm of Yonhap News Agency. The device solutions division (DS), responsible for chips, saw a record operating profit of 16.4 trillion won in the October-December period, driven by strong sales of general DRAM and HBM products, a sharp rise from 2.9 trillion won a year earlier.
Samsung Electronics highlighted that a rise in global memory prices, coupled with strong demand for premium products like corporate-bound solid-state drives (SSDs), contributed to this record performance. Meanwhile, the device experience (DX) division, which encompasses mobile and TV businesses, recorded a combined operating profit of 1.3 trillion won. Specifically, the mobile business posted an operating profit of 1.9 trillion won, a decline from 2.1 trillion won a year earlier.
The home appliances division, however, posted an operating loss of 600 billion won, contrasting with an operating profit of 200 billion won in the fourth quarter of 2024, primarily due to global tariff issues, as stated by the company. Samsung Electronics also reported an expenditure of 10.9 trillion won on research activities during the fourth quarter, resulting in a record annual spending of 37.7 trillion won to secure future growth engines.
Facility investment for the October-December period reached 20.4 trillion won, with total spending for 2025 amounting to 52.7 trillion won, and the DS division accounting for 47.5 trillion won. For the entirety of 2025, Samsung Electronics reported a net income of 45.2 trillion won, marking an increase of 31.2 percent from the previous year. The company also reported an operating profit of 43.6 trillion won for the year, a rise of 33.2 percent, with annual sales increasing by 10.9 percent to 333.6 trillion won.
Despite these achievements, Samsung Electronics' annual operating profit across its entire business portfolio fell behind that of its chip rival SK hynix Inc., which posted 47.2 trillion won. Looking forward, Samsung Electronics anticipates continued growth led by the semiconductor business, amid increasing demand from AI and server sectors. The company plans to proactively respond to the strong demand for premium memory chips for AI solutions.
In the mobile division, Samsung Electronics aims to lead the smartphone sector with AI-related features, alongside the new Galaxy S26 models set to be unveiled next month. The company also intends to boost sales of home appliances by integrating AI technology and focusing on premium product lines. However, Samsung Electronics acknowledged existing business challenges in 2026 related to uncertainties in global tariff policies and geopolitics.
The company expressed its intent to overcome these challenges by leveraging a "one-stop solution" for the chip industry, offering a comprehensive package of semiconductor production from foundry to packaging. "Samsung Electronics will continue efforts to maintain business stability centered on profitability while keeping watchful eyes on uncertainties in the macro environment, such as global tariffs," the company stated in a release.
Samsung Electronics also announced special dividends worth 1.3 trillion won, bringing total payouts for the fourth quarter to 3.7 trillion won, with total dividends for fiscal 2025 amounting to 11.1 trillion won. During a conference call, Samsung Electronics revealed plans to commence mass production and supply of HBM4 in February. "In terms of HBM4, despite rising performance expectations from major clients, assessments have been proceeding smoothly since we supplied samples last year without a redesign," the company said.
The tech giant pledged to proactively address demand from the application-specific integrated circuit (ASIC) sector by supplying HBM4 products in a timely manner. Samsung also noted that while AI-related demand is expected to remain strong this year, a significant increase in memory prices may impact demand for mobile and PC products.