- Samsung posted a quarterly revenue of 74.6 trillion Korean won, up slightly from 74.07 trillion won a year earlier.
- Its second-quarter operating profit came in at 4.7 trillion won, which was a steep drop from the 10.44 trillion won recorded in the same period last year.
- Notably, its Device Solutions division recorded a 93.8% drop in operating profit year over year.
Due to a 93.8% decline in its chip business’s profits, Samsung Electronics announced a second-quarter operating profit of 4.7 trillion Korean won on Thursday, falling short of forecasts.
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Samsung’s operating profit for the second quarter was a sharp decline from the 10.44 trillion won it made during the same period last year, even though it exceeded its own estimate of about 4.6 trillion won.
The South Korean internet behemoth reported a quarterly revenue of 74.6 trillion won, exceeding its projection of 74 trillion won and up marginally from 74.07 trillion won the previous year.
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Samsung’s second-quarter results are contrasted with those of LSEG SmartEstimate, which is biased toward analyst estimates that are more reliably accurate:
-
Revenue
: 74.6 trillion won ($53.5 billion) vs. 74.43 trillion won -
Operating profit:
4.7 trillion won vs. 5.33 trillion won
Early trading saw a 1.5% decline in Samsung shares.
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Interestingly, its Device Solutions division—which includes its foundry, memory chip, and semiconductor design business units—saw a 93.8% decline in operational profit from the previous year.
In the second quarter, Samsung Electronics’ semiconductor division reported an operating profit of 400 billion won, a sharp decline from 6.45 trillion won at the same time last year. Chip sales dropped from 28.56 trillion won to 27.9 trillion won the previous year.
“Inventory value adjustments in memory and one-off costs related to the impacts of export restrictions related to China in non-memory had an adverse effect on profit,” the business stated in a statement.
In the upcoming quarters, Samsung’s foundry sector is expected to benefit from a $16.5 billion chip supply contract revealed on Monday to a major corporation.
Although Samsung has not yet identified the counterparty, Elon Musk, the CEO of Tesla, has stated that it is his American electric vehicle manufacturer and that the agreement may end up being bigger than initially disclosed.
Samsung, however, stated that it intends to continue enhancing its competitiveness in advanced semiconductors and proactively address the rising demand for high-value, AI-driven goods in the second half of the year.
Samsung claimed higher revenue and profits from its mobile experience and networks divisions, which are responsible for creating and marketing smartphones, tablets, wearable technology, and other gadgets.
In the second quarter, the unit reported an operating profit of 3.1 trillion won, up from 2.23 trillion won in the same time the previous year.
The unit’s total revenue increased to 29.2 trillion won from 27.38 trillion won the previous year.
Samsung reported that strong sales of its Galaxy tablets and smartphones, including the S25 and A series, helped to increase both revenue and operating profit year over year.
“In H2 2025, the [mobile experience business] plans to continue a flagship-first approach for smartphone sales focusing on foldables and the Galaxy S25 series while emphasizing the AI functionality of the Galaxy A series to increase market share,” Samsung stated.
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