Samsung Electronics Reports Strong Annual Profit, Driven by Semiconductor Sales

Samsung Electronics Co., Ltd. (KR: 005930) announced on 29 January 2026 that its operating profit for the fiscal year ended 31 March 2025 rose significantly, largely due to robust performance in the semiconductor division. The company attributed the increase to a “glimmering” year‑over‑year improvement in semiconductor operations, which outpaced other segments such as consumer electronics and home appliances.

Financial Highlights

  • Operating profit: The company’s operating profit increased markedly compared with the previous year, driven by the semiconductor business.
  • Earnings per share (EPS): Analysts now expect a fiscal‑year EPS of 106.91 USD, up from 90.88 USD in the prior fiscal year. For the most recent quarter, the consensus EPS is 41.39 USD, a jump from 20.01 USD in the same period a year earlier.
  • Revenue growth: Forecasted revenue for the fiscal year is 228.01 billion USD, representing a 7.1 % increase from 220.95 billion USD in the previous year. Quarter‑on‑quarter revenue growth is projected at 15.76 %, up from 54.35 billion USD to 62.92 billion USD.
  • Market reaction: Samsung’s shares reached a new record high in the first half of the trading day, before a pullback due to profit‑taking. The overall trend in the Korean market remained positive, supported by gains in major indices such as the KOSPI.

Market Context

Samsung’s performance is part of a broader positive movement in the Korean equity market. The KOSPI reached a record high on the day of the announcement, buoyed by strong results from Hyundai Motor and other domestic firms. Despite concerns over U.S. trade policy and geopolitical tensions, the semiconductor sector remained resilient. Samsung’s semiconductor revenue growth outstripped that of its peers, reinforcing the company’s leadership position in the global market.

Analyst Expectations

  • EPS: The consensus estimate for the fiscal year is 106.91 USD, while the consensus for the most recent quarter is 41.39 USD.
  • Revenue: Analysts anticipate a 15.76 % quarter‑on‑quarter increase to 62.92 billion USD, and a 7.1 % year‑on‑year rise to 228.01 billion USD.

Key Drivers

  1. Semiconductor Demand: Continued demand for memory chips and logic devices, especially in automotive and consumer electronics, supported higher margins and volumes.
  2. Operational Efficiency: Samsung’s ongoing cost‑control measures and production scaling contributed to improved profitability.
  3. Global Supply Chain Dynamics: Despite supply‑chain disruptions affecting the industry, Samsung’s diversified manufacturing footprint allowed it to maintain production levels.

Summary

Samsung Electronics’ announcement of a substantial increase in operating profit, largely driven by its semiconductor business, underscores the company’s dominant position in the technology hardware sector. With strong quarterly and annual growth expectations, Samsung’s financial performance remains a key indicator for the broader Korean and global technology markets.