With tripled profits and notable revenue growth, Samsung surpassed earnings expectations, driven by rising global AI demand and a memory chip shortage. However, its smartphone sector faces challenges.
Samsung Electronics reported a 24% year-on-year surge in revenue and a substantial profit for the fourth quarter of 2025, tripling compared with the same period last year. The company’s earnings were driven by a memory chip shortage and strong demand for artificial intelligence (AI) servers.
The results exceeded analysts’ forecasts, with revenue reaching 93.8 trillion Korean won ($65.58 billion), and operating profit soaring to 20.1 trillion won.
Despite the positive results, Samsung’s share price initially rose by 2.58% before reversing direction and falling 1.54% in early trading on Thursday, January 29, 2026.
Samsung’s earnings report highlighted that its memory business, which benefitted from rising chip prices, played a significant role in its strong performance. The surge in demand for high-bandwidth memory (HBM), a key component for AI data centres, helped to set new revenue and profit records.
AI chip makers like NVIDIA have been scrambling for limited HBM supplies, leading to a chip shortage across the broader market.
However, the company cautioned that rising costs could affect its smartphone and display businesses going forward. Samsung’s mobile division posted weaker results in Q4, with operating profit falling by 9.5% year-on-year and by over 45% compared to the previous quarter. This decline was attributed to reduced consumer interest in new smartphone models and fierce market competition.
Looking ahead, Samsung expects continued growth in AI and server demand, particularly in its Device Solutions division. The company also plans to strengthen its AI smartphone offerings with the launch of the Galaxy S26 series in the first quarter of 2026, aiming to optimise resources and improve supply chain efficiency to address rising component costs.
In a more positive development, Samsung’s display business saw profits more than double in the fourth quarter, buoyed by strong sales of smartphone displays.
