Samsung Electronics Projects Record 57.2 Trillion Won First-Quarter Profit

Samsung Electronics projected a record preliminary operating profit of 57.2 trillion won (approximately $38 billion) for the first quarter of 2026. This figure represents a more than eightfold increase over the previous year and surpasses the company's total operating profit for the entire previous year. Revenue for the period also hit a record high of 133 trillion won, a 68 percent increase year-over-year.

The surge is primarily driven by a semiconductor super cycle and aggressive AI investments from firms including Google, Microsoft, Meta, and Amazon. Demand for high-bandwidth memory (HBM) chips used in data centers tightened global supplies and pushed prices higher. Samsung has expanded its supply of sixth-generation HBM4 chips to customers such as Nvidia and AMD, and is utilizing 4-nanometer technology to manufacture Groq 3 processors.

Beyond semiconductors, the company secured a three-year exclusive contract to supply foldable displays for Apple's upcoming foldable iPhone. While the Galaxy S26 series supported mobile revenue, rising production costs pressured the mobile and TV divisions. Financial institutions, including Citigroup and KB Securities, have raised annual profit forecasts to exceed 300 trillion won, with some projections suggesting Samsung could become the world's most profitable company by 2027.

Despite these gains, the company faces headwinds from rising energy costs and potential material shortages, such as helium, linked to a U.S.-Israeli military campaign against Iran. Samsung is scheduled to release detailed final earnings results on April 30, 2026.