TLDR
- Samsung Electronics (005930) stock fell more than 5% in Seoul on Thursday morning despite record results.
- Q3 operating profit hit 107.4 trillion won ($80.5 billion), up more than 780% from a year ago.
- HBM4 sales more than tripled from the prior quarter, and Samsung says its 2027 HBM supply is sold out.
- The chip division missed operating profit expectations, according to Bloomberg News.
- Samsung plans to return up to 110 trillion won to shareholders this year.
Samsung Electronics (005930) stock fell more than 5% in Seoul on Thursday morning, even after the company posted record quarterly profit. Investors focused on a miss in the chip divisionās operating profit versus expectations, according to Bloomberg News.
Samsung Electronics Co., Ltd., BC94.L
In London, the depositary receipts (0593q) were quoted at $3,430, down $125 or 3.52%. One report put the earlier price at $3,555, so the quotes do not fully line up.
July-September operating profit reached 107.4 trillion won, up more than 780% from a year earlier. Samsung says it is the first tech company to report a quarterly operating profit above 100 trillion won.
Net profit rose more than 510% to 75.1 trillion won. Sales came in at 195.3 trillion won, up 14% from the prior quarter.
Operating margin improved to 55% from 52%. Earnings per common share were 11,462 won.
Memory Chips Lead the Way
Memory drove the quarter. Samsung said strong server demand pushed prices higher across all applications.
HBM4 sales more than tripled from the previous quarter and made up 60% of total HBM sales. The company says its 2027 HBM supply is already sold out at agreed prices.
Chief financial officer Park Soon-cheol expects āunprecedented growth in memory demand in 2027.ā He also warned that adding supply quickly will be hard.
In foundry, Samsung will start mass production of mobile chips on its second-generation 2nm process in the fourth quarter. It expects double-digit revenue growth and is expanding capacity in Korea and Taylor, Texas.
Not every unit had a good quarter. Samsung expects a tougher 2027 for mobile, and weaker exchange rates cut earnings by about 10 trillion won.
Dilin Wu of Pepperstone called the results a reminder that the AI memory boom is āstill very real.ā Still, she said investors want to know whether there is āanother legā to the upcycle or whether peak earnings are near.
Payouts and Spending
Samsung plans to return up to 110 trillion won to shareholders this year. That includes 30 trillion won in cash dividends.
SK hynix announced a 60 trillion won return a day earlier. So record profit, and a falling stock. That is the market this week.
Capital spending is climbing fast. Q3 capex was 29 trillion won, and full-year guidance is 84.4 trillion won, up 31.7 trillion won from 2025.
Samsung stock has slid from its June record highs on worries about US tech firmsā AI spending. Kim Dong-won of KB Securities said record profits and undervaluation exist side by side.
Samsung expects to finalize a new shareholder return policy in January 2027. It has paid dividends for 34 straight years.
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