Samsung Beats Estimates As 2025 Profitability Rises 33% On Chip Supercycle

 
Samsung Electronics reported a sharp rebound in profitability in 2025, with full-year operating profit jumping more than 33 percent on year to 43.6 trillion won ($30.5 billion), driven by a memory semiconductor supercycle fueled by strong demand and supply shortages that pushed up chip prices.
 
The company also said on Thursday that it will begin shipping its sixth-generation high bandwidth memory, HBM4, to key customers, including Nvidia, starting next month, as the product has entered the final verification stage with the U.S. AI chip giant.
 
The operating profit figure marked the fourth-highest annual result in Samsung’s history and closely matched the market consensus of 43.4 trillion won compiled by FnGuide. Annual sales, meanwhile, climbed to a record 333.61 trillion won, up 10.88 percent from a year earlier, exceeding analysts’ expectations of 329.1 trillion won. Net profit surged 31.23 percent to 45.21 trillion won, also beating the market forecast of 39.8 trillion won.
 
The company delivered a major earnings surprise for the fourth quarter of 2025, posting record-high figures for both operating profit and revenue. Quarterly operating profit soared 209.17 percent year on year to 20.1 trillion won, far surpassing the consensus estimate of 16.71 trillion won. Sales rose 23.82 percent to 93.84 trillion won, topping the forecast of 89.5 trillion won. Net profit more than doubled, rising 153.3 percent to 19.64 trillion won, well above expectations of 15.62 trillion won.
 
By business segment, the semiconductor division led with an operating profit of 16.4 trillion won, a dramatic increase of 465.5 percent from a year earlier. Samsung expects tight supply conditions across its memory portfolio — including HBM, conventional dynamic random access memory, or DRAM, and NAND — to continue throughout the year and said it is receiving requests from customers for long-term supply contracts, which it plans to pursue selectively.
 
The company expects to deliver samples of its next-generation HBM4E to customers in the middle of the year. HBM production for 2025 is already fully booked, and Samsung anticipates HBM revenue will more than triple in 2026 compared to the previous year.
 
In contrast, the mobile and network business posted an operating profit of 1.3 trillion won, down 43.48 percent year on year, as smartphone sales declined following the fading impact of new model launches. The consumer electronics division, which includes TVs and home appliances, swung to an operating loss of 600 billion won due to seasonal weakness and the impact of global tariffs.
 
Samsung Display reported an operating profit of 2 trillion won, up 122.22 percent on year, supported by strong smartphone demand and increased sales for information technology and automotive displays. Harman, Samsung’s automotive electronics subsidiary, saw operating profit fall 25 percent to 300 billion won, though it plans to expand sales of automotive products such as digital cockpits and car audio systems while maintaining growth in its audio business.
 
Samsung Electronics shares closed at 160,700 won on Thursday, down 1.05 percent from the previous trading session.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]