Samsung Electronics Releases Fourth Quarter and FY2025 Earnings Report
Samsung Electronics announced its financial results for the fourth quarter and full fiscal year 2025, highlighting historic highs in quarterly revenue and operating profit, as well as solid long-term growth momentum driven by artificial intelligence (AI), advanced semiconductors, and premium consumer devices.
The company closed the fourth quarter of 2025 with consolidated revenue of KRW 93.8 trillion, marking the highest quarterly revenue in its history and representing a 9% increase compared to the previous quarter. Operating profit also reached an unprecedented level of KRW 20.1 trillion, underscoring the effectiveness of Samsung’s strategy to focus on high-value products, technological innovation, and operational efficiency.
For the full fiscal year 2025, Samsung reported KRW 333.6 trillion in total revenue and KRW 43.6 trillion in operating profit. These results reflect a strong recovery in semiconductor demand, expanding AI-related opportunities, and steady performance across its diversified business portfolio, including mobile devices, displays, consumer electronics, and automotive solutions.
Beyond financial performance, Samsung significantly increased its research and development (R&D) investment, spending KRW 10.9 trillion in the fourth quarter alone and reaching a record KRW 37.7 trillion for the full year. This aggressive investment underscores Samsung’s commitment to sustaining long-term competitiveness in AI, next-generation semiconductors, and advanced device technologies.
Diverging Trends Across Divisions: Strong Semiconductor Growth and Competitive Pressure in Devices
Samsung’s two major business divisions—Device Solutions (DS) and Device eXperience (DX)—displayed contrasting performance trends during the quarter.
The Device Solutions Division, which encompasses Samsung’s semiconductor businesses, recorded a robust quarter-on-quarter revenue increase of 33%. The growth was largely driven by record-breaking performance in the Memory Business, fueled by strong demand for high-bandwidth memory (HBM) and other high-value semiconductor products. Rising market prices and expanding AI-driven workloads further amplified revenue and profitability.
In contrast, the Device eXperience Division experienced an 8% sequential decline in revenue. This decrease was attributed to the fading impact of new smartphone launches and intensifying competition in global consumer electronics markets. Despite this short-term slowdown, Samsung emphasized its long-term strategy to strengthen AI integration across devices and services to drive sustainable growth.
Semiconductor Business: The Core Engine of Samsung’s Growth
Samsung’s semiconductor operations emerged as the primary growth engine in Q4 2025. The Device Solutions Division generated KRW 44.0 trillion in consolidated revenue and KRW 16.4 trillion in operating profit during the quarter, highlighting the critical role of semiconductors in Samsung’s overall performance.
The Memory Business delivered record-high quarterly revenue and operating profit despite constrained supply conditions. Samsung successfully capitalized on strong demand for conventional DRAM while accelerating sales of high-end products such as HBM, server DDR5, and enterprise solid-state drives (SSDs). By shifting its product mix toward premium, high-margin solutions, the company significantly improved profitability.
Looking ahead to Q1 2026, Samsung expects the ongoing global AI boom to sustain favorable market conditions across the memory industry. The company plans to further prioritize high-value products tailored for AI workloads, data centers, and advanced computing applications.
A key milestone in early 2026 will be the commencement of HBM4 shipments, including products offering industry-leading performance of up to 11.7 Gbps. Samsung aims to reclaim leadership in the high-end HBM market by leveraging technological innovation and manufacturing excellence.
Throughout 2026, Samsung’s Memory Business intends to deepen strategic partnerships with customers while expanding its portfolio of AI-related products, including DDR5, SOCAMM2, and GDDR7. The company also plans to proactively address growing NAND demand by scaling up sales of high-performance triple-level cell (TLC) products for inference workloads and enterprise applications.
System LSI Business: Navigating Cyclical Demand with Innovation
The System LSI Business experienced a decline in earnings during Q4 2025 due to seasonal demand softness and adjustments in key customer product schedules. However, Samsung achieved notable progress in image sensor technology, with revenue supported by new 200-megapixel and 50-megapixel large-pixel sensors.
Samsung expects earnings to recover in Q1 2026 as new product launches gain momentum. The company plans to reinforce its leadership in image sensors by expanding its 200MP lineup and enhancing performance through advanced technologies.
In the broader 2026 outlook, the System LSI Business will focus on improving profitability by expanding sales of differentiated system-on-chip (SoC) solutions and stabilizing production yields. Samsung also aims to strengthen competitiveness in fine-pixel sensor technology while sustaining its leadership through Nanoprism technology, which enhances light sensitivity and imaging quality.
Foundry Business: Advancing Next-Generation Process Nodes
Samsung’s Foundry Business reported increased revenue in Q4 2025, supported by strong demand from customers across major markets. However, profitability gains were partially offset by provisional costs associated with advanced manufacturing processes.
During the quarter, Samsung commenced mass production of its first-generation 2-nanometer (2nm) chips and began shipping 4nm HBM base-die products, marking significant milestones in its advanced node roadmap.
For Q1 2026, Samsung anticipates a sequential revenue decline due to seasonal demand patterns, although order volumes are expected to rise, driven primarily by high-performance computing (HPC) and mobile customers.
Over the full year 2026, the Foundry Business is targeting double-digit revenue growth and improved profitability through expanded production of advanced nodes. Samsung plans to ramp up second-generation 2nm manufacturing and prepare for the production of optimized 4nm processes focused on performance and power efficiency.
To further enhance competitiveness, Samsung will integrate logic, memory, and advanced packaging technologies to deliver optimized solutions for customers, reinforcing its position in the global semiconductor ecosystem.
Samsung Display Corporation: Sustaining Leadership Through Differentiated Technology
Samsung Display Corporation (SDC) delivered solid results in Q4 2025, reporting KRW 9.5 trillion in consolidated revenue and KRW 2.0 trillion in operating profit.
In the small and medium display segment, Samsung benefited from stable supply and rising smartphone demand from major customers. Growth in IT and automotive display applications also contributed to improved earnings. Meanwhile, the large display business experienced revenue growth driven by strong year-end demand.
Looking ahead to Q1 2026, Samsung anticipates softer smartphone demand and plans to offset this by expanding sales through timely development and supply of displays for upcoming flagship devices. For large displays, the company aims to respond proactively to new QD-OLED product launches and broaden its market reach.
Throughout 2026, Samsung Display will continue to strengthen its leadership in smartphone displays through differentiated technologies. The company also intends to maintain its premium position in the television market with high-brightness products and drive monitor sales growth through superior performance capabilities.
Mobile eXperience and Networks: Accelerating AI-Driven Innovation
Samsung’s Mobile eXperience (MX) and Networks Businesses generated KRW 29.3 trillion in consolidated revenue and KRW 1.9 trillion in operating profit in Q4 2025.
The MX Business achieved double-digit annual profit in 2025, supported by strong flagship smartphone sales and stable demand for tablets and wearables. However, smartphone shipments declined in Q4 as the impact of new model launches normalized.
In Q1 2026, Samsung plans to reinforce its leadership in AI-powered smartphones with the launch of the Galaxy S26 series, featuring advanced agentic AI capabilities. The company aims to sustain profitability by expanding flagship sales, optimizing resources, and strengthening supply chain stability amid global market uncertainties.
Looking across 2026, Samsung intends to consolidate its leadership in mobile AI by delivering next-generation AI experiences and introducing innovative device designs with slimmer and lighter form factors. The company will also pursue growth across multiple segments by leveraging AI-driven products and exploring new markets, while maintaining a strong focus on cost efficiency and profitability.
Networks Business Expands Market Presence
The Networks Business reported improved earnings in Q4 2025, supported by increased sales in North America. In Q1 2026, Samsung aims to drive revenue growth through new orders despite ongoing investment headwinds in the global telecommunications industry.
Over the course of 2026, Samsung plans to expand its presence in new markets by leveraging its leadership in virtualized radio access networks (vRAN) and open radio access networks (ORAN). The company will also focus on securing profitability through rigorous cost optimization and operational efficiency.
Consumer Electronics and Harman: Enhancing Customer Experience Through Differentiation
Samsung’s Visual Display (VD) and Digital Appliances (DA) Businesses reported KRW 14.8 trillion in consolidated revenue and an operating loss of KRW 0.6 trillion in Q4 2025.
The VD Business recorded revenue growth driven by strong sales of premium Neo QLED and OLED TVs, supported by effective responses to peak seasonal demand. However, intense market competition continued to pressure profitability.
In Q1 2026, Samsung plans to focus on revenue growth and margin improvement through enhanced product lineups, including Micro RGB TVs and high-value offerings such as Super Big TVs, QLEDs, and OLED models.
Over the full year 2026, the VD Business aims to capitalize on replacement demand linked to major global sporting events. Samsung will also leverage differentiated AI-based customer experiences to strengthen its leadership in the television market.
The DA Business faced a decline in earnings in Q4 2025 due to weak seasonal demand for air conditioners and shifting global trade conditions.
In Q1 2026, Samsung expects earnings to improve with the expansion of AI-enabled appliances and a seasonal recovery in air conditioner demand. Throughout 2026, the company plans to accelerate the adoption of AI products, expand growth pillars in business-to-business (B2B), direct-to-consumer (D2C), and subscription-based models, and enhance HVAC capabilities through synergies with FläktGroup, following Samsung’s acquisition of the European HVAC company.
Harman: Expanding Automotive and Audio Leadership
Harman, Samsung’s subsidiary specializing in automotive and audio solutions, reported KRW 4.6 trillion in consolidated revenue and KRW 0.3 trillion in operating profit in Q4 2025.
During the quarter, Harman achieved revenue growth by expanding automotive product supply to European original equipment manufacturers (OEMs) and launching new portable and true wireless stereo (TWS) audio products. These initiatives allowed the company to capitalize on peak seasonal demand and strengthen its brand portfolio.
In Q1 2026, Harman aims to further expand automotive sales, particularly in digital cockpit and car audio solutions, while sustaining growth in consumer audio offerings.
Looking ahead to 2026, Harman plans to strengthen its high-growth automotive business and secure new orders by acquiring advanced driver assistance system (ADAS) capabilities. In the audio segment, the company will continue to expand premium product sales supported by a reinforced brand portfolio.
Positioning for the AI Era
Samsung’s Q4 and FY2025 results reflect not only strong financial performance but also a strategic transformation toward AI-driven growth. Across semiconductors, mobile devices, displays, consumer electronics, and automotive solutions, the company is aligning its product roadmap with the accelerating demand for AI computing, data centers, and intelligent devices.
The Device Solutions Division is positioned to benefit from structural growth in AI and server markets, supported by expanding demand for high-performance memory and advanced foundry technologies. Meanwhile, the Device eXperience Division is focused on embedding AI capabilities across the entire device ecosystem, from smartphones and TVs to appliances and services.
Samsung’s record-level R&D investment highlights its commitment to long-term innovation and technological leadership. By prioritizing high-value products, strengthening customer partnerships, and integrating AI across its portfolio, Samsung aims to maintain its competitive edge in an increasingly complex global technology landscape.
Building Momentum for Sustainable Growth
Samsung Electronics’ record-breaking performance in Q4 2025 and robust full-year results demonstrate the company’s ability to navigate cyclical market dynamics while capitalizing on emerging opportunities in AI, advanced semiconductors, and premium devices.
As the company enters 2026, it faces both challenges and opportunities—from intensifying global competition and supply chain uncertainties to unprecedented growth in AI-driven demand. However, with a strong technological foundation, diversified business portfolio, and aggressive innovation strategy, Samsung is well-positioned to sustain growth and reinforce its leadership in the global technology industry.
By accelerating its transformation into an AI-centric technology leader, Samsung aims not only to deliver financial growth but also to redefine the future of computing, connectivity, and intelligent devices.
Source Link:https://news.samsung.com/
