Samsung Electronics, the world's largest memory chipmaker, released preliminary third-quarter results for 2026 on October 8: operating profit for July through September came in at 107.4 trillion won (about $80.17 billion), up nearly eightfold from 12.17 trillion won a year earlier. Revenue rose 127% year-on-year to 195 trillion won, against 86.06 trillion won in the same period last year.

It is the first time Samsung's operating profit has crossed the 100 trillion won line, and it makes Samsung the first South Korean company to clear that threshold in a single quarter.

But the strongest quarter in the company's history, driven by AI-related memory demand, is also pushing cost pressure back onto Samsung's own consumer electronics business.

Beating the Mark: Above LSEG's Estimate, Still Below Bloomberg's Consensus

According to the preliminary figures, Samsung Electronics posted operating profit of 107.4 trillion won, or roughly $80.17 billion, for July through September, up nearly eightfold from 12.17 trillion won a year earlier.

That came in above the 106.1 trillion won projected by LSEG SmartEstimate.

It is also the first time Samsung's operating profit has broken through the 100 trillion won mark, and the company's fourth consecutive quarter of record operating profit.

Revenue Doubles: 195 Trillion Won, Up 127% Year-on-Year

The preliminary results also showed third-quarter revenue up 127% year-on-year at 195 trillion won, compared with 86.06 trillion won in the same period last year.

Memory chip prices have continued to climb sharply, driven by tight supply of conventional DRAM and NAND alongside strong demand for high-bandwidth memory (HBM), which AI applications need to handle vast volumes of data. Memory chips are expected to be the main contributor to Samsung's earnings growth.

Samsung is expected to publish full results later this month, including a breakdown of earnings by business unit.

Growth Engine: HBM Shipments Up Nearly 50% in One Quarter

Analysts say the results underscore how far the surge in AI infrastructure demand has outpaced growth in memory chip supply, and that the gap is expected to persist into 2027.

As AI-related demand absorbs more and more of the world's memory capacity, supply could fall even further behind demand in 2027.

On the product mix, Douglas Kim, an analyst at Douglas Research Advisory, estimates that Samsung's HBM shipments rose nearly 50% quarter-on-quarter in the third quarter. As one of the world's major HBM suppliers, Samsung is working to close the gap in that market.

Blowback: Rising Prices Lift the Cost of Samsung's Own Phones

The memory boom is creating problems elsewhere in Samsung, particularly for its smartphone and consumer electronics divisions, which are under heavy pressure from rising component costs.

Higher memory prices benefit Samsung's semiconductor arm, but they also raise production costs for its own smartphones and other electronics, squeezing margins in those units.

A Look at the Prior Quarter: Operating Profit Had Already Soared 1,814% Year-on-Year

Samsung's second-quarter results, reported in late July, showed sharp gains in both revenue and profit: revenue of about 171.5 trillion won, up 130% year-on-year; operating profit of about 89.5 trillion won, up 1,814%; and net profit of about 71.62 trillion won, up 1,299.9%.

By comparison, this quarter's 107.4 trillion won in operating profit represents further growth on top of an already extremely high base.

Peer Evidence: Micron's Data Center Revenue Up Roughly Tenfold Year-on-Year

Last week, Samsung's US rival Micron Technology also reported results, posting net profit of $37.7 billion, or $32.87 per share, for the fourth quarter of fiscal 2026, which ended September 3. That is more than a tenfold increase from $3.2 billion, or $2.83 per share, a year earlier.

Micron's fourth-quarter revenue jumped to $54.23 billion from $11.32 billion a year earlier, beating analyst expectations of $51.33 billion. Its core data center business generated $18 billion in revenue, up about 56% from the prior quarter and roughly 1,042% year-on-year.

Looking further out, Micron expects memory and storage supply and demand to be far tighter in fiscal 2027 and 2028 than in 2026. The company said it has signed 26 long-term supply agreements with customers, up from 16 in June, with total financial commitments of $32 billion. More than 75% of its 2027 capacity is already committed to customers, and most current negotiations with customers now center on 2028.