Samsung Q1 Profit Up 1.5%, Chip Division Plunges 42%

Samsung Electronics released its financial results for Q1 on April 30, reporting revenue and operating profit that exceeded analysts' expectations. The company's solid performance was driven by robust sales of its flagship Galaxy S25 smartphone and a recovery in its memory semiconductor business.

Samsung achieved record-breaking Q1 revenue of KRW 79.1 trillion, marking a 10% year-over-year increase, surpassing analysts' forecast of KRW 78.1 trillion. Operating profit reached KRW 6.7 trillion, up 1.5% from the previous year, also beating the estimated KRW 6.4 trillion.

Both revenue and profit slightly exceeded the company's prior guidance of KRW 79 trillion and KRW 6.6 trillion, respectively. The increase in operating profit was attributed to strong demand for smartphones and general-purpose semiconductors, as customers accelerated purchases in response to concerns over U.S. tariffs. This helped offset underperformance in AI-related chip sales.

Although Samsung did not provide a specific earnings outlook for the current quarter, it acknowledged ongoing macroeconomic uncertainties caused by global trade tensions and slowing growth. The company noted that performance in the second half of the year could improve if these uncertainties ease.

In terms of business segments, Samsung's mobile and network division saw operating profit surge 23% to KRW 4.3 trillion — the highest in four years — thanks to AI-powered features in the latest Galaxy S flagship lineup. However, the semiconductor division posted an operating profit of KRW 1.1 trillion, down 42% year-over-year.

Looking ahead, Samsung expects continued strong demand for AI servers in the current quarter and plans to ramp up production of its advanced 12-layer HBM3E memory chips to support next-generation computing applications.