Samsung Q4 Earnings Soar Semiconductor Profit 465%

On January 29, South Korea's tech giant Samsung Electronics released its Q4 and full-year 2025 financial results, showing record-breaking growth fueled by surging AI demand. The ongoing shortage of memory chips and soaring prices drove the company's Device Solutions (DS) division to a staggering 46.2% revenue increase and a 465.5% jump in operating profit in the fourth quarter, pushing Samsung's overall revenue and operating profit to all-time highs.

In Q4 2025, Samsung reported revenue of KRW 93.8 trillion, up 24% year-on-year and 9% quarter-on-quarter, marking a new record. Operating profit reached KRW 20.1 trillion, up 209% year-on-year and 64.8% quarter-on-quarter. Gross profit rose to KRW 44.3 trillion, a 55.4% increase from the previous year, while net profit surged 151.3% year-on-year to KRW 19.6 trillion. For the full year, Samsung posted KRW 333.6 trillion in revenue, up 11% from 2024, with operating profit of KRW 43.6 trillion and net profit of KRW 45.2 trillion, up 33% and 31%, respectively.

Looking ahead to Q1 2026, Samsung expects continued growth in AI and server demand to create further structural growth opportunities, with profitability driven by high-performance products. The company also plans to accelerate production of its second-generation 2nm chips, prepare 4nm processes optimized for performance and efficiency, and integrate logic, memory, and advanced packaging technologies to deliver more optimized solutions.

Breaking down its operations, Samsung's DS division recorded KRW 44.0 trillion in revenue for Q4 2025, up 46.2% year-on-year and 32.9% quarter-on-quarter, with operating profit soaring 465.5% to KRW 16.4 trillion. For the full year, DS posted revenue of KRW 130.1 trillion, up 17%, and operating profit of KRW 24.9 trillion, up 64.9%. Memory chip sales drove much of this growth, with Q4 revenue hitting KRW 37.1 trillion, up 61.3% year-on-year, and full-year revenue at KRW 104.1 trillion, a 23.2% increase.

Samsung's System LSI business saw a decline in Q4 profitability due to seasonal demand softening and shifts in client product schedules, although revenue from image sensors grew thanks to new 200MP and 50MP high-resolution offerings. With upcoming product launches, the company expects earnings in this segment to recover in Q1 2026, while the expansion of the 200MP line is set to reinforce its market leadership in imaging technology.

In wafer foundry, strong demand from major markets like the U.S. and China supported overall revenue growth in Q4, though profit gains were limited by projected costs. The division also began mass production of first-generation 2nm chips and started shipping 4nm HBM-based components.

Samsung's SDC division posted KRW 9.5 trillion in Q4 revenue, up 17% both year-on-year and quarter-on-quarter, with operating profit doubling to KRW 2.0 trillion. Meanwhile, the MX and network segment saw Q4 revenue of KRW 29.3 trillion, up 13% year-on-year but down 14% from the previous quarter, with operating profit slipping 9.5% year-on-year. The VD and DA segment recorded revenue of KRW 14.8 trillion, a 2% year-on-year increase, but operating losses widened to KRW 0.6 trillion.

Samsung noted that VD revenue growth in Q4 was supported by strong sales of high-end Neo QLED and OLED products and effective management of seasonal demand peaks, though competitive pressure continues to weigh on profitability.