Samsung has kicked off 2026 with eye-catching preliminary results for Q4 2025, showing just how powerful the AI-driven memory boom has become for the company’s bottom line. With demand for advanced memory accelerating across the data center and AI hardware ecosystem, Samsung is reporting one of its strongest profit performances in years.
For the quarter, Samsung guided to revenue of about KRW 93 trillion (roughly $64.0 billion) and operating profit of around KRW 20 trillion (about $13.8 billion). That operating profit figure doesn’t just beat market expectations—it also surpasses Samsung’s previous high watermark from 2018, when it posted KRW 17.6 trillion in operating profit.
The momentum is even clearer when compared with the prior quarter. In Q3 2025, Samsung reported KRW 86.1 trillion in revenue and KRW 12.2 trillion in operating profit. Now, Q4 guidance implies a major step up, helped largely by stronger conditions in memory. On a year-over-year basis, Samsung’s outlook points to a 23% rise in revenue and nearly triple the operating profit, underscoring how quickly profitability can expand when memory pricing and high-value AI products move in the right direction.
A key storyline behind this surge is the market’s rapid shift toward high-bandwidth memory, the specialized DRAM used to feed data-hungry AI accelerators. As the industry transitions from HBM3E to next-generation HBM4, Samsung appears well-positioned to compete for more share—especially as leading AI chip platforms increase performance requirements and tighten supplier expectations.
According to industry tracking, new HBM4 specifications have been revised to push per-pin speed beyond prior targets, and that has ripple effects across the supply chain. Samsung is widely seen as having a strong technical footing here, using its 1 cnm process and advanced manufacturing approaches to drive higher transmission speeds for custom HBM4 solutions. If Samsung executes well as customers ramp next-gen AI hardware, this could translate into more orders and stronger margins—particularly tied to major AI ecosystem demand.
While memory is enjoying a tailwind, Samsung’s smartphone business is dealing with a very different set of pressures. Rising component and operating costs are reportedly forcing internal discussions around pricing for the upcoming Galaxy S26 lineup. In select markets, including South Korea, Samsung is said to be considering price increases in the range of KRW 44,000 to KRW 88,000 (about $30 to $60).
That would represent a notable shift in strategy. Samsung has largely avoided raising prices for its flagship Galaxy S series over the past three years, with the Galaxy S24 Ultra being a key exception. Holding the line on pricing has helped maintain momentum, and the Galaxy S25 series reportedly reached 3 million units in cumulative sales around two months faster than the previous generation.
What makes the rumored Galaxy S26 pricing approach especially interesting is the possibility of regional differences. Reports suggest Samsung may avoid price hikes in strategically important markets like the United States, potentially setting up a scenario where the Galaxy S26 could end up effectively cheaper in the US than in South Korea, depending on final pricing and local market conditions.
Taken together, Samsung’s early Q4 2025 numbers highlight a company being pulled in two directions: booming profitability from AI memory demand on one side, and tighter economics in its mobile division on the other. If the HBM4 transition continues to accelerate—and Samsung can secure more next-gen supply commitments—its memory-driven earnings strength could remain a major theme well into 2026.
