Samsung and SK hynix report record-high profits thanks to the memory crisis

Samsung's earnings report for the fourth quarter of 2025 is out now, with the company pulling 93.8 trillion KRW ($65.66 billion USD) in revenue and an operating profit of 20.1 trillion KRW ($14.07 billion USD). This profit figure is their highest ever for a single quarter and lines up perfectly with the earnings guidance the Korean tech giant released early this month.

The Device Solutions (DS) Division was the main engine behind this growth. This division brought in 44.0 trillion KRW ($30.8 billion USD) in revenue and a massive operating profit of 16.4 trillion KRW ($11.48 billion USD). Sales jumped 33% compared to the previous quarter.

The Memory Business specifically hit an all-time high for revenue and profit. This happened because almost everyone, including Microsoft, needs high-bandwidth memory (HBM) and server DDR5 chips right now. Prices are surging across the board, and semiconductor companies like Samsung are cashing in on that demand by selling high-value products like enterprise SSDs.

On a related note, rival SK Hynix also posted record-breaking numbers for FY2025, pulling in 97.15 trillion KRW ($68.13 billion) in revenue and 47.21 trillion KRW ($33 billion) in operating profit, with memory products doing most of the heavy lifting.

Like Samsung, the company says strong demand for HBM, server DRAM, and high-value NAND pushed both prices and margins higher, especially as hyperscalers and AI firms scramble to secure supply.

Samsung's DS Division expects demand for AI and servers to keep climbing well into the first quarter of 2026. Management says it will focus on profitability by pushing high-performance chips rather than chasing volume on lower-end parts.

It explicitly stated that the aim is to "lead the AI era with product competitiveness amid a rapidly growing demand environment" by ramping up sales of HBM4 and specialized SSDs. The Foundry Business is also moving forward as it started mass production of its first-generation 2nm products.

The Device eXperience (DX) Division didn't have the same luck as the DS Division, with revenue dropping 8% compared to the last quarter. Samsung attributes this slide to "reduced launch effects" from new smartphone models and intense market competition.

The Mobile eXperience (MX) team specifically saw smartphone sales dip as the hype from the earlier foldable launches faded. However, the company is banking on the upcoming Galaxy S26 series to turn things around in Q1 2026 with new Agentic AI features.

Samsung Display (SDC) managed 9.5 trillion KRW ($6.65 billion USD) in revenue even as smartphone demand softened a bit. Harman also performed well with 4.6 trillion KRW ($3.22 billion USD) in revenue, thanks to strong sales of car audio systems in Europe.

Interestingly, the Digital Appliances business is looking to grow its HVAC sales after acquiring FläktGroup. You can check out the full report here.

Source

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Posted Thursday 29 January 2026 at 5:51 pm AEST (my time).

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