Photograph illustration exhibiting the Samsung Group firm emblem displayed on a smartphone display.
Sopa Pictures | Lightrocket | Getty Pictures
Samsung Electronics’ working revenue and income beat analysts’ estimates Wednesday, as gross sales of its flagship Galaxy S25 smartphones in addition to reminiscence chips rose.
The South Korean firm posted a document quarterly income, up 10% from a yr earlier, whereas its first-quarter working revenue climbed 1.5%.
Listed below are Samsung’s first-quarter outcomes in contrast with LSEG SmartEstimates, that are weighted towards forecasts from analysts who’re extra constantly correct:
- Income: 79.1 trillion Korean received ($55.4 billion) vs. 78.1 trillion Korean received
- Working revenue: 6.7 trillion Korean received vs. 6.4 trillion Korean received
First-quarter income marginally topped Samsung’s forecast of 79 trillion Korean received, whereas working revenue additionally got here in increased than the corporate’s expectations of 6.6 trillion Korean received.
Samsung is a number one producer of reminiscence chips, that are utilized in gadgets comparable to laptops and servers, and can be the world’s second-largest smartphone maker.
The corporate flagged macroeconomic uncertainties as a result of commerce tensions and a slowdown in international progress. Samsung expects efficiency to enhance within the second half of the yr, “assuming that the uncertainties are diminished.”
South Korea-listed shares of Samsung Electronics had been buying and selling down about 0.4%.
Reminiscence enterprise
Samsung Electronics’ chip enterprise posted an working revenue of 1.1 trillion Korean received within the first quarter, down from the earlier quarter and the identical interval final yr, although income rose yr on yr.
“For the Reminiscence Enterprise, income was pushed by expanded server DRAM gross sales and the addressing of further NAND demand amid a perceived bottoming out of the market value,” the corporate stated.
DRAM and NAND are kinds of semiconductor reminiscence present in PCs, workstations and servers. Demand for such reminiscence chips has surged on the again of the unreal intelligence growth.
Nonetheless, general earnings had been impacted by a lower in common promoting costs and gross sales impacted by U.S. export controls on AI chips, Samsung stated.
Lengthy a pacesetter in reminiscence chips, Samsung has not too long ago been falling behind its native competitor, SK Hynix, which has been higher positioned to profit from AI improvement.
A report from Counterpoint Analysis earlier this month stated that SK Hynix had overtaken Samsung in general DRAM market income for the primary time, with a 36% international market share as in comparison with Samsung’s 34%.
The report added that this had resulted, partially, from SK Hynix’s dominance in excessive bandwidth reminiscence or HBM — a sort of DRAM utilized in synthetic intelligence servers through which chips are vertically stacked to save lots of house and cut back energy consumption.
SK Hynix final week topped quarterly income and working revenue estimates on robust demand for its excessive bandwidth reminiscence choices.
In its first quarter earnings, Samsung stated it skilled deferred HBM demand from clients anticipating the rollout of its newest HBM merchandise.
For the present quarter, Samsung anticipates continued robust demand for AI servers and can search to strengthen its place in high-value-added merchandise, together with HBM.
Smartphones
Samsung’s cell expertise and networks companies, tasked with creating and promoting smartphones, tablets, wearables and different gadgets, reported a improve in gross sales and revenue from the prior yr and quarter.
The corporate credited the expansion to the launch of its newest Galaxy S25 smartphone sequence, which incorporates AI options.
Within the present quarter, the corporate plans to maintain gross sales by way of the launch of a brand new Galaxy S25 Edge smartphone and stated it should proceed to develop the AI-powered options provided on its smartphone lineup.
Correction: This story has been revised to replicate that working revenue within the chip phase declined each on a quarter-on-quarter in addition to year-on-year foundation.
