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Business Overview and Performance

The DS (semiconductor) division comprises memory (DRAM/NAND), system semiconductors, and foundry, and posted Q1 2026 operating profit of KRW 53.7 trillion, roughly 94% of total operating profit (KRW 57.2 trillion). The DX division comprises MX (Mobile) and VD (TV), among others; revenue and operating profit grew on a higher sales mix of flagship devices such as the Galaxy S26 Ultra and strong sales of premium/large-screen TVs (Samsung Newsroom Korea, Q1 2026 earnings release). The Q2 2026 figures are preliminary results (A, unconfirmed) prepared under Korean IFRS, with segment-level details to be disclosed at the confirmed-earnings conference call scheduled for 2026-07-30.

[Not available] Exact segment revenue share (%), standalone Harman division results, Q2 2026 detailed segment P/L

5-Year Financial Trend

Operating profit plunged to KRW 6.57 trillion in 2023 amid the memory semiconductor downcycle, then rebounded from 2024 through 2026 alongside recovering demand for AI-server memory (including HBM). The first half of 2026 delivered record quarterly operating profit (KRW 57.2 trillion in Q1, KRW 89.4 trillion preliminary in Q2). [Not available] Five-year trend of total assets, total liabilities, and total equity (requires cross-check against original business reports)

Peer Comparison

DRAM revenue market share, as of Q1 2026 (market-research-firm aggregated report, verification needed) · [Not available] NAND market share

Media reports citing a single point in July 2026 (intraday, exact date not available) stated that SK hynix's market capitalization overtook Samsung Electronics, ending Samsung's 25-year-7-month reign as the KOSPI's largest company by market cap (MBC News). The timing of that reported figure differs from this report's confirmed market cap (KRW 1,559.8 trillion, based on the 2026-07-21 close), so a direct comparison should be made with caution. In foundry, TSMC is reported to be maintaining high utilization at advanced nodes, while Samsung Foundry is reported to be targeting a 60-70% yield range by year-end on its 2nm process (Busan Ilbo, characterized as an unverified estimate). [Not available] TSMC's exact Q1 operating profit figure, primary-source figures for foundry market share

Valuation

Consensus-based multiples such as P/E, P/B, and EV/EBITDA (e.g., P/B figures of 2.6x, 5.32x, and 3.81x have each been found in different sources) show large variance depending on the outlet and reference date, and have not yet been cross-checked against the primary source (DART financial statements), so they are not included in this report. [Not available] TTM P/E based on actual (A) results, P/B based on shareholders' equity

Supply and Demand (Order Flow)

Official KRX investor-type net-buying data was not obtained at the time of research because login access was not set up. On the 2026-07-21 rally day, multiple media outlets reported combined net buying by foreign investors and institutions alongside net selling by individuals, but the reported net-buying amounts diverged significantly across outlets (e.g., foreign net buying reported anywhere from KRW 234.6 billion to KRW 595.9 billion), so a single confirmed figure cannot be presented.

Down continuously from 52.33% at year-end 2025 to the mid-46% range by July 2026 (the lowest level since the 2009 financial crisis). [Not available] Cumulative net buying by investor type within the window, short-sale ratio (%) and balance time series, foreign ownership limit utilization rate, margin loan balance

Governance

The table above reflects figures from the FY2025 year-end (2025-12-31) business report (DART, filing no. 20260310002820); per the most recent large-holding report as of 2026-07-10, the combined stake of the specially related persons group has narrowed slightly to 19.69% (mainly due to disposal of trust shares). The board of directors consists of 9 members (3 inside directors, 6 outside directors; 66.7% outside directors), and the board chair, outside director Shin Je-yoon, concurrently serves as chair of the audit committee. [Not available] List of equity stakes in Samsung Electronics affiliates (subsidiaries and sub-subsidiaries), detailed stakes of individual related parties of Samsung C&T

Macro Environment

Rising memory prices are cited as a key driver of Q2 2026 results — TrendForce reported on 2026-07-03 that it expected Q3 2026 DRAM contract prices to rise 13-18% quarter-over-quarter and NAND prices to rise 10-15%. The KRW/USD exchange rate (around KRW 1,473) remains at a level favorable to export-heavy Samsung Electronics, though some analysts note that the Bank of Korea's rate hike (to 2.75%) could partly offset the FX-hedging benefit by creating upward pressure on the won. The U.S. Federal Reserve held its policy rate at 3.50-3.75% for a fourth consecutive meeting at its June 2026 FOMC meeting, maintaining a hawkish stance. [Not available] Samsung Electronics' own FX hedge ratio, U.S. Dollar Index (DXY) value as of the reference date

News Timeline

• 2026-07-21 · Korea Customs Service: semiconductor exports for July 1-20 reached USD 22.113 billion (YoY +180.6%), with the semiconductor share of total exports rising from 21.9% to 40.3% (Korea Customs Service statistics)
• 2026-07-21 · KOSPI closed at 6,747.95, up 3.56% from the previous day (Financial News, among others)
• 2026-07-19 · Samsung Electronics unveiled invitations for the Galaxy Unpacked event in London on 2026-07-22 — the Galaxy Z Fold8, Fold8 Ultra, and Z Flip8 are expected to be unveiled (Samsung official community)
• 2026-07-07 · Q2 2026 preliminary earnings announced: revenue KRW 171 trillion, operating profit KRW 89.4 trillion; the stock plunged 6.92% on the announcement day (Samsung Newsroom Korea, Seoul Shinmun, among others)
• 2026-07-03 · Report that Samsung Electronics is negotiating to raise Q3 DRAM average selling prices by up to 20% (ZDNet Korea)
• 2026-05-20 · Samsung Electronics labor and management signed a tentative agreement in the 2026 wage negotiations (a dramatic settlement reached the day before a planned general strike)
• 2025-08-29 · The U.S. Department of Commerce announced revocation of Verified End-User (VEU) status for Samsung Electronics' Xi'an NAND plant (EBN News)

Risk Factors

• Labor: The super-enterprise union had officially declared a general strike for 2026-05-21 to 06-07, but the dispute was resolved with a tentative wage agreement on 2026-05-20 (multiple reports; confirmation against primary sources recommended).
• Competition: HBM market share stands at 22-35% (as of Q3 2025), trailing SK hynix (53-57%), and Samsung's foundry business is reported to lag TSMC in yield.
• Trade: Plans for U.S. semiconductor tariffs have been reported, but whether they will actually be imposed, the rate, and the effective date are not confirmed against primary sources (official USTR/Department of Commerce announcements). Market commentary suggests companies with U.S. production facilities (such as the Taylor, Texas fab) may be eligible for exemption.
• Macro: Global macro uncertainty, geopolitical factors, and elevated volatility in the SOX index (a -14.75% pullback over the past month followed by a rebound) are cited as factors affecting valuation.