Samsung Says Q3 Operating Profits Soar to $6.6 bn, But Miss Forecast

AFP/APP

Seoul:  South Korea’s Samsung Electronics announced on Thursday that its operating profits jumped 277% year-on-year to $6.6 billion, though they fell short of expectations as the company faced challenges in capitalizing on demand for AI server chips.

The world’s largest memory chip maker reported an operating profit of 9.18 trillion won ($6.6 billion), impacted by “one-off costs.” While nearly triple the figure from a year prior, the profit fell 12% compared to the previous quarter, missing market expectations. Revenue rose by 17.35% to a record 79.1 trillion won ($57.2 billion).

As Samsung Group’s flagship subsidiary, Samsung Electronics is a key player in Asia’s fourth-largest economy. Its semiconductor division, integral to the global tech ecosystem, reported an operating profit of 3.86 trillion won, down 40% from the previous quarter.

Samsung attributed the division’s decline to factors including “a reduced reversal of inventory valuation loss compared to the previous quarter, one-off expenses like incentive provisions, and currency effects from a weaker dollar.”