Samsung Profit Jumps Nine-Fold to a Record — and Its Stock Fell 6% Anyway

Samsung Electronics reported a record third-quarter operating profit of 107.4 trillion won on Thursday, October 29, 2026 — up 783% from a year earlier — yet its shares fell more than 6% in Seoul and dragged South Korea's KOSPI index down about 3%. The split reaction sums up this earnings season: AI chip demand is booming, but investors are punishing even record results that only meet, rather than smash, expectations.

What happened

Samsung, the world's largest memory chipmaker, said operating profit rose nearly nine-fold to 107.4 trillion won (about $80 billion) for the quarter ended in September, up from 12.2 trillion won a year earlier. Revenue surged 126.9% to 195.25 trillion won. Both figures set records for a fourth straight quarter, according to Seoul Economic Daily, and operating profit beat the average market estimate of about 105.7 trillion won by 1.7%.

The engine was the Device Solutions division, which runs the semiconductor business. It posted revenue of 147.1 trillion won and operating profit of 106.5 trillion won, lifted by sales of HBM4, Samsung's sixth-generation high-bandwidth memory, and server solid-state drives bought for artificial intelligence data centres. Samsung also approved a cash dividend of 4,601 won per share, for a total payout of about 30 trillion won.

Why the stock fell on a record quarter

The share price told a different story from the headline numbers. Samsung stock rose as much as 2.89% to 249,000 won early in the session, then reversed shortly before 10 a.m. Seoul time, after the detailed results landed. By late morning it was down 6.61%, according to Yonhap, while the benchmark KOSPI had lost 181.1 points, or 3.01%, to 5,831.34, after rising as high as 6,100.11 earlier.

Two things disappointed traders. First, Yonhap reported that the earnings fell slightly short of analysts' expectations once the details were out, and Seoul Economic Daily noted that some in the market had expected the chip division's operating profit to approach 110 trillion won, above the 106.5 trillion won delivered. Second, Samsung was reporting into a nervous global backdrop: Alphabet shares had plunged about 10% in U.S. after-hours trading, wiping nearly $400 billion off its market value and dragging Nasdaq futures about 1% lower, as investors questioned heavy AI cash spending. Reuters reported that Samsung's slide dragged the broader KOSPI down 2.6% after a nearly 7% surge a day earlier.

Why it is blowing up

Samsung is not just a Korean story. Along with rival SK Hynix, which reported a seven-fold profit jump a day earlier, it supplies the memory chips AI data centres cannot run without, so its results send a signal about AI demand to chip stocks worldwide. Echoing SK Hynix, Samsung said the chip supply shortage would deepen next year. On Thursday, though, the mood was caution about how long the AI spending boom can last.

Key facts

• Operating profit: 107.4 trillion won, up 783.1% year on year, a record for a fourth straight quarter.
• Revenue: 195.25 trillion won, up 126.9% year on year.
• Chip division: 147.1 trillion won in revenue and 106.5 trillion won in operating profit, driven by HBM4 and server SSD sales.
• Dividend: 4,601 won per share, about 30 trillion won in total.
• Market reaction: Samsung shares down more than 6% late morning in Seoul; KOSPI down about 3%.
• Outlook: Samsung said the chip supply shortage would deepen next year.

What's next

Seoul Economic Daily reported that Samsung was the most heavily bought stock on Thursday morning by Mirae Asset Securities' top-returning traders, suggesting some saw the drop as a buying opportunity. Samsung is due to announce its next shareholder return policy after a board meeting in January 2027, according to Reuters Breakingviews. Globally, Amazon and Intel results due later on Thursday will test the same AI-spending nerves.

The takeaway is narrow but important: in this market, a record profit is the entry ticket, not the reward. Companies riding the AI chip boom now have to beat the whisper numbers, not just last year, to keep their shares rising.

Sources

• Reuters via Duke FM — Samsung posts record profit in Q3 on AI chip boom
• Yonhap via K-Vibe — Seoul stocks down 3% after Samsung earnings
• Seoul Economic Daily — Top traders load up on Samsung as record earnings trigger 5% drop
• Reuters — Asian shares fall as Alphabet earnings miss drags futures lower
• Reuters Breakingviews — Samsung's returns conservatism

FAQ

How much profit did Samsung make in the third quarter?

Samsung reported operating profit of 107.4 trillion won (about $80 billion), up 783% from 12.2 trillion won a year earlier — a record high, driven by AI chip demand.

Why did Samsung's stock fall after record earnings?

The detailed results fell slightly short of what some traders expected, especially in the chip division, and global AI-spending worries after Alphabet's after-hours plunge weighed on sentiment.

How did South Korea's market react?

The KOSPI fell about 3% late Thursday morning to 5,831.34, reversing early gains, with Samsung — the index's biggest stock — down more than 6%.

What did Samsung say about chip demand ahead?

Samsung said the chip supply shortage would deepen next year, echoing SK Hynix, as AI data centres keep buying high-bandwidth memory and server storage.