Samsung Electronics is projected to exceed 100 trillion won in operating profit for the third quarter, marking the first time in the company's history that it has achieved this milestone. This record is unprecedented in the history of South Korean companies and ranks among the top globally.
According to industry sources and analysts on September 27, the consensus for Samsung's consolidated operating profit for the third quarter, set to be announced early next month, is estimated to be around 106 trillion to 110 trillion won. If realized, this profit would be approximately 2.5 times last year's total annual operating profit of 43.6 trillion won, achieved in just over a month. When combined with the cumulative operating profit of 146 trillion won from the first half of the year, the total for the third quarter is expected to surpass 250 trillion won.
This performance is significantly stronger than that of major global tech companies. Samsung's operating profit will surpass the previous record held by Nvidia, which reported about 87.66 trillion won in Q2, as well as Alphabet (approximately 60 trillion won) and Apple (around 51.44 trillion won). The top spot is expected to be held by Saudi Aramco, which is projected to achieve operating profits between 120 trillion and 150 trillion won due to soaring oil prices.
The robust performance is primarily supported by Samsung's core memory business. The surge in investments in artificial intelligence (AI) data centers has led to a significant increase in the supply of high-bandwidth memory (HBM) and server DRAM, both of which are high-value AI memory products. Additionally, the rise in selling prices of general-purpose memory has maximized overall profitability. Samsung's overwhelming production capacity has absorbed global memory demand, driving unprecedented growth in performance.
Samsung is also expected to implement a record-scale shareholder return policy. During a board meeting on August 21, the company announced that the remaining funds for shareholder returns this year would amount to approximately 90 trillion to 110 trillion won, signaling a return policy at an unprecedented level, nearly five times the previous maximum of 20.3 trillion won in 2020.
Alongside the third-quarter earnings announcement, Samsung is set to finalize and disclose specific execution plans. Analysts anticipate that around 30 trillion won in cash dividends and special dividends will be distributed in the third quarter alone, including regular dividends.
Given the explosive increase in cash liquidity, there is a strong possibility that the company will also utilize large-scale share buybacks and retirements. Share buybacks and retirements are expected to significantly enhance earnings per share (EPS) by reducing the number of shares outstanding, serving as a powerful momentum for stock price increases. Considering Samsung's cash assets exceeding 100 trillion won in the first half of the year and the rapid increase in free cash flow (FCF) in the third quarter, it is anticipated that the company will smoothly execute share retirements and expand dividends worth several trillion won by the end of the year.
* This article has been translated by AI.
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