Samsung Electronics Co., Ltd.

Record financials; margin milestone (good/surprising) - Q3 2026 revenue: KRW 195.3tn, up +14% QoQ; operating profit: KRW 107.4tn, up +20% QoQ. - First global tech company to post quarterly operating profit > KRW 100tn; operating margin improved to 55% (from 52% prior quarter). - Net profit: KRW 75.1tn (+5% QoQ); EPS: KRW 11,462 (common) / KRW 11,492 (preferred), +6% QoQ.

DS (Memory/Foundry) strength driven by AI demand; FX and cost pressure as key negatives (good + bad) - Management cited continued robust AI-driven semiconductor demand, especially HBM4 and server-related products. - FX headwind: weaker USD/EUR/major currencies hurt operating profit by about KRW 10tn QoQ (mainly components). - Outlook for Q4: expects company-wide earnings growth, with DS still strong, but DS faces ongoing pressure from macroeconomic uncertainty and rising component costs.

Memory outlook beyond 2027: tight supply likely continues; capacity/CapEx won’t quickly ease bits (opportunity + risk) - For 2027, CFO + Memory team expect semiconductor market strength and growth in DS; memory demand expected to far exceed supply due to AI investment + supply constraints. - For 2028 (investor key point): management expects tight supply conditions to continue in 2028 as: - Capacity additions have limited short-term impact on bit production (long fab lead times, construction cost/equipment pricing, procurement lead times). - Physical constraints as HBM generations have larger die sizes and shift from conventional DRAM to HBM. - Multiyear contracting: Memory is targeting multiyear contract mix of 60–70% of mid/long-term capacity (visibility improving), with 10 major accounts already contracted and negotiations with additional accounts ongoing.