Samsung Electronics Co., Ltd. Q1 FY2026 earnings call

• CFO Park mentioned total revenue, operating profit, net profit records. • DS division: Memory and system semiconductor performance. • DX division: Revenue growth with new smartphones. • CapEx: Q1 KRW 11.2 trillion, 2026 to increase due to AI. • Shareholder returns: Dividend approved, share repurchase completed. • Business unit executives: Memory business on server demand and product mix, System LSI on SoC sales, Foundry on orders and processes, Display on market and products, MX division on smartphone results and outlook.

Total revenue reached KRW 134 trillion, operating profit KRW 57 trillion, net profit KRW 47 trillion. DS division: revenue increased driven by high value-added AI products, Memory business had second straight quarterly earnings record, operating profit led by Memory, system semiconductor improved. DX division: revenue grew with new flagship smartphones, limited profit decline through high value-added products and resource efficiency. Memory: revenue increased, server application demand robust, HBM4 and SOCAMM2 shipped, PCIe Gen 6 SSD in customer qualification. System LSI: earnings improved despite smartphone market weakness, Q2 revenue expected lower, focus on SoCs and sensors. Foundry: earnings declined Q-o-Q but double-digit revenue growth, advanced nodes to full utilization, 2-nano process in mass production. Display: mobile display performance declined, large display stable with gaming monitors, Q2 focus on high-end products, H1 uncertain. MX division: smartphone market declined, Q1 revenue KRW 37.5 trillion, operating profit KRW 2.8 trillion, Q2 revenue expected decline, H2 focus on flagship sales and AI capabilities.

• Second quarter: Semiconductor demand strong, Memory price upward, System LSI offsets earnings, Foundry drives earnings, Display targets performance, DX division profit decline. • Second half: Mixed business environment, semiconductor demand growth, cost pressures, focus on high value-added products. • 2026: AI-driven CapEx increase, R&D investments, strategic production hubs. • Memory: HBM4E samples in Q2, focus on server products. • System LSI: Focus on SoCs and sensors. • Foundry: Advanced nodes full utilization, 2-nano mass production. • Display: Premium product strategy. • MX division: Flagship-centric sales, AI capabilities.

• Geopolitical headwinds like Middle East tensions. • Rising oil prices impacting costs. • Labor union issues, potential strike in May. • Supply chain risks for raw materials. • Uncertain market conditions and memory supply issues. • Cost pressures in MX division.

Q: About multiyear contracting for memory and bonus payouts.

A: Jaejune Kim on multiyear contracts, Soon-Cheol Park on bonus not in Q1 provisions.

Q: Memory performance and labor strike.

A: Jaejune Kim on memory performance, Sei Cheol Lee on strike response.

Q: Shareholder return policy and corporate value enhancement.

A: Sei Cheol Lee on policy execution and plans.

Q: Middle East risks and MX profitability.

A: Soon-Cheol Park on risks, Seong Cho on MX measures.

Q: Memory business outlook and AI strategy.

A: Jaejune Kim on memory, Soon-Cheol Park on AI.

Q: HBM sales and display measures.

A: Unknown on HBM, Unknown on display.

Q: Foundry orders and VD countermeasures.

A: Sukchae Kang on foundry, Louis Kim on VD.

Q: Memory product mix and System LSI.

A: Jaejune Kim on mix, Jason Shin on System LSI.

Q: MX and DA business strategies.

A: Seong Cho on MX, Unknown on DA.

Q: NAND market for AI.

A: Unknown on NAND.

Q: TV industry impact and foundry expansion.

A: Unknown on TV, Sukchae Kang on foundry