Samsung posts record quarter as mobile business leans on Galaxy flagships and AI

GaryPageau
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Samsung Electronics reported record second-quarter 2026 results, driven primarily by booming demand for AI-related memory products, while its mobile business continued to rely on premium Galaxy devices to offset higher component costs. The company posted consolidated revenue of KRW 171.5 trillion, up 28% from the previous quarter, with operating profit reaching a record KRW 89.5 trillion. The Device Solutions division, which includes memory and semiconductor operations, accounted for nearly all of the company’s earnings as AI infrastructure demand fueled record sales of server memory and high-bandwidth memory (HBM) products.

Samsung’s Mobile eXperience (MX) and Networks division generated KRW 33.2 trillion in revenue but recorded an operating loss of KRW 0.7 trillion. The company said year-over-year revenue improved thanks to solid sales of the Galaxy S26 smartphone lineup and continued momentum from its midrange Galaxy A series. Higher component costs, however, across the industry weighed on profitability.

Looking ahead, Samsung plans to expand its flagship-led strategy with the upcoming Galaxy Z8 foldable smartphones and continued promotion of the Galaxy S26 series. The company also intends to emphasize artificial intelligence features across its mobile portfolio, including more personalized user experiences and the introduction of its new Intelligent Eyewear platform. Samsung said it will focus on increasing the share of premium products across the broader Galaxy ecosystem while pursuing efficiency measures to offset rising manufacturing costs.

Beyond smartphones, Samsung Display reported improved earnings on strong demand for premium mobile OLED panels and expects continued growth from flagship smartphone displays in the second half of the year. The company will also expand production of OLED panels for tablets, gaming devices and automotive applications.

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Gary Pageau is principal of InfoCircle LLC, continuing his marketing communications career. InfoCircle LLC is a marketing and communications consulting firm, specializing in business-to-business markets. For nearly 25 years, he was with PMA International, serving most recently as Publisher, Content Development and Strategic Initiatives. His primary responsibilities included overseeing the Association’s editorial department, marketing research unit, education and corporate relations department.