Samsung Hits Record Revenue in Q1 This Year, Expects Memory Shortage to Last Beyond 2027

Samsung Electronics posted record revenue for the first quarter ending March 31, 2026, marking a 43 percent increase over the previous quarter. It reported a consolidated revenue of KRW 133.9 trillion (roughly Rs. 8,00,000 crore) for the Q1 and posted a record operating profit. However, earnings from the foundry business declined in the first quarter. During its Q1 earnings call, Samsung reportedly predicted that the ongoing memory shortage is unlikely to ease before 2027. The company expects the situation could become even more severe in the coming days.

Samsung Electronics Posts Record Q1 Profit

Samsung Electronics reported record quarterly profit for the January March period this year, with consolidated revenue reaching an all-time high of KRW 133.9 trillion and operating profit hitting an all-time high of KRW 57.2 trillion (roughly Rs. 3,00,000 crore). The growth was driven mainly by the brand's Device Solutions (DS) Division, especially the Memory Business, which benefited from the AI demand and the technological leadership in the memory market.

The MX and Networks businesses of Samsung posted KRW 38.1 trillion (roughly Rs. 2,04,000 crore) in consolidated revenue and KRW 2.8 trillion (roughly Rs. 18,000 crore) in operating profit for the first quarter. The sale of premium smartphones helped the Device eXperience (DX) Division post a QoQ sales increase of 19 percent. However, Samsung says some departments, such as the Foundry Business and the Display division, were down due to seasonal effects, higher memory prices, and cost pressures.

Samsung's Display Corporation (SDC) posted KRW 6.7 trillion (roughly Rs. 40,000 crore) in consolidated revenue and KRW 0.4 trillion in operating profit for the first quarter. The SDC reported a decline in earnings for the small and medium display business due to seasonal effects and the impact of higher memory prices. Demand for OLED gaming monitors helped the department maintain stable sales.

For the second half of this year, Samsung expects continued strong demand for memory, driven by AI infrastructure and services, while planning further growth through flagship devices, foldables, and advanced chips, including the development of the 1.4nm node and a second-generation 2nm process.

Samsung's Visual Display (VD) and Digital Appliances (DA) businesses generated KRW 14.3 trillion in revenue and KRW 0.2 trillion (roughly Rs. 1,200 crore) in operating profit in Q1 2026. Harman's earnings declined in Q1 due to higher costs and seasonal factors, but the brand says the sales will improve later this year, backed by automotive supply and premium audio sales.

Samsung Flags Prolonged Memory Crunch

Additionally, Reuters reports that during its earnings call, Samsung warned that the ongoing memory chip crunch will persist into next year and the supply shortage will worsen in 2027. "Our supply falls far short of customer demand," Kim Jaejune, a Samsung memory chip business executive, reportedly said. "Based solely on the demand currently received for 2027, the supply-to-demand gap for 2027 is set to widen even further than ⁠in 2026."