Samsung Electronics announces financial results for Q1, 2025; Operating profit increased to KRW 6.7 trillion
Samsung Electronics has officially announced financial results for the first quarter of 2025. The South Korean tech giant has posted KRW 79.14 trillion in consolidated revenue, operating profit increased to KRW 6.7 trillion despite a decrease in quarterly revenue of the DS Division, exceeding the forecasts.
The company has also increased its R&D expenditure by 16% compared to the same period last year, amounting to 9 trillion won.
Semiconductors
DS Division posted KRW 25.1 trillion in consolidated revenue and KRW 1.1 trillion in operating profit for the first quarter, down 42% on-year. For the Memory Business, revenue was driven by expanded server DRAM sales and the addressing of additional NAND demand. Overall earnings were impacted by the erosion of average selling price, as well as a decrease in HBM sales due to export controls on AI chips and deferred demand in anticipation of upcoming enhanced HBM3E products.
Earnings at the System LS1 Business improved modestly due to an increased supply of high-resolution sensors and LSI products. While earnings for the Foundry Business were muted due to sluggish seasonal mobile demand, inventory adjustments, and stagnant fab utilization.
In Q2 2025, Memory Business anticipates robust demand for AI servers. The Memory Business seeks to enhance cost competitiveness for NAND by accelerating the transition to 8th-generation V-NAND for all applications. System LSI Business will maintain steady revenue by gaining SoC adoption by a major customer for new flagship models and capitalizing on the growing adoption of 200MP sensors. Business will stabilize its 2nm process production and drive earnings improvement by actively addressing strong mobile and automotive demand in the US.
In H2 2025, AI-related demand is expected to remain high in conjunction with the launch of new PUs. Therefore, the Memory Business will expand the sales of high-value-added products, including enhanced HBM3E 12H products and high-density DDR5 modules of 128GB or higher. In the mobile and PC markets, on-device AI is expected to proliferate, so the Memory Business will proactively respond to this shift in the business environment with its industry-leading 10.7 Gbps LPDDR5x products.
In H2 2025, the System LSI Business will expand its flagship SoC supply, proactively address demand for high-resolution main and telephoto camera sensors, and expand its automotive sensor portfolio.
Samsung Display Corporation
Samsung Display Corporation (SDC) posted KRW 5.9 trillion in consolidated revenue and KRW 0.5 trillion in operating profit for the first quarter. For the mobile display business, SDC reported declining profits QoQ due to seasonality. The results of the large display business have improved via the launch of new QD-OLED monitor products for major clients.
In Q2 2025, the mobile display business maintains a conservative outlook on earnings while pursuing the stable supply of new products such as foldables. For the large display business, demand for gaming monitors is expected to grow due to the upcoming launches of new products.
In H2 2025, SDC aims to grow the mobile display business sales through differentiated technologies and products amid rising market uncertainties. For the large display business, SDC will strengthen its presence in both B2C and B2B monitor markets with diverse product lineups.
MX and Network Businesses
The MX and Networks businesses posted KRW 37 trillion in consolidated revenue and KRW 4.3 trillion in operating profit for the first quarter. MX Business experienced QoQ growth in both revenue and operating profit due to the strong sales of its Galaxy S25 series. Meanwhile, enhanced cost competency and price declines for some components also contributed to solid double-digit profitability.
The brand revealed that in Q2 2025, the MX Business plans to sustain flagship-centric sales amid weak seasonality by successfully launching the Galaxy S25 Edge. It will also expand its AI smartphone lineup through the introduction of “Awesome Intelligence” to the Galaxy A series.
Whereas, in H2 2025, the MX Business will strengthen its foldable lineup by offering a differentiated AI user experience. In addition, the Business will launch new ecosystem products with enhanced AI and health capabilities, and explore new product segments such as XR.
Visual Display and Digital Appliances businesses
Visual Display and Digital Appliances businesses posted KRW 14.5 trillion in consolidated revenue and KRW 0.3 trillion in operating profit in the first quarter. It is revealed that the Visual Display business recorded solid sales of strategic products such as Neo QLEDs, OLEDs, and large models of 75 inches and over, while price increases and material cost reductions resulted in improved QoQ profitability.
In Q2 2025, the Business intends to expand TV sales with its 2025 AI TV lineup and the integration of advanced AI functions. While in H2 2025, the Business will focus on capturing peak season demand by strategic collaboration with distributors, based on an enhanced AI TV lineup.
Apart from this financial result, Samsung executives have also warned that the US tariffs could pose uncertainty for its chip businesses and smartphone components. The growing macroeconomic uncertainties due to recent global trade tensions and slowing global economic growth have also made it difficult for the brand to predict future performance. Though the company aims to make various efforts to secure growth.
