Samsung Electronics reported a 43 per cent increase in first-quarter revenue to ₩133.9 trillion, marking its strongest quarterly performance on record despite weak demand in its display and telecommunications segments. 

The company disclosed this in its first-quarter 2026 financial results released on Friday, highlighting robust overall growth across key business segments.

Operating profit also reached a record ₩57.2 trillion for the quarter ended March 31, 2026, underscoring strong earnings momentum despite broader market challenges.

Samsung said some business units faced pressure from weak demand, seasonal slowdowns, rising tariffs and increasing operational costs during the period.

Samsung Display Corporation reported weaker earnings in its small- and medium-sized display segment due to seasonal softness in smartphone demand and higher memory prices.

The company projected continued uncertainty and low visibility in the display market for the second half of 2026.

“In Q2 2026, the small and medium display business will focus on sales in the relatively resilient high-end segment,” Samsung said.

It added that overall market demand remained weak despite expected resilience in premium segments.

Samsung said its networks business recorded lower earnings both quarter-on-quarter and year-on-year, citing investment headwinds in the global telecommunications industry.

“In Q1 2026, the Networks Business experienced a decline in earnings as it faced investment headwinds,” the company said.

The digital appliances business recorded only limited improvement in earnings amid rising tariffs and persistent cost pressures.

Its Harman subsidiary also posted lower earnings, reflecting increased expenses linked to memory constraints and seasonal weakness in audio demand.

In spite of these challenges, Samsung’s semiconductor business remained the company’s strongest growth driver during the quarter.

The Device Solutions Division posted revenue of ₩81.7 trillion and operating profit of ₩53.7 trillion, supported by strong demand for AI-related memory products.

Samsung said its memory business achieved record quarterly sales and operating profit, driven by products such as HBM4 chips and PCIe Gen6 SSDs.

The company added that it had begun mass sales of HBM4 and SOCAMM2 products for NVIDIA’s Vera Rubin platform.

According to Samsung, demand for server memory will remain strong through 2026 as enterprises expand their use of artificial intelligence and large language model services.

Samsung also reported stronger sales and profits in its mobile business following the launch of new flagship smartphones and increased premium device sales.

The company said it would continue to focus on AI-driven products, premium offerings, and efficiency measures to sustain profitability amid global uncertainties. 

(NAN)