SEOUL, July 24, 2026, 21:18 KST
- Samsung ended Friday trading at 249,500 won, falling 7.6%.
- Initial results for the second quarter indicate an operating margin of 52.3%.
- Samsung plans to hold its earnings call on July 30 at 10 a.m. KST.
Samsung Electronics KRX:005930 ended the session down 7.6% at 249,500 won on Friday. The Korea Exchange did not open at the time of reporting.
The drop is significant as Samsung’s initial profit forecast indicates a notable rise. The company’s guidance suggests its operating profit will jump by 56% from the previous quarter.
Market participants are scrutinizing how earnings are composed rather than focusing solely on the headline figure. Since the July 6 pre-guidance close, the stock has fallen by 21.5%.
The gap between profits and prices is evident.
| Measure | Earlier figure | Latest figure | Change |
|---|---|---|---|
| Revenue | Q1 actual: ₩133.87 trillion | Q2 preliminary: about ₩171 trillion | +27.7% |
| Operating profit | Q1 actual: ₩57.23 trillion | Q2 preliminary: about ₩89.4 trillion | +56.2% |
| Operating margin | Q1 actual: 42.8% | Q2 preliminary: 52.3% | +9.5 points |
| Share price | ₩318,000 on July 6 | ₩249,500 on July 24 | -21.5% |
These Q2 results are provisional, based on K-IFRS standards. The percentages rely on Samsung’s official data and closing prices.
First-quarter results by segment reveal the cause for worry. Device Solutions accounted for 53.7 trillion won out of Samsung’s total 57.23 trillion operating profit.
That amounted to nearly 94% of the group’s profit. This level of concentration heightens Samsung’s vulnerability to fluctuations in memory-chip prices.
Samsung’s phone division is also feeling the impact of memory inflation. Certain analysts anticipate the mobile segment could post its first-ever quarterly loss.
According to Omdia, memory and storage account for over 60% of the material costs in budget smartphones, and more than 30% in high-end models.
Samsung increased the prices of its two new foldable phones by $100 this week. “A bigger screen alone is no longer enough,” said Omdia analyst Sheng Win Chow. Reuters
Broader de-risking was reflected in market breadth on Friday. Shares of SK Hynix KRX:000660 dropped 8.34% as the KOSPI index declined over 5%.
Samsung shares fell 2.2% from their July 16 close before the holiday. The stock’s increase to 270,000 won on Thursday helped ease the week’s loss.
Market structure is set to stay in focus next week. Regulators advanced the 30 million won deposit requirement to July 31.
The regulation applies to retail investors trading leveraged single-stock funds. Investments linked to Samsung and SK Hynix have faced attention for increasing volatility.
Samsung will hold its earnings call at 10 a.m. KST on July 30. Analysts are likely to focus more on segment margins than on the headline preliminary group figure.
Latest supply data presents a mixed picture. China’s CXMT has recently priced comparable server-memory modules higher than Samsung’s approximate $1,240 level.
According to Reuters sources, CXMT is still lagging by two generations in high-bandwidth memory technology. However, the company’s proposed factories may enable it to more than double its production capacity.
Risks: Reduced AI investment or a drop in memory chip prices may negatively impact Samsung’s chip-focused profits. Ongoing elevated component expenses could further widen device-related losses.
The July 30 test is straightforward. Can Samsung maintain chip margins while protecting its phone business?
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