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Samsung Electronics

AI memory and shareholder returns, 2024 to 2026

Fostering a virtuous cycle in which corporate growth and shareholder value creation reinforce each other
Samsung Electronics on its shareholder return

AI memory and shareholder returns

Samsung Electronics promised in January 2024 to return half of its free cash flow to shareholders over three years. Two and a half years on, AI demand has made its memory business earn almost all of its profit, and the payout planned for 2026 is five times the previous record. The rest of the company, phones and televisions, is making little or losing money.

LOT 1

Memory

  1. 010ServersFocus on server demand, where DRAM, enterprise SSDs, and high-bandwidth memory (HBM) are expected to grow faster in the second half of 2026.
  2. 020High-value productsLead with high-value-added products: HBM4, DDR5, and SOCAMM2.
  3. 030Next generationExtend that lead into the next AI platforms, after shipping the first HBM4E samples.

The Memory Business set records for revenue and operating profit in both the first and the second quarter of 2026.,

Samsung began the industry’s first mass sales of HBM4, for NVIDIA’s Vera Rubin platform, in the first quarter.

Supply constraints are expected to continue despite efforts to increase production.

The chip division made almost all of Samsung’s profit

Samsung’s operating profit reached ₩89.5 trillion in the second quarter of 2026, up from ₩57.2 trillion in the first. The Device Solutions division, which makes memory and other chips, made ₩89.2 trillion of it.,

Second quarter 2026, by division

  • Device Solutions (chips)₩89.2 trillion
  • Samsung Display₩0.7 trillion
  • Phones and networksA loss of ₩0.7 trillion
  • Televisions and appliancesA slight operating loss
  • HarmanImproved earnings

Samsung’s operating margin reached 52% in the second quarter

Samsung’s operating profit was ₩89.5 trillion on revenue of ₩171.5 trillion in the second quarter of 2026, and almost all of it came from the chip division.

0.0%

of revenue kept as operating profit in the second quarter 2026, ₩89.5 trillion on ₩171.5 trillion

0.0%

of the profit came from Device Solutions, the chip division, at ₩89.2 trillion

Each die is 1% of the quarter’s revenue. The margin and the chip division’s share are worked out from the reported figures.

Samsung plans to return ₩90 trillion to ₩110 trillion in 2026

That is up to five times its previous record of ₩20.3 trillion, in 2020. With 2024 and 2025 the three years would come to ₩120 trillion to ₩140 trillion. The dividend of about ₩30 trillion is planned for the third quarter, and the rest will be decided in January 2027.

Previous record, 2020

₩20.3tn

2024 and 2025 together

  • Regular dividends, 2024 and 2025: ₩19.6tn
  • Special dividend, 2025: ₩1.3tn
  • Buyback and cancellation, 2025: ₩8.4tn

₩29.3tn in all

2026 plan

₩90tn to ₩110tn

  1. Promise a share, not a sum.

    Samsung committed to returning 50% of free cash flow over three years, on top of a fixed regular dividend of ₩9.8 trillion a year. When profit rose sharply the payout followed it, to an expected ₩90 trillion to ₩110 trillion in 2026. We recommend setting a share of what the company earns for a goal that should grow with earnings, and a fixed sum only for what must not change.

  2. Report each part on its own line.

    In the second quarter the Device Solutions division made ₩89.2 trillion of the company’s ₩89.5 trillion operating profit, while phones and networks lost ₩0.7 trillion and blamed component costs. We recommend showing each part of a company separately, so it is clear which parts pay for the others.

  3. Plan for the shortage, not only the demand.

    Samsung’s memory business says supply constraints will continue, so it is prioritising server products and high-value-added products. We recommend deciding in advance which customers and products come first when demand is higher than the company can supply.

Sources

  1. 1. Samsung Electronics (2026). Samsung Electronics announces second quarter 2026 results. Samsung Newsroom, 30 July 2026. news.samsung.com
  2. 2. Samsung Electronics (2026). Samsung Electronics announces first quarter 2026 results. Samsung Newsroom, 30 April 2026. news.samsung.com
  3. 3. Samsung Electronics (2026). Samsung Electronics to implement largest-ever shareholder return in 2026, estimated at KRW 90 to 110 trillion. Samsung Newsroom, 21 August 2026. news.samsung.com

Headwater is not connected with Samsung Electronics Co., Ltd. Samsung, Galaxy, Harman, and Samsung TV Plus are trade marks of their owners. Updated 28 September 2026.

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