Home · Business · Oct 29 archive
Samsung Surpasses Microsoft and Alphabet in Quarterly Profits
Confirmed
In Short: Samsung Electronics announced a record-breaking third-quarter operating profit of 107.4 trillion won ($80.4 billion), surpassing the combined earnings of Microsoft, Alphabet, and Meta.
Samsung Electronics announced a record-breaking third-quarter operating profit of 107.4 trillion won ($80.4 billion), surpassing the combined earnings of Microsoft, Alphabet, and Meta. This marks the first time a technology company has achieved a quarterly operating profit of over 100 trillion won.
The strong performance was driven by robust demand from hyperscalers in the AI sector, which has fueled the company's chip division. However, despite the impressive figures, Samsung's stock faced a 4.1% decline due to investor disappointment with the latest shareholder return policy.
Samsung SDI, a subsidiary focused on batteries and energy storage systems, also reported a significant profit of 342.2 billion won, driven by increased U.S. orders.
Industry experts predict that Samsung could earn up to 120 trillion won in the fourth quarter, potentially bringing its annual operating profit to around 370 trillion won.
In comparison, Nvidia, the leading AI semiconductor company, reported a quarterly operating profit of approximately $63.7 billion, which is significantly lower than Samsung's $80.2 billion. Alphabet and Microsoft, with operating profits of $40.8 billion and $40.6 billion respectively, also fell short of Samsung's earnings.
Samsung's success in the chip market is attributed to its high-bandwidth memory (HBM) products, with the company expecting HBM4 revenue to more than triple in the third quarter compared to the previous quarter.
Despite the positive financial outlook, Samsung's aerospace and defense division saw a drop in operating profit due to a delay in major Poland-bound defense deliveries.
The company's performance highlights the growing importance of AI-driven demand in the semiconductor industry, as Samsung continues to capitalize on the surge in AI-related investments by major tech firms.
Samsung's achievement underscores its dominance in the global tech market, positioning it as the world's most profitable company in terms of quarterly operating profit.
In a separate development, Apple removed the BitChat app from its India App Store following a demand from the Ministry of Electronics and Information Technology (MeitY), highlighting ongoing regulatory challenges for tech companies.
Microsoft also faced criticism for job cuts, with BioWare, the developer of the Mass Effect series, announcing its closure and the end of early development on the next Mass Effect project.
These developments reflect the complex landscape of the tech industry, where companies are navigating regulatory hurdles and making strategic decisions to align with long-term growth opportunities.
What's confirmed
- Samsung Electronics said on Oct. 8 that preliminary third-quarter revenue on a consolidated basis came to 195 trillion won, with operating profit of 107.4 trillion won.
What's still developing
- The earnings now even blow past those of Microsoft, Alphabet and Meta, the very U.S. tech giants whose AI data center spending is fueling the chipmaker’s windfall.
- The California-based technology giant posted quarterly revenues that disappointed investors, raising questions over whether it can generate enough sales to justify its huge investments in AI.
- BitChat had previously drawn government action in July 2026 when the Indian Cybercrime Coordination Centre ordered Microsoft subsidiary, GitHub, to remove the application during protests by the Cockroach Janta Party over alleged exam paper leaks.
- “Across our portfolio, we’re making deliberate choices to align talent and investments where we see the greatest opportunities for players and long-term growth,” the letter reads in part.
- It would appear that Microsoft isn’t the only one swinging its job-killing hatchet around.