Samsung Electronics, the global technology company based in Suwon, reported a solid second quarter with a net profit of 11.1 trillion won, roughly 8.32 billion euros. This marked a 15.3 percent year over year increase, even as demand softened amid ongoing geopolitical tensions. In the same period, the gross operating profit, or EBITDA, reached 14.46 trillion won, about 10.85 billion euros, reflecting a rise of 12.3 percent from the previous year. Operating profit stood at 14.1 trillion won, or 10.58 billion euros, while overall sales climbed 21.2 percent year on year to 77.2 trillion won, equal to around 54.15 billion euros. These figures come from the companys latest financial report and were released on a Thursday. Source Samsung Financial Report.
Samsung has now posted revenues above the 70 trillion won mark for four consecutive quarters. This sustained top line strength is driven by a robust lineup of flagship mobile devices that continue to resonate with consumers and by ongoing demand for memory chips, particularly those used in server farms and data centers. The companys semiconductor division posted sales of 28.5 trillion won, about 21.37 billion euros, up 23.6 percent from the prior year. The division also delivered an operating profit of 9.98 trillion won, up 44 percent, underscoring the importance of memory and components in the overall earnings mix. In the mobile segment, sales reached 7.71 trillion won, or about 5.78 billion euros, marking a 12.2 percent year over year increase. However, profitability in the mobile business softened, with operating profit down 17.2 percent year over year, even as revenue remained strong. The mobile devices portfolio contributed significantly to the groups revenue stream while facing competitive pricing pressures and higher component costs that affect margins. The company also held a substantial cash position and continued to invest in research and development to maintain a competitive edge in a dynamic market.
Samsung Electronics notes that macroeconomic factors are weighing on the pace of growth. The financial report highlights rising costs amid geopolitical tensions and inflation as factors that are dampening consumer demand. While sales show resilience, the combination of higher raw material costs and supply chain volatility creates margin headwinds that management is actively addressing through efficiency measures, product mix optimization, and disciplined capital expenditure. The quarterly results reflect a careful balance between expanding market share in core businesses and safeguarding profitability in an environment of price pressure, inflation, and uncertain demand. Market observers will be watching how the company adjusts its production and pricing strategies to sustain momentum as global markets adapt to shifting economic conditions and changing consumer priorities.