Samsung Electronics Q2 operating profit plunges 55% y/y due to low semiconductor earnings

Samsung Electronics on Thursday reported a second-quarter operating profit of 3-point-4 billion U.S. dollars.

That's a 55 percent plunge from a year ago, and over 21 percent lower than market expectations.

In its regulatory filing, the company also recorded a net income of 5-point-1 trillion won which marks a 48 percent drop on-year.

This was largely due to sluggish demand for high bandwidth memory chips.

The semiconductor division posted an operating profit of only 400 billion won, which is the lowest since the fourth-quarter of 2023.

However, despite weak profits, overall chip sales climbed 11 percent on-year, driven by demand for premium server chips and increased foundry orders.