Samsung Faces Q2 2025 Earnings Shock as Profit Falls 15%

Samsung is reportedly facing an earnings shock in the second quarter (Q2) of 2025. Early estimates suggest the company’s operating profit to decline by over 1 trillion won (approx. $734 million) compared to Q1. The Korean firm raked in 6.7 trillion won in the first quarter, while its Q2 profit is estimated to be around 5.6 trillion won. This figure is over 15% below analyst expectations, with the consensus forecast sitting at 6.8 trillion won. Samsung’s Q2 2024 profit was even higher at 10.44 trillion won.

Samsung really needs Nvidia’s Approval to regain its footing in the market

This sharp decline in profit is attributed primarily to continued weakness in the semiconductor (DS) division. Samsung’s chip unit hasn’t been able to penetrate the lucrative HBM market as its 12-layer HBM3E chips still lack Nvidia’s approval. The company has been trying hard, but various quality issues have delayed the certification. Samsung has also struggled to acquire large-scale foundry customers due to poor 3nm yields.

These setbacks mean Samsung’s semiconductor business has not yet fully capitalized on the global AI boom. The situation is compounded by external economic pressures. The Galaxy S25, launched in February, saw slower-than-expected sales, reportedly due to the ongoing global economic downturn. Additionally, Samsung’s TV and home appliance sectors suffered from increased U.S. tariffs and rising logistics costs.

Samsung will officially announce its preliminary Q2 2025 earnings next week

Despite the disappointing Q2 figures, Samsung is reportedly eyeing a rebound in the second half of 2025. It is gearing up to launch new foldable phones this month, which could boost mobile division performance. Moreover, the company will begin mass production of advanced 10nm-class 6th generation DRAM (1c DRAM) later this year — a key move in its effort to reclaim competitiveness in the memory market.

Industry analysts believe that with new product launches and advanced chip production, Samsung’s earnings may begin to recover in Q3, setting the stage for a stronger finish to the year. The Korean firm will officially share its outlook for the second half of 2025 in its earnings report at the end of this month. Ahead of that, Samsung will publish its preliminary Q2 2025 earnings next week, so stay tuned.