-- South Korean tech conglomerate Samsung Electronics released on Tuesday strong first quarter 2026 earnings guidance, forecasting a record 57.2 trillion won in operating profit and 133 trillion won in consolidated sales.
Sales in the first quarter are expected to rise 68% on year, and while profits should gain by 755%, according to Samsung.
Samsung's positive Q1 outlook was undergirded by high AI chip demand, but tempered modestly by expectations on other Galaxy products, such as mobile phones and home entertainment goods.
The Samsung guidance release somewhat answered market concerns that Middle East turmoil could hamper the tech giant's revenue and profits, although a sustained conflict could again challenge outlooks in future quarters.
Samsung's Q1 revenues are expected to rise about 41% from the fourth quarter of 2025, while profits should jump by about 171% in the same period, according to the forecast.
Samsung's Q1 outlook "far outpaced brokerages' earnings consensus of 38.1 trillion won in operating profit and 117 trillion won in sales, prompting analysts to describe the guidance as a 'super surprise,'" reported The Korea Times.
With this upbeat outlook, Samsung is poised to become the globe's fourth-most profitable enterprise, trailing only Apple (AAPL), Saudi Aramco and Microsoft (MSFT), said The Korea Times.
Samsung shares traded up 1.8% at the close of Tuesday's trade.