Samsung Electronics and LG Electronics are set to announce their preliminary results for the first quarter of 2026 next week.
Both companies have faced challenges in their finished goods (sets) businesses, including home appliances and TVs, due to internal and external uncertainties. However, Samsung Electronics is expected to achieve a quarterly operating profit milestone of 40 trillion won, benefiting from a semiconductor supercycle (period of extreme growth).
LG Electronics, on the other hand, is anticipated to recover profitability, turning around its deficit from the previous quarter, thanks to strong performances in its HVAC and automotive electronics sectors.
According to industry reports, both companies will release their first-quarter preliminary results on April 7. Data compiled by Yonhap Infomax from 13 brokerage firms over the past month estimates Samsung Electronics’ first-quarter sales and operating profit at approximately 121.3946 trillion won and 41.8359 trillion won, respectively. If these estimates are accurate, the operating profit will have increased more than sixfold compared to the first quarter of 2025 (6.6853 trillion won), and it will be double that of the previous year’s fourth quarter operating profit (around 20 trillion won), likely breaking the record for the largest quarterly operating profit.
While detailed results by business segments are not disclosed in preliminary results, it is expected that the booming semiconductor business has driven the overall performance. In contrast, the smartphone business might have experienced some sluggishness.
Compared to last year, there has been a complete shift in the company’s leading sectors. In the first quarter of last year, the DS division, which handles the semiconductor business, struggled due to market slowdown and high-bandwidth memory (HBM) delays. Meanwhile, the MX division benefited from the launch of the ‘Galaxy S25’, achieving an operating profit of over 4 trillion won, driving the company’s overall performance.
Stock market analysts predict that the DS division’s operating profit could range from at least 37 trillion won to a maximum of 48 trillion won in the first quarter of this year, marking explosive growth compared to the first quarter of last year (operating profit of 1.1 trillion won), owing to sustained demand for memory semiconductors, rising generic DRAM prices, and expanded HBM sales.
The MX division, which has traditionally supported the company’s performance, is expected to see its operating profit remain in the 2 trillion won range, despite the launch of the ‘Galaxy S26′ earlier this year, due to the rising costs of components such as memory. However, some speculate that proactive cost efficiencies might allow it to maintain performance levels similar to previous years.
Additionally, the DA (home appliances) and VD (TV) divisions, which reported a loss of 600 billion won in the fourth quarter last year, are anticipated to turn a profit in the first quarter.
LG Electronics, which does not engage in semiconductor and smartphone businesses, is expected to report better-than-expected results across all business units despite a slowdown in set demand. According to consensus from 15 brokerages’ reports over the past three months, LG Electronics’ first-quarter sales and operating profit are projected to be 23.2618 trillion won and 1.3749 trillion won, respectively, marking a 2.3% increase in sales and a 9.2% increase in operating profit compared to the same period last year.
After dealing with a one-time cost and some business slumps resulting in an operating loss (1.09 trillion won) in the previous quarter, LG Electronics is expected to rebound in the first quarter.
By division, the HS business unit responsible for home appliances is anticipated to lead with an operating profit nearing 700 billion won. Meanwhile, the MS business unit in charge of TVs is likely to transition to profitability with slight improvements in operating profit, following a 7.509 trillion won deficit last year. Additionally, the ES business unit in charge of HVAC may achieve an operating profit exceeding 400 billion won, and the VS business unit (automotive electronics) is expected to support overall performance with an operating profit similar to previous years, in the low 1 trillion won range.
Senior DS Securities researcher Cho Dae-hyung analyzed, “This year’s TV business will significantly reduce losses through cost reduction and voluntary retirement effects. The automotive electronics business stabilizes as a cash cow, while the profitability contribution from HVAC is also increasing.”