Samsung suffers Q2 loss, looks to Galaxy S26 FE, Tab S12 later this year

What you need to know

Samsung posted its Q2 2026 earnings, stating it recorded KRW 171.5 trillion in consolidated revenue, a 28% QoQ increase.
The company’s DS division recorded an all-time high thanks to its Memory Business; however, it MX (phone) division marked a decline.
The smartphone market has been struggling all year, but Samsung has been hanging in there, partly due to its Galaxy S26 series.

It’s about that time when earnings calls take place. Samsung is reporting its Q2 performance, and the company has confirmed a loss in its mobile division.

Samsung announced its Q2 2026 earnings, highlighting consolidated revenue of KRW 171.5 trillion (28% QoQ increase) and operating profit of KRW 89.5 trillion. Initially, the report begins well. As a company, Samsung says Q2 delivered “another all-time quarterly high.” A majority of this concerns the company’s DS (device solutions) division. Of course, we’re talking about Samsung’s Memory Business, which reportedly set “an all-time high for quarterly revenue and operating profit.”

Its DS division posted KRW 127.5 million in revenue (56% QoQ increase). According to the company, “The Memory Business achieved another record-breaking quarter by proactively addressing AI demand despite limited capacity with a primary focus on server products.” Samsung expects this trend to continue into the second half of 2026, as the adoption of Agentic AI and AI infrastructures continues.

The 2026 trend

Reading material on the Galaxy Z Fold 8 inner screen — (Image credit: Derrek Lee / Android Central)

It’s hard to say we’re surprised by Samsung’s Q2, especially when we look back at 2026 so far. In Q1, Omdia’s research report about the state of the U.S. smartphone market showed a 3% YoY dip. Rising memory and storage costs were attributed to this decline. Samsung was the top OEM; however, it posted a 5% decline in smartphone shipments. Omdia said that this decline was likely kept to a minimum by the Galaxy S26 series. The latest series may have performed well, but Samsung was reportedly in crisis mode in March.

The Galaxy S26 saw record pre-orders, but that didn’t help its outlook. It was still estimated that Samsung’s smartphone profits would fall in 2026, and we’re seeing that here in Q2. This memory crisis is taking a toll on the phone industry as a whole. A Q2 market report showed a 4% global decline. Still, the Galaxy S26 series’ “resilient demand” helped Samsung post a 2% increase.

Android Central’s Take

This has “become the norm” in the industry. AI is causing a bit of a sitr in more ways than memory and storage issues. Some companies see the light at the end of the tunnel. That things will get better. Others are trying to buckle down and figure out a way to weather the storm. The issue is pricing. I’m sure we can all agree on that. Companies start struggling, and it’s often the consumer that gets the worst of it.