Samsung 2Q26: Five-Year Contracts Lock Supply, HBM4 Q3 Revenue +3x QoQ

English summary

Samsung 2Q26 revenue of KRW 171.5 trillion (QoQ +28%), operating profit of KRW 89.5 trillion (QoQ +56%); DS operating profit of KRW 89.2 trillion, memory revenue of KRW 120.8 trillion (QoQ +62%). Key takeaways from the earnings call: #1: Five-year contracts expected to cover 60%-70% of capacity. Long-term contracts have been signed with global Top 5 data center customers, with five others in final negotiations; after closing, DRAM and NAND long-term contracts are expected to cover 60%-70% of capacity. Contracts are based on five-year rolling renewals, with mutual constraints, prepayments, and price floors. The company expects no significant new supply before 2028, with the 2027 gap widening further versus 2026. #2: Memory volume and price continue to beat expectations. In 2Q, DRAM bit shipments +low teens QoQ, ASP +mid-40%; NAND bit shipments +low single digit QoQ, ASP +high-60%.