Samsung shares slide as return plan delayed to January

Samsung Electronics reported the largest quarterly operating profit in its history on Thursday, October 29, but its shares fell after the company put off details of its remaining 2026 shareholder returns until a board meeting in late January 2027. The stock closed down 4.13% at 232,000 won after opening higher. Earlier in the session it had fallen as much as 6.6%. Investors had expected new payout measures and did not get them.en.yna.co.kr+1

Record profit, no new plan

Third-quarter operating profit reached 107.4 trillion won on revenue of 195.3 trillion won. Samsung said it is the first tech company to top 100 trillion won in a single quarter. The board approved a third-quarter dividend of 4,601 won per share, or 30 trillion won in total. Samsung still expects 2026 shareholder returns of 90 trillion to 110 trillion won. With 35 trillion won already paid or committed, 55 trillion to 75 trillion won remains. That money will go out through cash dividends and a large share buyback and cancellation program, with final amounts to be set in late January.news.samsung.com

The return target itself was first announced in August, and Samsung gave no hint of its next policy. "The market appeared to expect an additional buyback and/or dividend announcement, but the company deferred the decision until late January," CLSA analyst Sanjeev Rana told Reuters.koreatimes.co.kr+1

Chip miss and higher spending

Profit from the chip business was 106.5 trillion won, nearly all of the group total. That was slightly below the LSEG estimate of 107.3 trillion won. Samsung also raised its chip capital spending 62% this year, to 76.8 trillion won, and plans to spend more in 2027. Bloomberg reported that the chip profit miss and rising capex both weighed on sentiment. Samsung said its HBM supply for next year is sold out and that it has long-term agreements with 10 major customers. The mobile business, however, posted an operating loss as memory prices rose.lufkindailynews.com+2

SK Hynix contrast drags Kospi

Expectations were high going in. A day earlier, SK Hynix ↘ 7.95% beat estimates and laid out a plan to return about $45 billion more to shareholders. "SK Hynix did quite a lot more than expected yesterday … but Samsung Electronics hasn't really changed anything from the guidance it gave before," BNK Investment & Securities analyst Lee Min-hee said.bloomberg.com+1

Samsung's drop pulled the Kospi down 1.24% to 5,937.66, while SK Hynix rose 2.62%. The index fell below 6,000 one day after climbing back above it. "Investors have been so spoilt by the AI trade that a record result is now treated as the bare minimum rather than a reason to celebrate," eToro analyst Josh Gilbert told CNBC.cnbc.com+2