Samsung's Record $58.6 Billion Quarter Stirs Internal Revolt Over Bonus Inequality as Stock Stalls
Published on 07/11/2026 at 16:17 | Redaktion boerse-global.de
Samsung Electronics has just delivered a quarterly profit that dwarfs the recent operating results of both Nvidia and Google — yet the company finds itself battling a stock slide and a brewing staff rebellion. The disconnect between stellar fundamentals and market sentiment has rarely been wider at South Korea's most valuable company.
The chip giant on July 7 released preliminary figures for the second quarter of 2026 that smashed even the most optimistic forecasts. Operating profit hit roughly 89.4 trillion won, or around $58.6 billion — nearly 19 times the year-earlier figure. Revenue reached 171 trillion won, a 129 percent surge from the same period last year. The semiconductor division, propelled by insatiable demand for high-bandwidth memory chips and AI-optimized storage solutions, accounted for the bulk of the bonanza.
But the stock reaction was anything but celebratory. On the day of the earnings preview, Samsung shares plunged as much as 10.1 percent in intraday trading, later closing 6.9 percent lower. The Kospi index also took a hit as other Korean tech names followed Samsung lower. Analysts pointed to a textbook "buy the rumor, sell the news" dynamic, with the blockbuster figures already baked into the share price. Others flagged growing unease over whether the AI-driven rally in chips can sustain its blistering pace. Samsung's stock had already gained 122.25 percent year-to-date and 372.56 percent over the prior twelve months, implying plenty of optimism was priced in.
By Friday, the stock had recovered some ground, closing at 285,000 won — a daily gain of 2.52 percent — but still finishing the week down 7.92 percent. That leaves it roughly 24 percent below the year-to-date high of 374,500 won touched in mid-June. Technical signals suggest near-term caution: the shares are trading 6.05 percent below the 50-day moving average of 303,340 won, while the 14-day relative strength index sits at a neutral 43.9. The 200-day moving average of 181,142 won, however, still offers a comfortable 57 percent buffer.
Should investors sell immediately? Or is it worth buying Samsung Electronics?
Internal Anger Over a 100-to-1 Bonus Gap
Behind the scenes, the profit gusher has ignited a fierce internal dispute. Under a collective bargaining agreement struck in May, employees in the red-hot memory chip division are in line for bonuses of up to 600 million won per person — roughly $392,000. Staff in the Device eXperience division, which makes smartphones, televisions and home appliances, face bonuses of just 6 million won, or about $3,900. That 100-to-1 ratio has sparked outrage.
Union membership among DX workers has surged, and a protest rally is scheduled for July 16 near Samsung's headquarters in Suwon. Workers from the non-chip business units are demanding a fairer slice of the group's record profits.
Analysts Stay Upbeat Despite the Pullback
The earnings miss on market expectations hasn't shaken analyst conviction. In a survey conducted on July 10, 34 analysts lifted their average 12-month price target to 504,597 won — implying upside of roughly 77 percent from the current level. A separate poll of 36 analysts produced a slightly lower consensus of 487,815 won, with individual estimates ranging from 210,000 to 850,000 won. The bulk of ratings remain at "buy" or "moderate buy."
Samsung is due to publish its full second-quarter report on July 30, when investors will get a breakdown of profit by division and eagerly awaited details on the mass production schedule for HBM4E memory chips and the certification process for the next generation of AI processors.
Catalysts on the Horizon
Beyond the earnings release, several developments could shift the narrative. On July 22, Samsung will host its next Galaxy Unpacked event in London, where it is expected to unveil the Galaxy Z Fold 8, the Z Flip 8, and a new Watch 9 series. The mobile unit will be looking to narrow its margin gap with the chips business.
Samsung Electronics at a turning point? This analysis reveals what investors need to know now.
Separately, industry chatter points to a potential price hike of up to 20 percent on DRAM chips, as supply constraints persist. There is also speculation that Samsung may pursue a secondary US listing, following rival SK Hynix's presence on the Nasdaq — a move that could broaden its investor base and improve liquidity.
For now, Samsung's record-breaking quarter has produced a paradox: huge profits, a falling stock, and a workforce divided by an unequal share of the spoils.
Ad
Samsung Electronics Stock: New Analysis - 11 July
Fresh Samsung Electronics information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
