Samsung Biologics is expected to defer labor dispute-related costs to the third quarter as negotiations between management and labor remain unresolved. According to a July 13 report by Yonhap Infomax, the delay in cost recognition ensures the company will meet its second-quarter performance targets, though profitability pressure in the second half has intensified. The development follows a full-scale strike by the labor union in May, which the company estimates caused approximately 150 billion won in revenue losses. Some securities firms have lowered target prices in response, with analysts emphasizing that new contract wins in 2026 will be critical to offsetting the earnings impact.
Samsung Biologics Q2 2026 Earnings Forecast Meets Analyst Expectations
According to Yonhap Infomax Consensus (screen number 8031), three major domestic securities firms forecast Samsung Biologics' second-quarter standalone revenue at 1.308 trillion won and operating profit at 588.4 billion won over the past month. This represents year-on-year growth of 29.05% in revenue and 23.39% in operating profit compared to the same period last year.
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Samsung Biologics Q2 earnings forecast [Source: Yonhap Infomax Consensus]
All four plants (Plants 1-4) are currently operating at full capacity, and the high proportion of overseas sales combined with favorable exchange rate effects from a strong dollar contributed to expectations that second-quarter results will meet market forecasts.
Labor Strike Costs to Be Reflected in Q3 Financial Results
The labor union launched a full-scale strike in May, and the conflict continues as the gap between labor and management positions has not narrowed. The company estimates that production disruptions from the strike caused approximately 150 billion won in revenue losses. Accounting treatment related to the strike is expected to be reflected in the third quarter.
Lee Myung-sun, an analyst at DB Securities, stated that while maintaining investment opinion and target price based on favorable dollar exchange rates and stable orders, "earnings estimates for the second half may need to be revised due to prolonged labor discord and US plant cost recognition."
Shinhan Investment & Securities lowered its target price from 1.9 million won to 1.8 million won (a 5.2% reduction) after incorporating third-quarter revenue declines and estimated labor cost increases from next year onward into its projections. Korea Investment & Securities cut its target price by 13% to 1.95 million won, considering overall weakness in the bio sector.
However, securities firms believe the company can still achieve its annual revenue growth guidance of 15-20%, as production volumes deferred by the strike are expected to be fully absorbed within the year.
Analysts Adjust Target Prices Amid Labor Dispute and Sector Weakness
![Samsung Biologics stock price trend in 2026]()
Samsung Biologics stock price trend in 2026 [Source: Yonhap Infomax]
As second-half burdens are expected to grow, analysts point to the need for securing new orders to reverse sentiment. Samsung Biologics' new and expanded orders in the first half of 2026 totaled 570.4 billion won, with contract size increasing by approximately $170 million. This represents a slowdown compared to last year's annual order volume exceeding 6.8 trillion won. The last new order this year was a single contract signed with a European pharmaceutical company in March.
New Contract Wins Emerge as Key to Second-Half Recovery
Wi Hae-joo, an analyst at Korea Investment & Securities, explained that "the US plant is currently operating at 50% capacity and can accommodate new orders, and discussions on US-Korea linked production strategies are underway with potential clients who have conducted due diligence."
Analysts also anticipate potential stock price rebounds following new order wins. Lee Ji-won, an analyst at Heungkuk Securities, noted that while there is room for further downward revision of annual profit estimates if strike-related costs and performance bonus burdens materialize in the second half, "if new orders that slowed in the first half ramp up in the second half, the stock price will rebound significantly on the back of strike risk resolution and mid- to long-term CMO order growth prospects."
A Samsung Biologics official stated, "We will continue to strengthen CDMO competitiveness based on our three-pillar expansion strategy of capacity expansion, portfolio diversification, and geographic base expansion," adding, "We plan to further enhance order competitiveness in the global market with differentiated services that proactively respond to customer demand."
FAQ
What are Samsung Biologics' Q2 2026 earnings forecasts?
According to three major domestic securities firms surveyed by Yonhap Infomax, Samsung Biologics' second-quarter standalone revenue is forecast at 1.308 trillion won and operating profit at 588.4 billion won, representing year-on-year growth of 29.05% and 23.39% respectively.
Why did some analysts lower Samsung Biologics' target price?
Shinhan Investment & Securities lowered its target price from 1.9 million won to 1.8 million won after incorporating third-quarter revenue declines and estimated labor cost increases into projections. Korea Investment & Securities cut its target price by 13% to 1.95 million won, considering overall weakness in the bio sector and the impact of the prolonged labor dispute.
How much revenue loss did Samsung Biologics estimate from the May strike?
Samsung Biologics estimates that production disruptions from the labor union's full-scale strike in May caused approximately 150 billion won in revenue losses, with these costs expected to be reflected in third-quarter financial results.
