SK hynix Posts Record Operating Profit of 83.3338 Trillion Won in Third Quarter
Key Facts
SK hynix posted record revenue of 104.6155 trillion won and record operating profit of 83.3338 trillion won in the third quarter of 2026, according to preliminary results announced by the company on October 28. Net profit was 39.7756 trillion won, a record quarterly level, the company said. Demand for AI memory grew as prices for key products rose, two factors the company linked to its results. Operating profit exceeded the market consensus of 76.2605 trillion won by 9.3%, according to SBS coverage citing Yonhap Infomax data. But net profit came in below the average analyst forecast, Yonhap reported. The figures remain preliminary: the company said its review of the results was not complete and that they could change during the independent audit.
Revenue rose 32% and operating profit 38% from the second quarter, when revenue was 79.3187 trillion won and operating profit was 60.5426 trillion won. Year on year, revenue increased 328%, operating profit 632% and net profit 216%. By contrast, net profit fell 58% from the second quarter, from 93.9226 trillion won to 39.7756 trillion won. The quarter therefore combined strong sequential growth in revenue and operating profit with a decline in net profit from the previous period, while net profit remained far above its level a year earlier. The divergence does not change the company’s description of revenue and operating profit as records.
The company attributed higher prices for its key products to growing demand for AI memory, and said DDR5 server sales increased and HBM4 shipments began on a large scale. In NAND, sales expanded for eSSDs based on 321-layer TLC technology. These products position the company at the center of rising demand for server memory and storage linked to AI applications. SK hynix expects HBM4 shipments and revenue to exceed those of HBM3E in the fourth quarter of 2026, and HBM4 to become a key product starting that quarter. The company said it would raise operations at its M15X plant to full capacity by year-end to increase HBM4 production. It also aims for 321-layer NAND technology to account for more than half of domestic production capacity in the fourth quarter.
SK hynix expects memory demand to remain ahead of supply through 2030, a forecast the company attributed to the difficulty of advanced manufacturing technologies and the time needed to build new production facilities. As an indication of future supply arrangements, it said it had signed long-term agreements with 14 key customers. Contracted volumes cover more than 50% of production capacity for 2027 and 2028, while these agreements typically run for 5 years. The company is discussing contract extensions with some customers, according to its statement. The agreements provide a framework for supplying part of production capacity during the two years, as the company expects tight supply to continue through 2030. It linked that outlook to the difficulty of increasing advanced production and the time required to build new facilities.
The company is targeting shareholder returns of about 100 trillion won during fiscal 2026, including cash dividends of at least 30 trillion won and share repurchases and cancellations totaling at least 60 trillion won. It said the plan aligns with its commitment to return 50% or more of free cash flow to shareholders. The total includes a 40 trillion won share repurchase program announced by the company in August and completed the previous week, so the entire plan does not represent new returns approved now. The board approved a third-quarter cash dividend of 14 trillion won, equal to 20,000 won per share, including a special dividend of 10,000 won per share linked to investment gains from Kioxia. It also approved a 20 trillion won share repurchase; about 10 trillion won will be allocated to employee compensation, while 10 trillion won will be canceled. The company said shares from the previous repurchase program would be canceled soon.
The company strengthened its cash position at the end of the third quarter, with cash and cash equivalents at 114.5 trillion won, up 26.5 trillion won from the end of the previous quarter. Borrowings fell 2.8 trillion won to 15.8 trillion won, bringing net cash to 98.7 trillion won. These figures come alongside the cash dividend and repurchase approved by the board, and the broader fiscal 2026 returns plan. The company scheduled the announcement of its third-quarter results for October 28, 2026, before 09:00 a.m. Seoul time, with a conference call set for 09:00 a.m. the same day. It said the third-quarter results remain subject to an independent audit and that figures in the preliminary statement could change during the review.