SK hynix Operating Profit Reaches 83.3338 Trillion Won in Third Quarter
Key Facts
SK hynix reported record preliminary third-quarter results on October 28, with operating profit of 83.3338 trillion won and net profit of 39.7756 trillion won. Revenue came to 104.6155 trillion won, while the operating margin reached 80%, according to the company. Revenue rose 32% and operating profit 38% compared with the second quarter. The performance put the company’s third-quarter results above its previous records, amid growing demand for AI memory. SK hynix said prices for its key products rose "on the back of growing demand for AI memory."
The year-on-year comparison shows the scale of the jump: revenue rose 328% and operating profit 632% from the third quarter of 2025. Comparative revenue was 24,448.9 billion won, and operating profit was 11,383.4 billion won. Quarter on quarter, revenue rose from 79.3187 trillion won in the second quarter to its new level, while operating profit climbed from 60.5426 trillion won. The 80% operating margin indicates the scale of profits generated by operations during the quarter. The company attributed the performance to higher prices for key products as demand grew for memory used in AI applications.
The company said demand growth coincided with increased sales of DDR5 chips for servers and the start of large-scale HBM4 shipments. SK hynix expects HBM4 to become its main product from the fourth quarter of 2026 and to surpass HBM3E in shipment volume and revenue during the same quarter. It also plans to raise operations at its M15X plant to full capacity by year-end. Long-term supply agreements cover more than 50% of the company’s production capacity for 2027 and 2028, according to its statement. These agreements give the company supply commitments extending beyond this year, alongside its plans to increase production.
On the balance sheet, cash and cash equivalents stood at 114.5 trillion won at the end of the third quarter, up 26.5 trillion won from the end of the previous quarter. Loans fell 2.8 trillion won to 15.8 trillion won, bringing net cash to 98.7 trillion won. The company announced shareholder returns of nearly 100 trillion won in 2026, including cash dividends of at least 30 trillion won and share buybacks and cancellations worth at least 60 trillion won. For the third quarter alone, the board decided to distribute 14 trillion won in cash and buy back shares worth 20 trillion won. The company said shares worth 10 trillion won from the buyback program would be canceled in full, while shares worth about 10 trillion won would be used to compensate employees.
The results came amid a rally in South Korean chip stocks on October 27. The KOSPI rose more than 4% during the session and was up 3.6% at 5,667.99 points by midday, according to the Associated Press. SK hynix shares rose 7%, while Samsung Electronics shares gained 4.8% that day. The stocks had come under pressure earlier in the month; The Korea Times reported that Samsung Electronics and SK hynix shares fell 23.9% and 31.5%, respectively, during a seven-session sell-off. The report noted that the decline came despite higher earnings forecasts driven by AI demand and tight supply.
The market is awaiting Samsung Electronics’ third-quarter results, scheduled for release on October 29, 2026, at 10 a.m. Korea time, according to the company’s investor relations page. The announcement comes a day after SK hynix reported its results and offers another reading on the performance of South Korean chipmakers during the quarter. EL7 data showed SK hynix shares closed at 145.36 on October 27, 2026, without specifying a price unit. Samsung’s conference on the third-quarter results is scheduled for the same time. The upcoming results are the next milestone in tracking the effect of demand for AI memory on the sector.