SK hynix Revenue Tops 100 Trillion Won for First Time as Operating Profit Hits Record
Key Facts
SK hynix posted record revenue of 104.6155 trillion won in the third quarter of 2026, surpassing 100 trillion won for the first time in its history, alongside operating profit of 83.3338 trillion won and net profit of 39.7756 trillion won, the company said in a statement. Revenue rose 32% from the previous quarter, and operating profit climbed 38%, while revenue increased 328% and operating profitability rose 632% year on year. Net profit grew 216% year on year, but fell 58% from the previous quarter. The results came amid strong demand for AI memory, while the indicators showed a divergence between strong operations and a quarterly decline in net profit. Available figures did not include the operating profit margin or net profit margin.
Revenue exceeded market expectations of 98.23 trillion won, according to FnGuide estimates cited by the Korea JoongAng Daily. Net profit of 39.7756 trillion won, by contrast, fell short of FnGuide's estimate of 61.29 trillion won, despite its annual growth. Yonhap also reported that net profit came in below the average analyst estimate in a Yonhap Infomax survey, without implying weakness across all performance measures. These comparisons put record revenue and operating results alongside a clear gap between net profit and some market estimates.
SK hynix attributed memory performance to higher sales of DDR5 servers as HBM4 shipments began to expand, as well as broader sales of 321-layer TLC eSSD modules. The company said the competitiveness of high-value products contributed to results amid growing demand for AI memory. The shipment mix reflects an expansion of memory products used in servers and storage, alongside the latest generation of high-bandwidth memory. The company expected HBM4 shipments and revenue to exceed those of HBM3E in the fourth quarter. It added that HBM4 would become a key product during that quarter, while it plans to ramp M15X plant output to full capacity by year-end.
The company expects the memory market imbalance to persist, with demand remaining above supply through 2030. It attributed that outlook to the complexity of advanced manufacturing processes and the lengthy time required to build new production facilities. SK hynix said long-term supply agreements with 14 major customers cover more than 50% of its production capacity for 2027 and 2028. Those agreements give the company visibility into a large share of output over the two years, while its forecast for the supply-demand gap extends through the end of the decade. It said it expects investment to increase significantly next year as the first phase of the Yongin plant begins full operations.
The board approved total third-quarter cash dividends of 14 trillion won, equivalent to 20,000 won per share, according to the company statement. The payout includes a special dividend of 10,000 won per share linked to gains from the company's investment in Kioxia. The board also approved a 20 trillion won share buyback; shares worth 10 trillion won will be canceled, while about 10 trillion won will be allocated for employee compensation. The company announced a 40 trillion won share buyback program in August, which was completed in the week before the results announcement.
The results strengthened the company's cash position, with cash and cash equivalents totaling 114.5 trillion won at the end of the quarter, up 26.5 trillion won from the end of the previous quarter. Loans fell 2.8 trillion won to 15.8 trillion won, lifting net cash to 98.7 trillion won. In the market, the stock closed down about 8% in Seoul on October 27, the eve of the results announcement, according to Aju Press. EL7 data showed the stock closing at $145.36 the same day. The company had said results would be released before 9:00 a.m. Seoul time on October 28, with its conference call set to begin at 9:00 a.m.