SK hynix Revenue Reaches 104.6155 Trillion Won, Operating Profit 83.3338 Trillion
Key Facts
SK hynix reported revenue of 104.6155 trillion won in the third quarter of 2026, topping 100 trillion won in a single quarter for the first time, while operating profit reached a record 83.3338 trillion won. Net profit was 39.7756 trillion won, according to preliminary results published by the company on October 28. The company attributed the record performance to higher prices for key products and growing demand for AI memory. The operating margin was 80%, while the net profit margin reached 38%. The company said its review of the results was not yet complete and that the figures could change during the independent audit.
Quarter on quarter, revenue rose 32% and operating profit increased 38%, while net profit fell 58%. Year on year, revenue rose 328% and operating profit increased 632%, according to the company’s table. The contrast between operating growth and the quarterly decline in net profit stands out in the results. Before the results were announced, the company’s shares rose 7% in trading on Tuesday, October 27, as South Korean chipmakers’ shares advanced after gains in U.S. AI stocks and the release of strong economic growth data, according to the Associated Press. The shares closed at 145.36 that day, according to EL7 data.
SK hynix said higher sales of server-specific DDR5 memory and the start of large-volume HBM4 shipments supported its DRAM business during the quarter. In NAND, sales expanded for eSSD units based on 321-layer TLC technology. The company expects HBM4 to become its main product in the fourth quarter, surpassing HBM3E in shipment volume and revenue. To meet demand, it aims to raise production at its M15X plant to full capacity by year-end. It also plans to increase the share of 321-layer NAND technology to more than half of its domestic production capacity in the fourth quarter, supporting supplies of high-performance, high-capacity eSSD units.
The company expects the memory shortage to continue through 2030, saying demand will remain above supply because of the difficulty of advanced manufacturing technologies and the long time needed to build new production facilities. In this context, it signed long-term supply agreements with 14 major customers. The agreed volumes cover more than 50% of its total production capacity for 2027 and 2028. These contracts provide advance visibility into a large share of production in those two years. The supply plans come alongside capacity expansion to keep pace with demand for advanced memory products.
SK hynix approved an investment of about 54 trillion won in August to build the Y2 plant in Yongin and the M17 plant in Cheongju. The first cleanroom at M17 is scheduled to open in December 2028, followed by the Y2 cleanroom in June 2029. The company said its investments would rise substantially in 2027 as the first phase of the Yongin project reaches full operation and infrastructure investment accelerates at home and abroad. It added that it would balance the scale and timing of spending against demand, profitability and investment efficiency. The cleanroom opening dates show that its capacity expansion plan extends beyond the period covered by current supply agreements.
The company ended the third quarter with 114.5 trillion won in cash and cash equivalents, up 26.5 trillion won from the end of the previous quarter. Loans fell 2.8 trillion won to 15.8 trillion won, while net cash stood at 98.7 trillion won. On shareholder returns, SK hynix is targeting about 100 trillion won for fiscal 2026, including cash dividends of at least 30 trillion won and a combined total of at least 60 trillion won in share buybacks and cancellations, including the 40 trillion won announced in August. The board approved a third-quarter dividend of 20,000 won per share. It also approved a 20 trillion won share buyback, of which 10 trillion won earmarked for shareholder returns will be canceled, while the remaining roughly 10 trillion won will go toward employee compensation.