SK hynix Operating Profit Jumps 632% Year on Year as U.S. Futures Rise Ahead of Fed Decision

Key Facts

Record results from SK hynix lifted memory stocks and U.S. futures on Wednesday as investors awaited the Federal Reserve’s decision and earnings from major technology companies. The South Korean company reported a 328% increase in third-quarter 2026 revenue from the same period a year earlier, and a 632% rise in operating profit, according to its statement. On a quarterly basis, revenue rose 32% and operating profit increased 38% from the second quarter. In U.S. premarket trading, Micron rose 4% and U.S.-listed SK hynix shares jumped 7.8%, according to Reuters via Investing.com. At 09:11 Eastern Time, Nasdaq 100 futures were up 0.4%, compared with 0.2% for S&P 500 futures and 0.1% for Dow futures, according to Investing.com.

SK hynix linked its results to higher prices for key memory products amid growing demand for AI memory, as well as the competitiveness of its high-value products. The company said, “Prices of key products rose amid growing demand for AI memory.” It added that DRAM results benefited from increased sales of DDR5 for servers and the start of HBM4 shipments. In Seoul, the Kospi jumped 5.6% in early Asian trading, and Samsung Electronics shares rose 8.5%, according to the Associated Press. The agency noted that U.S. futures had edged lower during early Asian trading before later showing gains in figures tracked by Investing.com.

The Associated Press reported that SK hynix shares rose 7% in Seoul to their highest level in two weeks after the company reported record operating profit of 83.3 trillion won for the third quarter of 2026. The agency said profit was nearly seven times its level a year earlier, consistent with the company’s reported annual growth. The company’s shares, listed in EL7 data under the ticker SKHY, closed at $145.36 on October 27, compared with a close of $142.62 the previous day. The results put the company’s performance at the center of a rally in chip stocks that have benefited from demand linked to AI servers. SK hynix also said memory demand would remain above supply through 2030, citing the difficulty of advanced processes and the long time required to build new production facilities.

SK hynix expects HBM4 to exceed the previous generation, HBM3E, in shipment volume and revenue during the fourth quarter of 2026, and to become its main product. This follows the start of HBM4 shipments in the third quarter, according to the company’s statement, while its forecast points to the product taking a larger place in its business mix this quarter. The company also announced shareholder returns of about 100 trillion won during fiscal 2026. The plan includes cash dividends of at least 30 trillion won, and share buybacks and cancellations of at least 60 trillion won. SK hynix linked these steps to its strong results, while the returns program adds another element to its announcement alongside expansion of its AI memory products.

The Federal Open Market Committee meeting is scheduled for October 27 and 28, with the chair set to hold a news conference on October 28 at 2:30 p.m. Eastern Time, according to the Federal Reserve’s calendar. The meeting follows a 25-basis-point increase on September 17, when the federal funds target range reached 3.75%-4.00%. Reuters reported that market consensus leaned toward the committee holding off on raising rates in Wednesday’s decision, after the previous month’s increase, with the decision scheduled for 2:00 p.m. Eastern Time. The meeting outcome remains a focus for traders alongside earnings from major technology companies. Also scheduled for Wednesday is Microsoft’s announcement of first-quarter fiscal 2027 results, according to the company’s investor relations website.

Personal income and outlays data for September are due on October 29 at 8:30 a.m. Eastern Time, according to the U.S. Bureau of Economic Analysis. The release includes the Personal Consumption Expenditures Price Index, which investors track for an inflation reading. Core PCE for September, which excludes food and energy and is monitored by the Federal Reserve to gauge underlying inflation trends, is also scheduled for that day. The data release is the next milestone after the interest-rate decision and the committee chair’s news conference. The economic figures will add to the week’s calendar alongside companies’ results due during the week.