SK Hynix reported its strongest quarterly results to date for the July-September 2026 period on October 28 in Seoul. Revenue reached KRW 104.6155 trillion while operating profit hit KRW 83.3338 trillion, both records under K-IFRS consolidated figures.
Financial Performance in Q3 2026
Revenue rose 328 percent from the same quarter in 2025 and 32 percent from the prior quarter. Operating profit climbed 632 percent year over year and 38 percent sequentially, producing an operating margin near 80 percent. Net profit totaled KRW 39.7756 trillion, up 216 percent from a year earlier despite a sequential decline.
These figures exceeded analyst consensus estimates for operating profit by roughly KRW 6-7 trillion. The company also approved a Q3 dividend of KRW 20,000 per share, distributing KRW 14 trillion to shareholders. For the full fiscal year, SK Hynix plans shareholder returns of approximately KRW 100 trillion through dividends and share buybacks.
Results mark the sixth straight quarter of record revenue and operating profit since Q2 2025. The company is a major supplier of high-bandwidth memory to Nvidia and other AI accelerator makers.
HBM and AI Chip Demand Drive Results
Shipments of HBM4, the sixth-generation high-bandwidth memory product, ramped sharply during the quarter. Server DDR5 sales and enterprise SSD volumes also grew as data center operators expanded AI infrastructure. Memory prices rose across product lines because supply remained tight relative to demand from cloud providers and chip designers.
SK Hynix signed long-term agreements with 14 major customers that cover more than half of planned 2027 and 2028 output. Virtually all current DRAM and HBM capacity is already committed through 2029. Industry reports indicate HBM demand exceeds current supply by more than double, a gap expected to persist into 2030.
The M15X fabrication facility is scheduled to reach full capacity by the end of 2026, supporting further HBM4 volume increases. HBM4 is projected to become the company’s largest revenue contributor in the fourth quarter.
Capacity Expansion and Shareholder Returns
SK Hynix continues to prioritize high-value products including the 1c DRAM process node and specialized AI server memory modules. Management stated that traditional seasonal strength in the fourth quarter should support additional growth.
Proceeds from the Kioxia investment have contributed to the KRW 100 trillion shareholder return program. The stock rose approximately 11 percent on the day after the earnings release, reflecting investor focus on sustained AI-related memory demand.
Frequently asked questions
What was SK Hynix operating profit in Q3 2026?
SK Hynix reported operating profit of KRW 83.3338 trillion for the July-September 2026 quarter, a record under K-IFRS rules and up 632 percent from the prior year.
Why did SK Hynix revenue exceed KRW 100 trillion in Q3?
Strong shipments of HBM4 and server DDR5 memory, combined with higher average selling prices from AI data center demand, pushed quarterly revenue to KRW 104.6155 trillion.
How long is SK Hynix capacity committed?
Long-term agreements with 14 customers have effectively sold out DRAM and HBM production through 2029, with more than half of 2027-2028 output already allocated.
What dividend did SK Hynix approve for Q3 2026?
The board approved a dividend of KRW 20,000 per share for the third quarter, totaling KRW 14 trillion, as part of a larger KRW 100 trillion shareholder return plan for the fiscal year.
By YasTech Editorial
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