SK Hynix reported a record third-quarter operating profit of 83.3 trillion won, representing a seven-fold jump driven by booming demand for AI infrastructure and memory chips. Quarterly revenue exceeded 100 trillion won for the first time, reaching 104.62 trillion won. Capitalizing on high margins and gains from a Kioxia stock sale, the chipmaker unveiled plans to return roughly 100 trillion won ($75.5 billion) to shareholders in 2026 through dividends and buybacks. SK Hynix projects component shortages will persist through 2030.
Q3 2026 financial results
- ▪SK Hynix reported third-quarter 2026 net profit of 39.78 trillion won and achieved an operating margin of nearly 80 percent
- ▪SK Hynix reported third-quarter 2026 quarterly revenue of 104.62 trillion won, marking the first time its quarterly revenue exceeded 100 trillion won
- ▪SK Hynix reported a record third-quarter 2026 operating profit of 83.3 trillion won for July-September, a more than seven-fold increase from 11.4 trillion won a year earlier, beating LSEG SmartEstimate's 76.7 trillion won estimate by over 7 percent
Shareholder return plans
- ▪SK Hynix outlined plans to return approximately 100 trillion won ($75.5 billion) to shareholders in 2026, comprising at least 30 trillion won in cash dividends and 60 trillion won in share buybacks and cancellations
- ▪SK Hynix board approved a third-quarter 2026 dividend of 20,000 won per share, including a special dividend of 10,000 won per share tied to gains from selling stock in Kioxia Holdings Corp.
- ▪SK Hynix board approved 20 trillion won in share buybacks on October 28, 2026, designating 10 trillion won for share cancellation and 10 trillion won for employee compensation
Shelved initial public offerings
- ▪Data-center operators Firmus Grid Ltd. and AirTrunk also shelved initial public offerings as mounting artificial intelligence bubble concerns rattled global markets
- ▪SK Hynix producer Solidigm abandoned a potential $10 billion U.S. initial public offering following shareholder opposition and regulatory scrutiny, while entering talks with the U.S. Commerce Department regarding a $45 billion chip plant in the U.S.
Long-term customer contracts
- ▪SK Hynix is discussing contract term extensions beyond typical five-year durations with multiple customers to improve mid-to-long term demand visibility
- ▪SK Hynix has signed long-term agreements with 14 major customers covering more than 50 percent of its total production capacity for 2027 and 2028
Counterpoint Research earnings analysis
- ▪Counterpoint Research stated that SK Hynix's rapid quarterly earnings growth is significantly driven by price hikes in conventional DRAM and NAND memory chips
- ▪Counterpoint Research projected that SK Hynix's quarterly earnings upward trajectory will sustain at least through 2027
Memory supply to Nvidia
- ▪SK Hynix supplies high-bandwidth memory to Nvidia Corp. while capitalizing on soaring prices for conventional memory chips
- ▪Research by Macquarie noted that SK Hynix plays a key role in AI data center memory supply through its close collaboration with Nvidia Corp.
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