SK Hynix — 2026Q3 earnings
reported 2026-07-29
EPS $90.62 vs $4.87 est — beat
next session +17.5% (close 2026-07-29 → 2026-07-30)
Source
Press release ↗Summary
An all-time-high quarter on every line — revenue of 79.3 trillion won (up 257%) and operating profit of 60.5 trillion won at a 76% margin — as supply-constrained AI-server demand met rising HBM, DRAM and eSSD prices, swinging the balance sheet to a 69.4 trillion won net cash position. The boom is being converted into contracted revenue, with long-term agreements finalized with around 10 customers and more in discussion, while HBM4 began mass shipments in Q2 with a full ramp planned for the second half. On the call, management guided Q3 DRAM bit shipments up roughly 10% with NAND up low single digits, raised 2026 capex to the high-KRW 40 trillion range to pull forward M15X and Yongin Phase 1, and deferred specifics on additional shareholder returns to later in the year.
Earnings call
Earnings call webcast ↗Review
From the report
SK hynix's Q2 2026 (reported July 29, 2026) was an all-time-high quarter on every line — 79.3 trillion won revenue, 60.5 trillion won operating profit at a 76% margin — powered by AI-server HBM, DRAM and eSSD pricing; the company converted the boom into a 69.4 trillion won net cash position, locked in roughly 10 customer long-term agreements, and began HBM4 mass shipments while promising capex discipline.
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Record quarter across the board: revenues of 79.3187 trillion won, operating profit of 60.5426 trillion won (76% operating margin), and net profit of 93.9226 trillion won (118% net margin) — an all-time high quarterly performance. show quote
“SK hynix Inc. (or “the company”, www.skhynix.com) announced today that it has recorded 79.3187 trillion won in revenues, 60.5426 trillion won in operating profit (with an operating margin of 76%), and 93.9226 trillion won in net profit (with a net margin of 118%), marking an all-time high quarterly performance.”
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Growth is extreme even against a strong base: revenue up 257% and operating profit up 557% year-over-year, and cumulative first-half revenue crossed the 100 trillion won mark for the first time in company history. show quote
“Consequently, cumulative revenue for the first half of the year crossed the 100 trillion won mark for the first time in company history. Revenue and operating profit increased by 257% and 557% year-over-year, respectively.”
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The balance sheet swung sharply stronger: cash and equivalents reached 88 trillion won (up 33.6 trillion won quarter-over-quarter), total debt fell 0.7 trillion won to 18.6 trillion won, and net cash expanded to 69.4 trillion won. show quote
“On the back of these strong operational results, cash and cash equivalents reached 88 trillion won at the end of the second quarter, an increase of 33.6 trillion won from the previous quarter. Total debt decreased by 0.7 trillion won to 18.6 trillion won, expanding the net cash position to 69.4 trillion won.”
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SK hynix is converting the AI demand surge into contracted, multi-year revenue: Long-Term Agreements are finalized with around 10 customers, with further discussions ongoing with major industry clients. show quote
“The company has finalized Long-Term Agreements (LTAs) with around 10 customers, including key strategic partners, and is continuing further discussions with major industry clients.”
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The next product cycle is already in motion: HBM4 mass shipments began in the second quarter with a production ramp planned for the second half, and HBM4E completed sample shipments in the first half. show quote
“The company began mass shipments of HBM4 in the second quarter and will ramp up production in the second half of the year. For HBM4E, which completed sample shipments in the first half, the company applied optimal processes featuring technology maturity and mass-production stability.”
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From the call
On the July 29 call, management framed the record quarter as supply-constrained AI demand meeting rising prices, and put numbers on what comes next: Q3 DRAM shipments up roughly 10% quarter-over-quarter with NAND up low single digits, a full HBM4 ramp in the second half, and 2026 capex raised to the high-KRW 40 trillion range as M15X and Yongin are pulled forward — while deferring specifics on additional shareholder returns to later in the year.
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Management confirmed the record top line — Q2 revenue up 51% quarter-on-quarter and 257% year-on-year to KRW 79.3 trillion — attributing it to AI-driven price strength in both DRAM and NAND. show quote
“As a result, second quarter revenue increased by 51% quarter-on-quarter and 257% year-on-year, reaching KRW 79.3 trillion, marking a record high revenue following the previous quarter.”
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Q3 guidance: DRAM bit shipments expected to grow approximately 10% from Q2, focused on server products, with NAND bit shipments up a low single-digit percent quarter-on-quarter. show quote
“For the third quarter, DRAM shipments are expected to increase by approximately 10% from that of Q2 as we actively respond to demand with focus on server products. For NAND, we plan bit shipment increase of low single-digit percent quarter-on-quarter.”
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HBM4 moved into mass production shipments in Q2, with a full-fledged production ramp planned for the second half of the year. show quote
“We began mass production shipments in Q2 and plan full-fledged ramp up of production in the second half of the year.”
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Capex is being raised to fund the pull-forward of M15X and Yongin Phase 1: 2026 capital expenditure is now expected to reach the high KRW 40 trillion range. show quote
“Due to the schedule acceleration and investment expansion, our 2026 CapEx is expected to reach the high KRW 40 trillion range.”
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as of 2026-08-10