SK hynix Q3 Operating Profit Hits Record 83.3 Trillion Won

SK hynix posted record third-quarter revenue of 104.62 trillion won and operating profit of 83.33 trillion won, the South Korean memory chipmaker disclosed in a regulatory filing on Wednesday, as demand for high-bandwidth memory (HBM) used in AI infrastructure pushed its operating margin to 79.7%, the Seoul Economic Daily reported.

Record margin beats forecasts

According to the company’s results release, revenue rose 32% from the second quarter and 328% from a year earlier, while operating profit climbed 38% quarter on quarter and 632% year on year. Both figures topped the records of 79.32 trillion won in revenue and 60.54 trillion won in operating profit set in the second quarter.

The results beat market expectations. The Seoul Economic Daily said the FnGuide consensus, which averages brokerage forecasts from the past month, had pointed to revenue of 96.66 trillion won and operating profit of 75.97 trillion won, meaning actual revenue came in 8.2% higher and operating profit 9.7% higher. The 79.7% operating margin was about 1.1 percentage points above market estimates and compared with roughly 72% in the first quarter and 76.3% in the second, the newspaper said.

Net income for the quarter was 39.78 trillion won, up 216% from a year earlier, according to the release. SK hynix said cash and cash equivalents rose by 26.5 trillion won during the quarter to 114.5 trillion won, while borrowings fell to 15.8 trillion won, leaving net cash of 98.7 trillion won.

About 100 trillion won for shareholders

The chipmaker unveiled a 2026 shareholder return plan worth about 100 trillion won, made up of at least 30 trillion won in cash dividends and at least 60 trillion won in share buybacks and cancellations, including a 40 trillion won buyback announced in August. The company said that buyback was completed last week and the shares will be cancelled shortly, and that it aims to return 50% or more of free cash flow.

The board approved a third-quarter dividend of 20,000 won per share, totalling 14 trillion won, split between a 10,000 won earnings dividend and a 10,000 won special dividend tied to gains on its Kioxia investment. It also approved a 20 trillion won share repurchase, half of which will be cancelled and the rest used for employee compensation. SK hynix said buybacks will continue every quarter.

What’s next

SK hynix said memory supply is “not keeping pace with the growth of the market” and expects demand to exceed supply through 2030. It has signed long-term agreements with 14 major customers covering more than half of its production capacity for 2027 and 2028.

The company expects its HBM4 chips to overtake HBM3E in both shipments and revenue in the fourth quarter, and said its M15X plant will reach maximum capacity by year-end to lift HBM4 output. With the first phase of its Yongin site set for full-scale operation next year, SK hynix said investment is expected to rise significantly, though it will adjust the scale and timing flexibly. The figures released are preliminary and have not yet been finalised.

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