SK hynix (000660) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of KRW 79.3 trillion, up 51% quarter-on-quarter and 257% year-on-year, driven by robust AI infrastructure demand, DRAM and NAND price increases, and high-value product sales.

• Operating income reached KRW 60.54 trillion, up 61% quarter-on-quarter and 557% year-on-year, with an all-time high operating margin of 76%.

• Net profit surged to KRW 93.92 trillion, with a net profit margin of 118%, supported by significant non-operating gains.

• Cash and cash equivalents rose to KRW 88 trillion, with net cash expanding to KRW 69.4 trillion and borrowings decreasing by KRW 0.7 trillion to KRW 18.6 trillion.

• Secured long-term agreements with around 10 key customers, supporting business stability and growth.

Financial highlights

• DRAM ASP rose approximately 30% and NAND ASP increased by mid-50%, reflecting strong pricing across all products.

• Enterprise SSD revenue doubled quarter-on-quarter; Solidigm's high-capacity SSD revenue tripled.

• EBITDA was KRW 64.6 trillion with an EBITDA margin of 81%.

• Net non-operating profit reached KRW 62.2 trillion, including KRW 1.1 trillion FX gains and KRW 63.3 trillion from investment asset sales/valuation.

• Gross margin improved to 83% in Q2, up from 79% in Q1.

Outlook and guidance

• AI-driven memory demand is expected to remain strong, with DRAM demand projected to grow by mid-20% and NAND by high-teen percent year-over-year.

• DRAM shipments are expected to rise approximately 10% in Q3; NAND bit shipments to increase by low single digits quarter-on-quarter.

• Company plans continued investment in capacity expansion, including new fabs and advanced packaging lines.

• Multi-year contracts and technological innovation position the company for sustained structural demand growth.

• Maintains annual fixed dividend of KRW 1,500 per share through 2027, with potential for additional shareholder returns if free cash flow exceeds targets.