SK hynix: Fiscal 2Q26 Financial Results
Revenue at ₩79.3187 trillion, up 50% QoQ and up 257% YoY
This is a Press Release edited by StorageNewsletter.com on July 30, 2026 at 2:01 pmSummary:
- Reports revenues of 79.3187 trillion won, operating profit of 60.5426 trillion won, net profit of 93.9226 trillion won
- Record-breaking quarterly performance driven by high-value product sales amid strong AI demand; cumulative first-half revenue surpasses 100 trillion won for the first time
- Long-term agreements with around 10 key customers; multi-year contracts and technological innovation address structural demand growth
- HBM4 achieves customer-required operating speeds, industry-leading power efficiency, and cost competitiveness, demonstrating differentiated technological edge
- Company to reinforce production capacity and financial health simultaneously by preparing for mid-to-long-term growth opportunities while adhering to CapEx discipline
SK hynix Inc. announced 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.
Driven by sustained demand growth from expanding AI infrastructure investments, high-performance products for AI servers led price increases, enabling the company to surpass its previous record set in the prior quarter. 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% YoY, respectively.
- Q2 2025: Revenue of 22.232 trillion won, Operating Profit of 9.2129 trillion won
- Q1 2026: Revenue of 52.5763 trillion won, Operating Profit of 37.6103 trillion won
Both DRAM and NAND flash memory prices experienced significant quarter-over-quarter increases. SK hynix achieved top-tier profitability by expanding sales centered on high-value-added products, including HBM, DRAM for AI servers, and eSSD.
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. The company evaluated that its financial flexibility has significantly strengthened, supported by record-high profit levels and cash generation capability.
As AI evolves into agentic forms that perform complex tasks on behalf of users and expands across various services, the underlying demand base for memory is broadening. Consequently, a structural shift is occurring where demand for both AI memory and conventional memory is expanding in tandem.
With major tech companies increasing their AI infrastructure investments, additional supply requests continue to mount. As these investments are supported by revenue generated from AI services, the momentum in memory demand is expected to persist.
Based on this demand outlook, SK hynix is expanding multi-year contract discussions with customers to secure mid-to-long-term supply stability. 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. Through these efforts, SK hynix aims to enhance operational efficiency while strengthening its mid-to-long-term business stability and sustainable growth foundation.
As AI models advance, the scope of memory competitiveness is expanding into system architecture and packaging. SK hynix plans to lead memory innovation from a system perspective, leveraging its comprehensive product portfolio and co-development capabilities with customers.
HBM4 has demonstrated its differentiated technological edge by achieving customer-required operating speeds while delivering industry-leading power efficiency and cost competitiveness. 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.
SK hynix plans to continue its leadership in the HBM sector based on its comprehensive strength, including superior quality, stable supply capabilities based on high yield, cost competitiveness, and industry-leading performance.
Sales of SOCAMM2 grew significantly in the second quarter, and shipments of products based on 10nm-class 6th generation (1c) process technology began in earnest.
In NAND, SK hynix is accelerating its transition to advanced process nodes to strengthen its portfolio around high-capacity and high-performance products. 321-layer products already represent the largest share of total production, and the company plans to expand this to approximately 50% of domestic production capacity by the end of the year.
In a market environment where customer demand exceeds supply capabilities, the ability to deliver requested volumes in a timely manner has emerged as a core business competitiveness.
In response, SK hynix is accelerating the mass production schedule for M15X while making investments to rapidly expand production capacity following the opening of the Yongin Phase 1 cleanroom in early 2027. Mid-to-long-term investment plans—including the recently announced P&T7 advanced packaging facility, M17 NAND production base, and the development of a new semiconductor cluster—will be executed in phases based on customer demand and investment efficiency.
SK hynix emphasized that it will reinforce both its production capacity and financial health by seamlessly preparing for mid-to-long-term growth opportunities while maintaining capital expenditure discipline (CapEx Discipline).
Comments
SK hynix has just reported outstanding Q2 2026 financial results, posting revenue of ₩79.32 trillion, together with exceptional operating and net profits, marking the strongest quarterly performance in the company's history. Revenue surged 257% YoY, while, for the first time ever, cumulative first-half revenue exceeded ₩100 trillion, highlighting the extraordinary pace of the company's expansion. Sequential growth also remained remarkable, with revenue rising 51% and operating profit increasing 61% compared with Q1 2026, clearly illustrating the strength of AI-driven demand and current memory market dynamics.
This performance is fueled by the ongoing AI memory supercycle. Prices for both DRAM and NAND increased significantly during the quarter, while SK hynix continued to expand shipments of high-value products, including HBM, AI server DRAM, and enterprise SSDs, reinforcing its leadership in the premium memory segment.
Beyond the impressive financial results, the company is executing a long-term strategy rather than simply benefiting from a temporary market upswing. Multi-year agreements signed with ten major customers provide strong revenue visibility while demonstrating customers' confidence in SK hynix's technology roadmap. On the product side, HBM4 has achieved customer-required performance with industry-leading power efficiency and competitive manufacturing costs. Mass shipments began in Q2, with production expected to ramp significantly during the second half of the year, while HBM4E sample deliveries were completed during the first half. Capacity expansion also continues across the portfolio: SOCAMM2 shipments are growing rapidly, products based on the 1c DRAM node have entered volume production, and 321-layer NAND has become the company's primary manufacturing technology, expected to account for roughly half of domestic production capacity by year-end. At the same time, SK hynix is preparing for the next phase of growth with the M15X fab expansion, the Yongin Phase 1 cleanroom scheduled to begin operations in early 2027, the P&T7 advanced packaging facility, and the M17 NAND manufacturing base, while maintaining a disciplined approach to capital expenditures.
The company's recent Nasdaq listing further reflects its global ambitions. Although SK hynix has been listed on the Korea Exchange for decades, the US listing broadens its international investor base and increases its visibility among global technology leaders. Equally noteworthy is the recent IPO of China's Changxin Memory Technologies (CXMT). The company debuted this week on Shanghai's STAR Market, raising 57.92 billion yuan (approximately $8.6 billion), with its shares soaring nearly 466% on the first day of trading. At its peak, CXMT reached a market capitalization of roughly 3.3 trillion yuan, briefly becoming China's most valuable listed company, ahead of ICBC. The transaction represents the largest IPO in Asia so far in 2026 and the biggest mainland Chinese listing since Agricultural Bank of China's landmark flotation in 2010, underscoring the strategic importance of the memory industry and the intensifying competition among Asian semiconductor leaders.
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