The numbers for the quarter
SK hynix announced record quarterly results on Wednesday, with operating profit up 38% from the previous quarter to 83.33 trillion won and an operating margin close to 80%, according to The Korea Herald. Revenue rose 32% to 104.62 trillion won, exceeding the 100 trillion threshold for the first time, while net profit stood at 39.78 trillion won.
The company attributes the growth to strong demand for memory for artificial intelligence applications. The operating margin close to 80% is the figure that best measures profitability for the period: at the same revenue level, it indicates that operating costs absorb a small share of receipts.
The shareholder return plan
For 2026, SK hynix plans to distribute about 100 trillion won (approximately $75.5 billion) to shareholders. The plan calls for at least 30 trillion won in cash dividends and at least 60 trillion won in share buybacks and cancellations, with the stated goal of returning at least 50% of free cash flow.
The annual buyback total includes the 40 trillion won program announced in August and completed last week: those shares will be cancelled shortly. On Wednesday, the board approved an additional 20 trillion won in buybacks, of which 10 trillion won will be cancelled under the remuneration program and the remaining 10 trillion won reserved for employee compensation and therefore excluded from the total allocated to shareholders.
The board also approved a third-quarter dividend of 20,000 won per share, including a special dividend of 10,000 won tied to the Kioxia investment. SK hynix said it will return to shareholders this year most of the gains realized from that investment.
Demand, contracts and production capacity
The results are underpinned by sales of HBM4, the advanced memory used in AI processors, and of DDR5 for servers. SK hynix expects HBM4 to surpass HBM3E in both shipment volume and revenue in the fourth quarter.
The company also said that long-term agreements with 14 major customers cover more than 50% of production capacity for 2027 and 2028, with pricing mechanisms that reflect market conditions within agreed ranges. SK hynix expects memory demand to exceed supply until 2030 and plans to increase investments significantly next year, when its first Yongin plant will reach full operation.
What remains to be verified
The picture outlined by the source concerns the company's forecasts and commitments: contractual coverage of more than 50% of 2027-2028 capacity, the supply-demand imbalance until 2030 and HBM4 overtaking HBM3E in the fourth quarter are statements by SK hynix, not results already achieved. The actual execution of the announced buybacks and cancellations and compliance with the goal of returning at least 50% of free cash flow remain to be verified in upcoming quarterly reports. The material does not provide details on results in Europe or comparisons with competitors.
