SK Hynix Reports Q2 Revenue of 79.3 Trillion Won, Up 257% Year-on-Year, Operating Profit Hits Record High of 60.5 Trillion Won but Falls Short of Expectations
SK Hynix has released its financial report for the second quarter of fiscal year 2026, reporting revenue of 79.3 trillion won (approximately $52.9 billion), a year-on-year increase of 257% and a quarter-on-quarter increase of 51%. Operating profit reached 60.5 trillion won (approximately $40.3 billion), up 557% year-on-year and 61% quarter-on-quarter, with an operating profit margin of 76%. Net profit stood at 93.9 trillion won (approximately $62.6 billion), with a net profit margin of 118%, which includes a one-time gain of approximately 62.2 trillion won from the sale of Kioxia shares. For the first half of the year, cumulative revenue has surpassed 100 trillion won for the first time. Despite achieving a record high for a single quarter, the results fell short of market expectations of 83.9 trillion won in revenue and 64.2 trillion won in operating profit, leading to a more than 5% drop in ADR after the earnings report was released. The growth in performance was driven by an increase in both volume and price of high-performance AI products (such as HBM and eSSD). HBM4 has begun mass production and shipping in the second quarter, with plans to expand production in the second half of the year; samples of HBM4E have been delivered. The company has finalized long-term supply agreements (LTA) with about 10 customers, securing approximately 50% of its sales. As of the end of the quarter, cash and cash equivalents reached 88 trillion won, with a net cash position of 69.4 trillion won. The company expects capital expenditures in 2026 to reach the upper end of the range of 40-50 trillion won, and is advancing the mass production of the Cheongju M15X and the construction of the Yongin cluster.
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