SK Hynix Posts Record Q3 Profit of 83.3 Trillion Won, Beats Estimates on AI Memory Surge

Key points

• Operating profit surged 632% year-over-year to 83.33 trillion won, exceeding the 76.72 trillion won estimate
• Revenue reached 104.62 trillion won, surpassing 100 trillion won for the first time in company history
• The company announced 100 trillion won in shareholder returns, including 30 trillion won in dividends and 60 trillion won in buybacks
• HBM4 is expected to surpass HBM3E in both shipments and revenue in Q4 as production ramps at the M15X facility
• Long-term agreements with 14 major customers cover more than 50% of 2027-2028 production capacity

Background

SK Hynix's results follow Samsung's record Q3 profit of 107.4 trillion won reported on October 8, which also benefited from AI memory demand but missed top-end estimates. The broader semiconductor sector has seen sustained AI-driven investment, with ASML raising its 2026 revenue forecast in October due to orders extending through 2030. SK Hynix had previously abandoned its Solidigm IPO in October due to market volatility, as noted in our October 23 coverage.

How outlets are covering it

CNBC emphasizes the sharp beat of analyst estimates and the scale of shareholder returns, highlighting the 632% year-over-year profit surge. The company's official press release via Yahoo Finance provides more granular detail on product mix, noting that DRAM results were driven by server DDR5 sales while HBM4 shipments began in earnest. The press release also details the financial structure, showing net cash increased to 98.7 trillion won, and explains the dividend breakdown, including a 10,000-won special dividend funded by Kioxia investment gains. Both sources agree on the core figures but differ in emphasis: CNBC focuses on the estimate beat, while the press release provides forward-looking guidance on capacity expansion and long-term agreements.

Why it matters

SK Hynix's record results confirm the strength of AI memory demand, with the company expecting supply shortages to persist through 2030. The 100 trillion won shareholder return signals confidence in sustained profitability, while long-term agreements covering over 50% of 2027-2028 capacity provide revenue visibility. The shift to HBM4 as the mainstream product in Q4 indicates continued technological advancement in AI infrastructure, reinforcing the sector's growth trajectory.

What to watch

SK Hynix expects HBM4 to surpass HBM3E in both shipments and revenue in Q4 as it ramps up production at its M15X facility in Cheongju. The company plans to significantly increase investment next year, with Yongin Phase 1 entering full-scale operation. It will continue to assess investment timing and financing options for Solidigm's growth, while executing the remaining share buybacks and dividends to fulfill its 50% free cash flow return target for 2025-2027.