Revenue rose 32% from the second quarter, with DRAM bit shipments increasing around 10% and server DDR5 shipments growing more than 40%. Average DRAM selling prices climbed as conventional memory became more expensive, and SK Hynix began mass shipping HBM4, which commands higher prices than the previous generation. NAND bit shipments declined slightly as the company concentrated on higher-value enterprise storage products, while stronger market prices and a larger share of SSD sales lifted average selling prices. SK Hynix expects HBM4 to overtake HBM3E in both shipment volume and revenue within its HBM business during the fourth quarter.
The Won Weighs on Earnings
CFO Kim Woo-hyun said the stronger won held back operating earnings, although he did not put a separate figure on that effect. A stronger won reduces the won value of an unchanged dollar sale, whereas exchange differences can also arise when foreign-currency receivables are settled at a different rate. The company also recorded an 11.6 trillion won foreign-exchange-related net loss below operating profit, alongside 22.9 trillion won in losses from the valuation of investment assets. After other non-operating items, net non-operating expenses totalled 32.6 trillion won, bringing pretax income down to 50.7 trillion won from the 83.3 trillion won operating result.
Investment Gains Distort the Comparison
Operating profit rose 38% from 60.5 trillion won in the second quarter, while net income fell 58% to 39.8 trillion won; net income was still up 216% from a year earlier. The previous quarter’s 93.9 trillion won net profit had included 62.2 trillion won in net non-operating gains. Gains from investment-asset sales and valuations contributed 63.3 trillion won before other non-operating items in that quarter. Foreign exchange had also moved in the company’s favor, generating a net gain of 1.1 trillion won.
Customers Commit to Longer Contracts
SK hynix has signed long-term agreements with 14 major customers, including global cloud providers, covering more than half of its production capacity for 2027 and 2028. Prices generally move with market conditions within a range agreed with each customer, and the contracts include safeguards such as deposits to support actual orders and shipments. Management said the agreements typically run for five years and that some customers are discussing extensions, while production capacity outside those commitments remains available for changing demand and next-generation products.
Expansion and Shareholder Payouts
SK hynix expects capital spending to rise significantly in 2027 as its first Yongin fabrication plant enters operation and domestic and overseas infrastructure investment accelerates. The company forecasts supply shortages through 2030 but plans to open clean rooms in stages and adjust equipment installation and production ramp-ups to customer demand and profitability. It ended September with 98.7 trillion won in net cash, and the board approved a 14 trillion won third-quarter cash dividend alongside a 20 trillion won share buyback. Half of those shares are intended for cancellation, and the other half is earmarked for employee compensation and excluded from the shareholder return total.
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Source: https://news.skhynix.com/en/q3-2026-business-results/
