SK hynix (NASDAQ: SKHY) shares surged more than 8% to $157.88 in Wednesday’s premarket trading after the South Korean chipmaker reported record third-quarter earnings, with quarterly revenue exceeding KRW 100 trillion for the first time in its history.
The company reported third-quarter 2026 revenue of KRW 104.62 trillion, up 328% year over year, while operating profit jumped 632% to KRW 83.33 trillion. Its operating margin hit a record 80%, up from 47% a year earlier.
Both figures exceeded FnGuide’s consensus estimates. Revenue topped the KRW 98.23 trillion estimate, while operating profit surpassed the KRW 76.96 trillion forecast. Compared with the second quarter, revenue increased 32% and operating profit rose 38%.
Net profit reached KRW 39.78 trillion, up 216% year over year but down 58% from the previous quarter. That was approximately 35% below FnGuide’s KRW 61.29 trillion forecast. The company reported substantial non-operating losses, including foreign-exchange losses and declines in the valuation of investment assets.
SK hynix also announced plans to return approximately KRW 100 trillion ($75 billion) to shareholders for fiscal 2026 through dividends and share repurchases.
HBM4 Production and Higher Memory Prices Drive Record Earnings
SK hynix attributed its earnings growth to rising memory-chip prices and increased sales of high-value products used in artificial intelligence infrastructure.
During the quarter, shipments of server DDR5 memory rose more than 40% sequentially, while DRAM average selling prices increased by a high-20s percentage from the previous quarter. The company also began full-scale mass production and shipments of HBM4, its next-generation high-bandwidth memory used in advanced AI processors.
SK hynix expects HBM4 to overtake its predecessor, HBM3E, in both shipment volume and revenue during the fourth quarter. The company plans to increase production at its M15X facility to full capacity by year-end to meet demand.
Management also forecast sequential DRAM bit-shipment growth in the mid-20% range for the fourth quarter, supported by expanded production and a greater proportion of advanced memory products.
The company has signed long-term supply agreements with 14 major customers, including leading cloud-service providers, covering more than 50% of its planned production capacity for 2027 and 2028. The contracts include pricing arrangements that reflect market conditions within agreed ranges.
SK hynix expects memory demand to outpace supply through 2030, citing growing investment in AI infrastructure and long construction timelines for additional chipmaking facilities.
SK Hynix Announces KRW 100 Trillion Shareholder-Return Plan
Chief Financial Officer Kim Woo-hyun said the planned returns include at least KRW 30 trillion in cash dividends and KRW 60 trillion or more in share repurchases and cancellations.
The company plans to provide these returns in stages through its fiscal 2026 annual dividend payment, with the final amount subject to business conditions and company performance.
The repurchase commitment includes a KRW 40 trillion buyback announced in August and completed last week. SK hynix plans to cancel those shares.
The board also approved an additional KRW 20 trillion in share repurchases. Of that amount, KRW 10 trillion is earmarked for shareholder returns and will be cancelled. The remaining KRW 10 trillion is allocated to employee compensation and is excluded from the shareholder-return total.
Together, the completed KRW 40 trillion buyback and the shareholder-return portion of the new authorization account for approximately KRW 50 trillion of the planned KRW 60 trillion minimum. An estimated KRW 10 trillion in further repurchases would be required to meet that minimum. The company said additional purchases will require future quarterly board resolutions, with their scale determined by market conditions and company cash flow.
Separately, the board approved a third-quarter cash dividend of KRW 14 trillion, or KRW 20,000 per share. The payment includes a KRW 10,000 special dividend intended to share gains from the company’s investment in Japanese memory-chip maker Kioxia.
The plan follows SK hynix’s August commitment to return more than 50% of cumulative free cash flow generated during 2025–2027.
SK Hynix Stock Performance and Analyst Reactions
SK hynix’s premarket advance followed three consecutive regular-session gains through Tuesday, with its ADR recovering about 11.4% from its October 22 closing price of $131.69. Even at Wednesday’s premarket quote, the stock remained roughly 21% below its 52-week high of $199.87.
Separately, SK Hynix Tokenized bStocks (SKHYB) traded at $156.69, up 7% over the past 24 hours, according to CoinMarketCap. The tokenized instrument trades separately from the Nasdaq-listed ADR.
Following the earnings announcement, Needham raised its price target on SK hynix from $220 to $235 and maintained its Buy rating, citing stronger-than-expected memory performance and the company’s long-term supply outlook.
RBC Capital reiterated its Outperform rating and $200 price target, citing rising DRAM prices, expanding customer agreements, and the HBM4 production ramp.