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Revenue: KRW79.3 trillion, up 51% quarter on quarter and 257% year on year.

Operating Income: KRW60.5 trillion, up 61% quarter on quarter and 557% year on year.

Operating Margin: Improved by 5 percentage points to 76%.

EBITDA: KRW64.6 trillion with an EBITDA margin of 81%.

Net Profit: KRW93.9 trillion with a net profit margin of 118%.

Cash and Cash Equivalents: KRW88 trillion, an increase of KRW33.6 trillion from the previous quarter.

Interest-bearing Debt: Decreased by KRW0.7 trillion to KRW18.6 trillion.

Net Cash: Expanded to KRW69.4 trillion.

Debt-to-Equity Ratio: Improved by 5 percentage points to 7%.

DRAM ASP: Increased by approximately 30%.

NAND ASP: Increased by mid-50%.

Enterprise SSD Revenue: Increased twofold from the previous quarter.

Solidigm Revenue: Expanded more than three-fold from the last quarter.

Depreciation and Amortization: KRW4 trillion.

Pre-tax Profit: KRW122.7 trillion.

Release Date: July 29, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

SK hynix Inc (NASDAQ:SKHY) reported a record high revenue of KRW79.3 trillion for Q2 2026, marking a 51% increase quarter-on-quarter and 257% year-on-year.

The company achieved a significant increase in operating income, reaching KRW60.5 trillion, up 61% quarter-on-quarter and 557% year-on-year.

SK hynix Inc (NASDAQ:SKHY) has successfully expanded its sales of high-performance memory products, such as HBM3E and AI server DRAM, contributing to revenue growth.

The company has secured long-term agreements (LTAs) with around 10 key customers, ensuring mid- to long-term supply stability.

SK hynix Inc (NASDAQ:SKHY) has strengthened its financial position, with cash and cash equivalents increasing to KRW88 trillion and a reduced debt-to-equity ratio of 7%.

Negative Points

The company’s DRAM ASP growth in Q2 fell below market expectations due to changes in the product portfolio and shipment delays.

There are concerns about potential oversupply in the memory market due to SK hynix Inc (NASDAQ:SKHY)’s plans for significant capacity expansion.

The company faces challenges in improving the supply-demand balance in the near term due to the complexity of advanced processes and lead times for new facilities.

Competition in the HBM market is intensifying, with competitors making rapid progress, posing a challenge to SK hynix Inc (NASDAQ:SKHY)’s market leadership.

The company has not yet finalized plans for additional shareholder returns, despite increased cash position from recent ADR offerings and asset sales.

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Q & A Highlights

Q: Recently, some big tech companies are considering leasing data centers and more efficient AI models are emerging. How do you see AI infrastructure investment evolving, and what are the implications for demand for HBM, DRAM, and NAND? A: We view these developments as a transition towards higher utilization of existing AI infrastructure and accelerated monetization efforts. Investments aimed at strengthening AI capabilities are likely to remain solid. We expect AI-related investment to continue over the medium to long term, with memory demand expanding for HBM, server DRAM, and high-performance NAND.

Q: The company plans to significantly expand its capacity over the medium to long term. What is the basis for your long-term memory demand outlook, and does it include demand secured through long-term agreements? A: Our capacity strategy is based on structural growth in memory demand driven by AI expansion and discussions with key customers. The capacity expansion is aligned with confirmed customer demand, and we do not believe it will lead to oversupply. Investments will be executed in phases, considering demand visibility and investment efficiency.

Q: Could you provide more details on SK Hynix’s Long-Term Agreement (LTA) framework, such as contract term and pricing structure? A: LTAs are designed to be specific to each customer and product, typically with a five-year term. Pricing structures vary to address price volatility and enhance long-term business stability. The agreements include mechanisms like deposits to strengthen contract implementation and demand visibility, allowing us to optimize investment and production planning.

Q: DRAM ASP growth in the second quarter fell below market expectations. What are the reasons, and what is the outlook for the second half of the year? A: Changes in the product portfolio affected our blended ASP, but these factors are likely to ease in the second half. We expect higher bit growth and improved product mix, driven by HBM4 and 1c-nanometer DRAM shipments, leading to higher ASP and earnings in the second half.

Q: What is the competitiveness of SK Hynix’s HBM4, and what are the key differentiators that will enable the company to maintain its leadership in the HBM market? A: HBM4 competitiveness is achieved through performance, stable yield, and consistent quality. Our accumulated competitiveness in time to market, product performance, and customer trust are key differentiators. We are ramping up production capacity and preparing next-generation technologies like iHBM to sustain our leadership in the HBM market.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.