SK Hynix says AI memory demand has sold out its supply for years ahead — and it plans to return about $75 billion to shareholders.
October 28, 2026 — SK Hynix has reported a record third quarter and a shareholder-return plan of about 100 trillion won, about $75 billion according to Reuters. The South Korean chipmaker announced the results on October 28, 2026, in Seoul.
Image: Rows of glowing memory chips above a semiconductor plant at dawn. Credit: AI-generated illustration / Red Eye Eagle News.
Editor's Highlight: The headline is not only the record profit. It is the supply claim behind it: SK Hynix says high-bandwidth memory and DRAM are sold out until 2029, with demand for the AI memory running at double what it can supply.
Table of Contents
- A Record Quarter on AI Memory Demand
- What Drove the Beat: HBM4, Server DRAM and NAND
- The $75 Billion Shareholder Return Plan
- Sold Out Through 2029
- Cash, Capacity and What to Watch
- Bottom Line
- FAQ
- Sources
Key Facts
| Detail | Information |
|---|---|
| Company | SK Hynix Inc. (KRX: 000660) |
| Period | Q3 2026, July to September 2026 |
| Revenue | 104.6155 trillion won, up 327.9% year on year |
| Operating profit | 83.3338 trillion won, up 632.1% year on year |
| Net profit | 39.7756 trillion won, up 216% year on year |
| Shareholder returns | About 100 trillion won (about $75 billion, per Reuters) |
| Cash position | 114.5 trillion won in cash; net cash 98.7 trillion won |
| Supply outlook | HBM and DRAM sold out until 2029, per the company |
A Record Quarter on AI Memory Demand
Revenue reached 104.6155 trillion won, the first quarter in the company's history above 100 trillion won. Operating profit reached a record 83.3338 trillion won. Revenue rose 327.9% year on year, and operating profit rose 632.1% year on year, against 11.3834 trillion won of operating profit in the third quarter of 2025.
Quarter on quarter, revenue rose about 32% and operating profit about 38%, from revenue of 79.3187 trillion won and operating profit of 60.5426 trillion won in the second quarter of 2026. The company attributed the results, in its own account, to rising prices for key products on growing demand for AI memory and the competitiveness of its high-value-added products.
The operating margin was 79.7%, according to Seoul Economic Daily, or about 80% according to the company, up from 76.3% in the second quarter and 72% in the first quarter of 2026. The operating-profit result beat the LSEG SmartEstimate cited by Reuters, of 76.7 trillion won.
Net profit was 39.7756 trillion won, up 216% year on year but down 58% from 93.9226 trillion won in the second quarter. The cause of the quarter-on-quarter fall was not verified in the sources read, and this article does not assert one.
Newsroom Focus: The company states that the figures are preliminary, that review of the third-quarter results had not been finalised, and that figures are subject to change during the independent auditing process. Treat every figure here as preliminary.
What Drove the Beat: HBM4, Server DRAM and NAND
The company said DRAM results were driven by a significant increase in sales of server DDR5, while shipments of HBM4 began in earnest. HBM, or high-bandwidth memory, is memory used in AI processors.
The company said HBM4 is expected to surpass HBM3E in both shipment volume and revenue in the fourth quarter of 2026, and become the mainstream product. In NAND, sales of 321-layer TLC eSSD expanded, and high-value-added data-centre products grew across the board, according to the company.
Spot-price examples show how tight the market has become. Seoul Economic Daily, citing DRAMeXchange, reported the average DRAM price example, for DDR4 8Gb, at $26 at the end of the third quarter, against $6.30 a year earlier and $21 at the end of the second quarter. The average NAND price example was $30.61, about eight times a year earlier.
| Measure | Q3 2025 | Q2 2026 | Q3 2026 |
|---|---|---|---|
| Revenue | Not stated | 79.3187 trillion won | 104.6155 trillion won |
| Operating profit | 11.3834 trillion won | 60.5426 trillion won | 83.3338 trillion won |
| Net profit | Not stated | 93.9226 trillion won | 39.7756 trillion won |
The $75 Billion Shareholder Return Plan
The company said it will pursue about 100 trillion won in shareholder returns for fiscal 2026. The plan comprises cash dividends of 30 trillion won or more, plus share repurchases and cancellations of 60 trillion won or more, including 40 trillion won announced in August. The company said this fulfils its commitment to return 50% or more of free cash flow.
The board resolved a third-quarter cash dividend of 14 trillion won, or 20,000 won per share. That comprises a 10,000-won dividend reflecting improved earnings, and a 10,000-won special dividend sharing gains from the Kioxia investment.
The company said it will return most of the gains realised from its Kioxia investment this year to shareholders, mostly through the special dividend. The 40 trillion won repurchase announced in August was completed the prior week, and the shares will be cancelled shortly, according to the company. Repurchases will continue every quarter, under the company's stated principles.
Sold Out Through 2029
Reuters reported that SK Hynix said it had sold out of HBM and DRAM chips until 2029, that HBM demand was double what it can supply, and that a chip shortage was likely to continue through 2030. The company release says the demand-exceeds-supply structure is expected to persist through 2030.
The company said it had signed long-term agreements with 14 major customers, including leading global cloud providers, covering more than 50% of total production capacity for 2027 and 2028. Contract terms are typically five years, and extension talks are under way, according to the company.
Chief Financial Officer Kim Woo-hyun said, as quoted by Reuters: "We expect AI investment momentum to continue, as customers' AI spending is translating into broader adoption of AI services and tangible business results, while the range of companies investing in AI is also becoming more diversified." He also said customers were looking closer at project feasibility and profitability while refining the timing of investment.
Cash, Capacity and What to Watch
Cash and cash equivalents were 114.5 trillion won, up 26.5 trillion won in the quarter. Borrowings were 15.8 trillion won, down 2.8 trillion won, leaving net cash of 98.7 trillion won at the end of the third quarter, according to the company.
Investment is expected to increase significantly next year, with Yongin Phase 1 entering full-scale operation and domestic and overseas infrastructure investment gaining momentum. The company said it will adjust the scale and timing flexibly on demand, competitiveness, profitability and efficiency. No investment amount was verified.
Bottom Line
SK Hynix posted the largest quarter in its history on AI memory demand, and it plans to return about $75 billion to shareholders for fiscal 2026. The supply story is the one that reaches beyond this quarter: sold-out memory through 2029, and a shortage the company expects through 2030. The figures are preliminary, and the return plan depends on the cycle holding.
FAQ
What did SK Hynix report for Q3 2026?
Revenue of 104.6155 trillion won, up 327.9% year on year, and record operating profit of 83.3338 trillion won, up 632.1%, with net profit of 39.7756 trillion won. The figures are preliminary and subject to audit.
How large is the shareholder return plan?
About 100 trillion won, about $75 billion according to Reuters, for fiscal 2026: dividends of 30 trillion won or more plus repurchases and cancellations of 60 trillion won or more, including 40 trillion won announced in August. The third-quarter dividend alone is 14 trillion won, or 20,000 won per share.
Why did net profit fall from Q2 if operating profit hit a record?
Net profit fell 58% quarter on quarter, from 93.9226 trillion won in the second quarter to 39.7756 trillion won in the third, while rising 216% year on year. The cause was not verified in the sources read, and this article does not assert one.
What does sold out through 2029 mean?
According to Reuters' account of the company's statements, HBM and DRAM are sold out until 2029 and HBM demand is double supply. The company points to long-term agreements covering over 50% of 2027-2028 capacity with 14 customers, and expects demand to exceed supply through 2030.
What is HBM and why does it matter?
HBM, high-bandwidth memory, is memory used in AI processors. Reuters, citing Nomura, describes SK Hynix as the global HBM leader with almost half the market, and as a supplier to Nvidia. HBM4 shipments began in earnest in the third quarter and are expected to become the mainstream product in the fourth.
Sources
- Reuters — SK Hynix $75 billion shareholder return plan, record profit, sold-out supply and CFO quotes
- Seoul Economic Daily — Record quarter figures, margins, cash, dividend and supply detail
- SK Hynix company release — Full financial table, HBM4 and capacity plans, preliminary-figures disclaimer
- Image: AI-generated illustration created for this article / Red Eye Eagle News.
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