SK Hynix's third-quarter earnings showcased a remarkable performance, with revenue reaching 104.62 trillion won ($78.86 billion), surpassing the expected 98.34 trillion won, and operating profit hitting 83.33 trillion won against an estimate of 76.72 trillion won. This represents a staggering year-on-year revenue increase of 327.9% and a 632.1% rise in operating profit.
The company plans to return approximately 100 trillion won to shareholders, which includes at least 30 trillion won in cash dividends and 60 trillion won in share buybacks and cancellations. Notably, SK Hynix declared a third-quarter dividend of 14 trillion won, partly funded by gains from its investment in Kioxia.
Looking ahead, the company anticipates that its HBM4 memory technology will outperform HBM3E in shipments and revenue in the fourth quarter, as production ramps up at its Cheongju facility.
With long-term agreements in place with 14 major customers covering over 50% of its production capacity for 2027 and 2028, SK Hynix expects memory demand to exceed supply through 2030, prompting plans for increased investment next year.
However, the company’s U.S. subsidiary, Solidigm, has paused its pre-IPO fundraising review due to market volatility, indicating a cautious approach to future investments