SK Hynix reported record quarterly results on Wednesday, with operating profit surging 557% year on year to 60.54 trillion won in the second quarter, but the figures fell short of analyst expectations and the company's stock dropped 9.6%.
Operating profit soared 557% year on year to 60.54 trillion won, but fell short of a 64 trillion won forecast
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SK Hynix reported record quarterly results on Wednesday, with operating profit surging 557% year on year to 60.54 trillion won in the second quarter, but the figures fell short of analyst expectations and the company's stock dropped 9.6%.
For the April-June period, revenue came in at 79.32 trillion won, a 257% increase compared with the same quarter a year ago. Analysts had expected operating profit of 64 trillion won and revenue of 84 trillion won, according to CNBC, citing LSEG SmartEstimates. Net profit reached 93.92 trillion won, a more than 13-fold increase, with 63.3 trillion won in investment asset gains providing a substantial lift, according to Reuters. Analysts estimated the gains represented cumulative proceeds recognized after last month's closing of the Kioxia stake sale, with SK Hynix having held a position in the Japanese NAND flash memory maker since 2018.
According to Reuters, analysts attributed the shortfall to HBM4 shipments that came in below expectations, pushing some revenue recognition into later periods. SK Hynix said it began mass shipments of HBM4 in the second quarter and plans to ramp up production in the second half of the year.
The company said cumulative first-half revenue crossed 100 trillion won for the first time in its history, driven by strong demand for AI-related memory products. Both DRAM and NAND flash memory prices rose quarter over quarter, the company said.
On an earnings call, SK Hynix President Song Hyun-jong said customer demand remained robust, with buyers continuing to ask for more memory, and noted that the company was pursuing additional long-term contracts as a way to reduce exposure to price swings. The company said it has finalized long-term agreements, typically spanning five years, with around 10 customers and is continuing discussions with other major industry players.
SK Hynix said its capital spending budget for the year is expected to reach the upper end of the 40 trillion won range, compared with 30.2 trillion won spent in 2025. SK Hynix said it would accelerate the mass production schedule for its M15X facility and expand capacity following the planned opening of the Yongin Phase 1 cleanroom in early 2027.
The absence of any concrete shareholder return plan also dragged on the stock. SK Hynix said it could not yet provide details on the timing, size, or structure of its shareholder return policy but planned to disclose a plan later this year.
The benchmark KOSPI index closed down 6% on Wednesday.
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