SKHY Q3 2026 Earnings Review
SK Hynix is likely to report strong results in Q3 2026, as increasing demand for AI memory, rising prices for DRAM and NAND, and strong HBM4 and server DDR5 shipments. The tight supply and demand in the short term could continue to drive momentum, despite volatility in the stock and concerns over the memory cycle.
There is also excitement among investors over the potential special dividend that could be paid out from the sale of its Kioxia stake. Overall, analysts are positive, as SK Hynix has performed well in high bandwidth memory and has high margins.
Key Takeaways:
Q3 results are in focus: SK Hynix is expected to report earnings per share (EPS) of $6.20 and revenue of $75.17 billion in the Q3.
AI demand is driving growth: The rise in prices of DRAM and NAND, as well as investments in AI infrastructure, helped SK Hynix's revenues rise 257% year-on-year in the Q2, while operating profits jumped over six-fold to a record high.
Q2 missed expectations: But the results were below analysts’ expectations.
Shares have lagged the market: The stock has underperformed, falling almost 6% this year compared to an 11% rise in the S&P 500.
What to watch: Investors will be looking for any developments on shareholder returns, as SK Hynix may return some 16 trillion won ($12 billion) to shareholders in the form of a special dividend, reflecting gains from its Kioxia investment. Investors will also be looking for any news on Solidigm.
Can SK Hynix’s Earnings Boom Last Through 2028?
While strong memory pricing is driving near-term earnings growth, long-term upside will hinge on SK Hynix’s execution on HBM4 and supply discipline.
HBM4 is the next major growth driver for SK Hynix, with volumes starting to ship in Q2. However, industry data suggests that volumes may have been lower than expected in Q3 due to timing of Nvidia Rubin and product tuning.
The main question is whether they can continue to keep supply tight until 2028. While they have long-term contracts with around 10 customers meaning there is good visibility into demand, future margins will depend on how much volume they are committed to, what the price is and how much capacity comes online from competitors.
CXMT Fears vs. Valuation: Is a 2028 Downturn Already Priced In?
The memory sector has seen a sharp selloff, Goldman Sachs estimated that major memory companies have lost around $738 billion in market value in early October. Despite this, spot prices of DRAM are still rising.
While China’s capacity expansion is a competitive threat, it will take time for capacity to be translated into innovative production. It may take some time for China to catch up technologically.
SHARIAH Compliance Metrics
SKHY fails Musaffa Business Activity parameters based on AAOIFI methodology as of 2ND quarter report 2026.
Business Activity 84.98% Halal, Doubtful is 14.79%, and non-Halal is 0.23%.
Interest-bearing securities and assets = 26.05% (Shariah-complaint is < 30%).
Interest-bearing debt = 8.31% (Shariah-complaint is < 30%).
You can get a more detailed breakdown of SK Hynix shariah status on its stock page.