SK hynix (000660) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of KRW 52.6 trillion in Q1 2026, up 60% QoQ and 198% YoY, driven by strong AI demand, high-value product mix, and robust DRAM/NAND pricing.

• Operating profit reached KRW 37.61 trillion, up 96% QoQ and 405% YoY, with a 72% margin; net profit surged to KRW 40.35 trillion, net margin 77%.

• Performance was supported by strong AI-driven demand, expansion of HBM, server DRAM, and eSSD sales, and favorable supply-demand dynamics.

• Cash and cash equivalents rose to KRW 54.3 trillion, with net cash position improving to KRW 35 trillion.

Financial highlights

• DRAM ASP rose by mid-60% QoQ; NAND ASP increased by mid-70% QoQ, despite a 10% drop in NAND shipments.

• EBITDA was KRW 41.34 trillion with a 79% margin; gross profit reached KRW 41.68 trillion, gross margin 79%.

• Net non-operating profit included FX and investment gains; cash and cash equivalents reached KRW 54.33 trillion.

• Debt-to-equity ratio improved to 12%, with interest-bearing debt down to KRW 19.3 trillion.

Outlook and guidance

• AI workloads are driving structural memory demand growth, especially for high-performance DRAM and NAND.

• DRAM shipments expected to rise by high single digits QoQ in Q2; NAND shipments to increase by mid-teens percentage.

• CapEx to increase significantly YoY, focused on infrastructure, advanced equipment, and new fabs.

• Favorable pricing environment expected to persist due to supply-demand imbalance.