SK hynix (000660) Q1 2026 earnings summary

Executive summary

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

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

• Performance was fueled by strong AI-driven demand, expansion of high-value products like HBM, server DRAM, and eSSDs, and robust pricing.

• Cash and cash equivalents rose to KRW 54.3 trillion, with net cash position improving to KRW 35 trillion and debt reduced to KRW 19.3 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 reached KRW 14 trillion, including FX and investment gains.

• Debt-to-equity ratio improved to 12%, down 6pp QoQ; net debt-to-equity at -21%.

Outlook and guidance

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

• 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 production ramp-up.

• Plans to ramp up HBM4 and expand 321-layer NAND and eSSD offerings.

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