SK Hynix posts record Q2 profit but misses estimates

SK Hynix reported record second-quarter earnings on Tuesday that nonetheless fell short of Wall Street expectations, as the memory chipmaker's heavy bet on high-bandwidth memory for artificial intelligence limited its ability to capitalize on a broader rally in conventional chip prices.

The South Korean semiconductor giant posted operating profit of 60.54 trillion won, a 557% increase from 9.21 trillion won a year earlier, with revenue hitting 79.32 trillion won, up 257% year-over-year. Both figures represented all-time quarterly highs and pushed cumulative first-half revenue past 100 trillion won for the first time in company history. The operating margin reached 76%, up from 41% in the year-ago quarter.spglobal

The Miss

Despite the record performance, the results fell below analyst consensus estimates. Revenue missed expectations of roughly 84 trillion won, while operating profit came in below the anticipated 64 trillion won range. Shares fell sharply in response, according to Barron's.reddit+1

Analysts had attributed the expected shortfall to SK Hynix's concentration in HBM chips, where long-term supply agreements with major customers locked in pricing before a recent surge in conventional memory spot prices. The company disclosed it has finalized long-term agreements with around 10 key customers, including strategic partners, for multi-year supply commitments.trendforce+2

HBM Leadership and Outlook

SK Hynix said it began mass shipments of HBM4 during the quarter and plans to ramp production in the second half of 2026. The company completed sample shipments of the next-generation HBM4E and said the product achieved "customer-required operating speeds" with "industry-leading power efficiency and cost competitiveness".spglobal

The company also noted that both DRAM and NAND flash prices rose during the quarter, and that demand from expanding AI infrastructure investments continued to drive growth. SK Hynix ended the quarter with 88 trillion won in cash and a net cash position of 69.4 trillion won after reducing total debt to 18.6 trillion won.spglobal

Reuters reported that the results reflect a broader tension in the memory industry, where companies focused on premium AI chips may underperform peers better positioned to ride conventional memory price increases in the near term.trendforce