SK hynix recorded its highest-ever performance as of the second quarter of 2026. In particular, attention is focused on the unusual profit-and-loss structure where net profit exceeds both revenue and operating profit.

Q2 Performance at a Glance

SK hynix's announced consolidated performance for the second quarter shows revenue of 79.3187 trillion won, operating profit of 60.5426 trillion won, and net profit of 93.9226 trillion won. The operating profit margin was tallied at 76%, and the net profit margin at 118%.

Based on the officially announced figures, net profit is 14.6039 trillion won higher than revenue, and 33.3800 trillion won larger compared to operating profit. Year-over-year, revenue increased by 257% and operating profit by 557%.

Driven by AI Demand... Expanded Sales of HBM and eSSD

SK hynix explained that strong demand driven by expanded AI infrastructure investment and increased sales of high-value-added products led to the performance improvement. Sales of high-bandwidth memory (HBM), AI server DRAM, and enterprise SSD (eSSD) expanded, while DRAM and NAND prices also rose sharply compared to the previous quarter, contributing to improved profitability.

Net Profit Margin of 118%: Caution Against Simple Interpretation

However, based solely on the performance disclosure materials released by the company, it is difficult to confirm the specific reasons why net profit exceeds revenue and operating profit. While operating profit is an indicator of a company's core business profitability, net profit reflects not only operating profit but also various items such as financial gains and losses, equity method earnings, investment asset-related gains and losses, foreign exchange fluctuations, and corporate taxes.

Therefore, the 118% net profit margin should not be interpreted directly as the profitability of semiconductor product sales. When evaluating the profitability of SK hynix's semiconductor business, the 76% operating profit margin should be examined first rather than the net profit margin. Based on official performance figures, approximately 76.3 won in operating profit was generated per 100 won of revenue.

Even though the specific background of the net profit margin has not yet been confirmed, it is clear that the company achieved high profitability in its core semiconductor business.

First Half Cumulative Revenue Exceeds 100 Trillion Won for the First Time

The pace of performance growth has also accelerated. In the first quarter of this year, revenue was 52.5763 trillion won and operating profit was 37.6103 trillion won. Second-quarter revenue increased by approximately 50.9% and operating profit by approximately 61.0% compared to the previous quarter.

Accordingly, cumulative revenue for the first half reached 131.8950 trillion won, surpassing 100 trillion won for the first time, while cumulative operating profit reached 98.1529 trillion won, approaching the 100 trillion won mark. The second quarter accounted for approximately 60.1% of first-half cumulative revenue and approximately 61.7% of cumulative operating profit, meaning that more than 60% of the total was generated in one of the two quarters.

Whether Record Performance Will Continue Requires Separate Verification

Whether the record-breaking performance will continue in the future needs to be examined separately. The current high operating profit margin simultaneously reflects increased sales of high-performance memory for AI servers, such as HBM, and rising DRAM and NAND prices. Even if demand for AI servers is sustained, price adjustments in general-purpose memory could affect overall profitability.

Conversely, if AI data center investment continues and demand for server DRAM and eSSD expands, there is a possibility that the performance base could spread beyond HBM to multiple high-value-added memory products.

The company stated that it is engaged in long-term supply agreements with about ten partners, including key customers. It also explained that it has secured the operating speed, power efficiency, and cost competitiveness demanded by customers for HBM4. While long-term supply agreements can increase the predictability of future sales volumes, the supply prices, purchase volumes, and price adjustment terms for each contract have not been disclosed, so it cannot be assumed that the current operating profit margin will be maintained.

Key Variables to Confirm Going Forward

When evaluating future performance, factors such as the HBM4 supply schedule, AI server memory demand, DRAM and NAND prices, and the expansion of long-term supply agreements should be checked together. The specific background behind the 118% net profit margin also requires additional verification. Once items such as financial gains and losses, equity method earnings, investment asset-related gains and losses, and corporate taxes are disclosed in the official semi-annual report going forward, it is expected to become clearer which item caused the difference between operating profit and net profit.

The facts confirmed by current official materials are that second-quarter net profit was 14.6039 trillion won more than revenue and 33.3800 trillion won more than operating profit. Since the specific composition of these differences cannot be verified from the performance disclosure materials alone, it is not appropriate to regard the entire net profit of 93.9226 trillion won as repeatable semiconductor business profit.

When evaluating core business performance, judgment should be centered on revenue of 79.3187 trillion won, operating profit of 60.5426 trillion won, and the operating profit margin of 76%. What SK hynix has demonstrated through these results is its high profitability in the AI memory market. What needs to be confirmed going forward is not whether the 118% net profit margin will recur, but how long the core semiconductor business profitability, reflected in the 76% operating profit margin, can be sustained.

[※ The stock market may fluctuate significantly depending on corporate performance, semiconductor prices, exchange rates, supply and demand, and domestic and international economic conditions. Investment decisions and responsibilities regarding specific stocks rest solely with the investor, and this article does not recommend or guarantee any investment. This article was written with AI assistance.]