SK hynix reported record third-quarter earnings on Wednesday and outlined plans to return about 100 trillion won ($75.5 billion) to shareholders this year, as booming demand for artificial intelligence memory pushed quarterly revenue above 100 trillion won for the first time.
The South Korean memory chip maker said operating profit rose 38 percent from the previous quarter to 83.33 trillion won, delivering an operating margin of nearly 80 percent. Revenue increased 32 percent to 104.62 trillion won, while net profit totaled 39.78 trillion won.
For 2026, SK hynix plans at least 30 trillion won in cash dividends and at least 60 trillion won in share buybacks and cancellations, aiming to fulfill its pledge to return at least 50 percent of free cash flow to shareholders.
The annual buyback total includes the 40 trillion won program announced in August, which the company completed last week. Those shares will be canceled shortly.
On Wednesday, the board approved a further 20 trillion won in share buybacks. Of that amount, 10 trillion won will be canceled as part of the shareholder return program. The remaining 10 trillion won is reserved for employee compensation and excluded from the shareholder return total.
The board also approved a third quarter dividend of 20,000 won per share, including a special dividend of 10,000 won tied to its Kioxia investment. SK hynix said it would return most of the gains realized from that investment this year to shareholders.
Sales of HBM4, advanced memory used in AI processors, and server DDR5 helped drive earnings. SK hynix expects HBM4 to overtake HBM3E in both shipment volume and revenue in the fourth quarter.
The company said long-term agreements with 14 major customers cover more than 50 percent of its production capacity for 2027 and 2028, with pricing mechanisms that reflect market conditions within agreed ranges.
SK hynix expects memory demand to exceed supply through 2030 and plans to increase investment significantly next year as its first Yongin fabrication plant begins full-scale operations.
herim@heraldcorp.com
