SK Hynix reports record Q2 2026 results with HBM (high-bandwidth memory) growth driven by AI model training and inference workload scaling at hyperscalers.
SK hynix has reported its strongest quarterly financial performance to date, driven by surging demand for high-performance memory used in AI infrastructure. The South Korean memory maker posted second-quarter revenue of 79.3 trillion won, up 51% from the previous quarter and 257% year over year. Operating profit reached 60.5 trillion won, an increase of 61% sequentially and 557% compared with the same period last year, while net profit climbed to 93.9 trillion won.
Strong sales of high-value products, including high-bandwidth memory (HBM), AI server DRAM and enterprise SSDs, drove the performance. Continued investment in AI infrastructure pushed higher prices for both DRAM and NAND flash memory, allowing the company to surpass the record results achieved in the previous quarter. Revenue for the first half of 2026 exceeded 100 trillion won for the first time in the company's history.
The strong earnings strengthened SK hynix's balance sheet considerably. Cash and cash equivalents increased to 88 trillion won by the end of the quarter, while total debt fell to 18.6 trillion won, giving the company a net cash position of 69.4 trillion won.
Looking ahead, SK hynix expects memory demand to remain strong as AI services become more widespread and increasingly autonomous. The company believes demand for both AI-specific memory and conventional memory will continue to grow as hyperscale operators expand their AI infrastructure. To support long-term supply, SK hynix has completed long-term agreements with around 10 customers, including strategic partners, while continuing negotiations with additional major customers.
SK hynix highlighted significant progress in next-generation memory technology. The company said its HBM4 devices have achieved the operating speeds requested by customers while delivering industry-leading power efficiency and cost competitiveness. Mass shipments of HBM4 began during the second quarter, with production ramping further during the second half of the year. The company also completed sample shipments of HBM4E in the first half of 2026, using manufacturing processes optimised for production stability and technology maturity.
Across its advanced memory portfolio, shipments of products based on its 10nm-class sixth-generation (1c) DRAM process have begun, while sales of SOCAMM2 increased significantly during the quarter. In NAND flash, 321-layer devices now account for the largest share of production, with the company aiming for roughly half of its domestic output to use the technology by the end of the year.
To meet growing customer demand, SK hynix is accelerating production plans for its M15X facility while preparing additional manufacturing capacity through the Yongin Phase 1 cleanroom, scheduled to open in early 2027. Future investments, including the P&T7 advanced packaging facility, the M17 NAND production site and a new semiconductor cluster, will be phased according to customer demand while maintaining capital expenditure discipline.