SK Hynix unveiled $75 billion shareholder return plan after record profit

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SK Hynix revenue topped 100 trillion won for the first time, up 32% from the prior quarter, on higher AI memory prices

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SK Hynix said on Wednesday it will pursue about 100 trillion won in shareholder returns for fiscal 2026 after reporting record third-quarter operating profit of 83.3338 trillion won. The planned returns equal about $75 billion, according to The Wall Street Journal.

Revenue reached 104.6155 trillion won, the first quarter above 100 trillion won in the company's history. Revenue rose 32% and operating profit rose 38% from the second quarter, and the operating margin was 80%. Net profit was 39.7756 trillion won, a net margin of 38%.

Net profit fell short of the 61.418 trillion won analysts expected, according to The Wall Street Journal.

The 2026 return plan consists of cash dividends of 30 trillion won or more and share repurchases and cancellations of 60 trillion won or more, the company said. The repurchase total includes the 40 trillion won buyback announced in August, which was completed last week. Those shares will be cancelled. The company said it intends for the plan to fulfill its commitment to return 50% or more of free cash flow.

The board approved a third-quarter cash dividend of 14 trillion won and a share repurchase of 20 trillion won. Of the repurchased shares, 10 trillion won will be cancelled in full. The remaining 10 trillion won will fund employee compensation and is not counted in the shareholder return total.

The dividend is 20,000 won per share. It consists of a 10,000-won dividend reflecting improved earnings and a 10,000-won special dividend from gains on the company's investment in Japanese chipmaker Kioxia.

CEO Kwak Noh-Jung said the company discontinued its review of an initial public offering for its Solidigm unit after weighing financial market conditions and other factors.

"The customer trust built through our technological competitiveness is leading to long-term contracts, and our business structure is transforming into one with earnings stability and mid-to-long term demand visibility," Kwak said in a statement.

SK Hynix said it expects demand for memory to exceed supply through 2030. It has signed long-term agreements with 14 major customers that together account for over half of its manufacturing capability in 2027 and 2028. It expects HBM4 high-bandwidth memory to surpass the older HBM3E generation in shipments and revenue in the fourth quarter, and it said investment will increase significantly next year as Yongin Phase 1 enters full-scale operation.

In August, the company approved a plan to repurchase and cancel 40 trillion won of its own stock and said it would raise its 2025–2027 return commitment to a floor above 50% of cumulative free cash flow. It said details of additional returns would come with third-quarter results.

SK Hynix stock closed 10.89% higher in Seoul on Wednesday.

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