SK Hynix Q2 Profit Surges but 'Below Expectations': Call Sends Positive Signals, HBM4E Confirmed for Mass Production in 2027

English summary

SK Hynix reported Q2 FY2026 earnings. Due to slowing growth in general memory prices and long-term agreement (LTA) locked pricing, both revenue and operating profit hit record highs but slightly missed Wall Street estimates. However, the company explicitly stated on the call that it 'does not see a slowdown in AI investment' and provided positive guidance on LTAs and next-generation HBM. # Key Financial and Margin Indicators: Revenue and Profit: Q2 revenue KRW 79.3 trillion (+257% YoY); operating profit KRW 60.5 trillion (+557% YoY), slightly below expectations of KRW 83.9 trillion and KRW 64.2 trillion. Margin and Net Profit: Q2 gross margin reached 83%, operating margin rose to 76.3%. Boosted by a gain of KRW 62.2 trillion from the sale of Kioxia shares, net profit reached KRW 93.9 trillion. Balance Sheet: As of end-Q2, cash and cash equivalents reached KRW 88 trillion (QoQ +KRW 33.6 trillion), and net cash position expanded to KRW 69.4 trillion.…