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Is SK Hynix Stock a Buy Before Q3 Earnings? Key Tips to Note
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Key Takeaways
The consensus mark for SKHY's Q3 earnings per ADR and revenues is $5.96 and $66.4 billion, respectively.
SKHY expects DRAM shipments to rise 10% Q/Q in Q3, while its HBM4 ramp and tight supply support growth.
SK Hynix's hefty capex, margin uncertainty and stiff HBM competition do not support a Buy ahead of Q3 results.
SK Hynix (SKHY - Free Report) , one of the leading memory chip companies, is slated to release third-quarter 2026 results tomorrow. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per ADR and revenues is pegged at $5.96 and $66.4 billion, respectively. The earnings estimate for the to-be-reported quarter has remained stable over the past 30 days.
This will be the second time SK Hynix will be posting quarterly results since its Wall Street debut in July. In the last reported quarter, the company beat earnings estimates by 71.09%.
For full-year 2026, the Zacks Consensus Estimate for SKHY revenues is pegged at $240 billion, suggesting an increase of roughly 251% year over year. The consensus mark for full-year earnings per ADR is $25.69, implying growth of 504.5%. The consensus mark for 2027 earnings per ADR per share points to a 27% increase from the projected 2026 levels.
Image Source: Zacks Investment Research
SKHY Q2 Highlights
SK Hynix delivered record-breaking results for the second quarter of 2026, driven by robust AI-related memory demand, higher selling prices and improved cost efficiency. Revenues surged 257% year over year and 51% sequentially to KRW 79.32 trillion. Operating profit jumped 557% year over year and 61% sequentially to KRW 60.54 trillion, with the operating margin reaching a record 76%.
DRAM bit shipments increased by a high-single-digit percentage sequentially, while average selling prices (ASPs) rose approximately 30%, supported by strong demand for HBM and server memory. NAND bit shipments grew by a mid-teen percentage, with ASPs increasing by mid-50%. Enterprise SSD revenues doubled sequentially, reflecting strong AI-related storage demand.
Earnings Whispers for Q3
Our proven model doesn’t conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
SKHY stock has an Earnings ESP of 0.00% and a Zacks Rank #3.
SK Hynix’s third-quarter results will be driven mainly by higher volumes and a better product mix, set against a tight supply backdrop. The company expects third-quarter DRAM bit shipments to increase approximately 10% sequentially, while NAND shipments are projected to rise by a low-single-digit percentage. The planned HBM4 production ramp-up should support further growth.
SK Hynix is well-positioned to benefit from its expanding portfolio of advanced memory products. The company began shipping HBM4 in the second quarter of 2026 and aims to accelerate production in the latter half of the year. Higher shipments of 1c-nm conventional DRAM and a greater contribution from premium products are expected to support selling prices and profitability. The expanding supply of SOCAMM2 products also strengthens its presence in the server memory market.
Meanwhile, persistent supply shortages, driven by complex manufacturing processes and lengthy capacity expansion timelines, coupled with robust customer demand, should provide a favorable backdrop for continued growth.
That said, SKHY’s massive capex requirements may limit FCF as it expands manufacturing capacity to meet growing AI-related memory demand. The company expects capex to reach the high-KRW 40 trillion range in 2026. Investments include accelerated production at M15X, capacity development at Yongin Fab 1 and additional facilities such as P&T7 and M17. Although these expansions support long-term growth, significant spending could weigh on near-term financials.
Price Performance & Valuation
Over the past three months, shares of SKHY have increased 9.6% against the industry’s decline of 8%. However, the stock underperformed peers like Micron Technology (MU - Free Report) and Sandisk Corporation (SNDK - Free Report) . During the same timeframe, shares of Micron and Sandisk gained more than 10% and 14%, respectively.
3-Month Price Performance Comparison
Image Source: Zacks Investment Research
SKHY trades at 3 times forward 12-month sales. That is below Micron’s 3.56 and Sandisk’s 3.47 times.
SKHY's F12M P/S vs. MU & SNDK
Image Source: Zacks Investment Research
Buy, Hold or Sell SKHY Now?
SK Hynix is benefiting from AI infrastructure spending, which is lifting demand for HBM, server DRAM and enterprise SSDs, while tight supply is pushing prices higher. Long-term agreements with about 10 customers, typically five years with deposits and purchase commitments, add visibility and reduce price volatility.
However, these strengths are well known, and second quarter’s record results have set a high bar. Management gave no margin guidance for the third quarter, so further upside depends on execution rather than new catalysts.The risks also keep us on the sidelines. Capex is rising to the high-KRW 40 trillion range, PC and mobile demand is soft because of memory shortages, HBM competition is intensifying, and the memory cycle remains volatile. Industry-wide capacity additions could eventually lead to oversupply.
We would turn more constructive on clear evidence of margin expansion in the third quarter, particularly if the HBM4 ramp lifts blended ASP. Until then, SK Hynix looks more like a Hold rather than a Buy.
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Is SK Hynix Stock a Buy Before Q3 Earnings? Key Tips to Note
Key Takeaways
SK Hynix (SKHY - Free Report) , one of the leading memory chip companies, is slated to release third-quarter 2026 results tomorrow. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per ADR and revenues is pegged at $5.96 and $66.4 billion, respectively. The earnings estimate for the to-be-reported quarter has remained stable over the past 30 days.
This will be the second time SK Hynix will be posting quarterly results since its Wall Street debut in July. In the last reported quarter, the company beat earnings estimates by 71.09%.
For full-year 2026, the Zacks Consensus Estimate for SKHY revenues is pegged at $240 billion, suggesting an increase of roughly 251% year over year. The consensus mark for full-year earnings per ADR is $25.69, implying growth of 504.5%. The consensus mark for 2027 earnings per ADR per share points to a 27% increase from the projected 2026 levels.
SKHY Q2 Highlights
SK Hynix delivered record-breaking results for the second quarter of 2026, driven by robust AI-related memory demand, higher selling prices and improved cost efficiency. Revenues surged 257% year over year and 51% sequentially to KRW 79.32 trillion. Operating profit jumped 557% year over year and 61% sequentially to KRW 60.54 trillion, with the operating margin reaching a record 76%.
DRAM bit shipments increased by a high-single-digit percentage sequentially, while average selling prices (ASPs) rose approximately 30%, supported by strong demand for HBM and server memory. NAND bit shipments grew by a mid-teen percentage, with ASPs increasing by mid-50%. Enterprise SSD revenues doubled sequentially, reflecting strong AI-related storage demand.
Earnings Whispers for Q3
Our proven model doesn’t conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
SKHY stock has an Earnings ESP of 0.00% and a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors at Play
SK Hynix’s third-quarter results will be driven mainly by higher volumes and a better product mix, set against a tight supply backdrop. The company expects third-quarter DRAM bit shipments to increase approximately 10% sequentially, while NAND shipments are projected to rise by a low-single-digit percentage. The planned HBM4 production ramp-up should support further growth.
SK Hynix is well-positioned to benefit from its expanding portfolio of advanced memory products. The company began shipping HBM4 in the second quarter of 2026 and aims to accelerate production in the latter half of the year. Higher shipments of 1c-nm conventional DRAM and a greater contribution from premium products are expected to support selling prices and profitability. The expanding supply of SOCAMM2 products also strengthens its presence in the server memory market.
Meanwhile, persistent supply shortages, driven by complex manufacturing processes and lengthy capacity expansion timelines, coupled with robust customer demand, should provide a favorable backdrop for continued growth.
That said, SKHY’s massive capex requirements may limit FCF as it expands manufacturing capacity to meet growing AI-related memory demand. The company expects capex to reach the high-KRW 40 trillion range in 2026. Investments include accelerated production at M15X, capacity development at Yongin Fab 1 and additional facilities such as P&T7 and M17. Although these expansions support long-term growth, significant spending could weigh on near-term financials.
Price Performance & Valuation
Over the past three months, shares of SKHY have increased 9.6% against the industry’s decline of 8%. However, the stock underperformed peers like Micron Technology (MU - Free Report) and Sandisk Corporation (SNDK - Free Report) . During the same timeframe, shares of Micron and Sandisk gained more than 10% and 14%, respectively.
3-Month Price Performance Comparison
SKHY trades at 3 times forward 12-month sales. That is below Micron’s 3.56 and Sandisk’s 3.47 times.
SKHY's F12M P/S vs. MU & SNDK
Buy, Hold or Sell SKHY Now?
SK Hynix is benefiting from AI infrastructure spending, which is lifting demand for HBM, server DRAM and enterprise SSDs, while tight supply is pushing prices higher. Long-term agreements with about 10 customers, typically five years with deposits and purchase commitments, add visibility and reduce price volatility.
However, these strengths are well known, and second quarter’s record results have set a high bar. Management gave no margin guidance for the third quarter, so further upside depends on execution rather than new catalysts.The risks also keep us on the sidelines. Capex is rising to the high-KRW 40 trillion range, PC and mobile demand is soft because of memory shortages, HBM competition is intensifying, and the memory cycle remains volatile. Industry-wide capacity additions could eventually lead to oversupply.
We would turn more constructive on clear evidence of margin expansion in the third quarter, particularly if the HBM4 ramp lifts blended ASP. Until then, SK Hynix looks more like a Hold rather than a Buy.