SK hynix Misses Revenue Expectations Despite Record Profit
South Korean semiconductor giant SK hynix reported record Q2 FY2026 operating profit but missed revenue expectations, leading to an 8.98% drop in its stock price on July 29. The company's quarterly revenue rose by 256.8% year-over-year to KRW 79.3 trillion ($54.7 billion), falling short of the estimated KRW 84 trillion ($57.95 billion). Despite strong demand for AI infrastructure and a record first-half revenue exceeding KRW 100 trillion, shipment delays on advanced products limited pricing gains. SK hynix's operating profit reached KRW 60.5 trillion ($41.8 billion), up 557.2% from the previous year but below analysts' forecast of KRW 64 trillion ($44.15 billion). The company also reported a cash and equivalents balance of KRW 88 trillion, an increase of over KRW 33.6 trillion since Q1. Management expects capital spending to reach the upper end of its projected range for the year. The stock has fallen by more than 14% in five trading days following the earnings report and is currently valued at a price-to-sales ratio below industry averages, potentially offering an entry point for investors.
Topics: AI stocks earnings miss Kospi Composite Index SK hynix