Key Takeaways
- SK hynix has concluded long-term agreements with around 10 customers, with terms of about five years and deposits built in, after a second quarter with operating income of KRW 60.5 trillion at a 76% margin.
- TIKR data puts full-year 2025 operating income at KRW 47.2 trillion and the operating margin at 48.59%, against an operating margin of -23.59% in 2023.
- TIKR consensus has revenue peaking at $439.39 billion in 2028 and easing to $366.87 billion by 2030, inside the window the contracts are meant to cover.
Consensus has SK hynix revenue peaking in 2028 while five-year contracts run longer. See the full estimate path behind that gap. Track SKHY estimates on TIKR for free →
SK Hynix Turns a Record Memory Boom Into Five-Year Contracts
Bull’s chief executive spoke at the company’s Angers factory on Friday and named the last major component Europe cannot source locally. “The problem is memory,” Emmanuel Le Roux told Reuters. “We don’t see anything coming.”
Scarcity of that kind is what SK hynix (SKHY) is now locking in. On the Q2 2026 earnings call, management said it has concluded long-term agreement negotiations with around 10 customers. The terms run about five years, with pricing mechanisms “designed to address price volatility” and deposits to support fulfillment.
The quarter shows how much margin sits behind the pricing. Second-quarter operating income, still provisional pending audit review, reached KRW 60.5 trillion at a 76% margin.
TIKR’s annual data shows how far this has moved. Operating income was KRW 47.2 trillion for all of 2025, so the second quarter alone exceeded it. Operating margin was 48.59% in 2025, against -23.59% in 2023.
Contracts Run Five Years, but Consensus Sees Revenue Peaking in 2028
Consensus does not treat the contracts as a permanent floor. TIKR’s estimates, in dollars, have revenue rising from $67.91 billion in 2025 to $253.78 billion in 2026 and $439.39 billion in 2028, before easing to $437.46 billion in 2029 and $366.87 billion in 2030. Normalized EPS climbs from $26.43 to $41.65 through 2028.
That fade falls inside the contract window. Five-year terms agreed in 2026 could run to roughly 2031, yet management said it “cannot say how much of our total sales will be covered by LTAs.”
Supply explains the caution. SK hynix guides 2026 capital spending into the high KRW 40 trillion range, and China’s CXMT says its fifth-generation DRAM platform has entered mass production.
The judgment is that the contracts support earnings through the build-out but do not yet prove a changed cycle. Coverage is undisclosed, and the 76% margin rode sharp price increases.
The next test is the third quarter. DRAM bit shipments are guided up about 10%, and a margin holding near current levels would show pricing is sticking. Upward revisions to 2029 and 2030 revenue would show analysts believe it.
Whether analysts lift their 2029 and 2030 revenue shows how much they trust the contracts. Watch those revisions as they come. Build a SKHY watchlist on TIKR for free →
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
