South Korea's SK Hynix reported lower-than-expected revenue and profits for the second quarter, as long-term supply agreements limited its ability to raise spot prices.

South Korean memory chip manufacturer SK Hynix released its financial results for the second quarter of fiscal year 2026, reporting revenue of 79.32 trillion won and operating profit of 60.54 trillion won.Although revenue and operating profit surged 257% and 557% year-over-year, respectively—setting new all-time highs—both figures fell short of market expectations by approximately 5.5% and 5.7%.

The company’s operating profit margin reached 76.3%, setting a new record high for the memory industry.However, because approximately 50% of its revenue is locked into long-term supply agreements (LTAs), the average selling prices (ASPs) for DRAM and NAND flash memory rose far less than the surge in the spot market during the same period, preventing the company from fully benefiting from price increases. In contrast, both Samsung Electronics and Micron Technology reported results that exceeded market expectations during the same period.