SK hynix joins r40 coverage as the newest US listing on the site and, on the evidence of its own filings, the most extreme beneficiary of the memory upcycle anywhere in it.
The numbers are hard to believe, and they are the company's own
| Quarter | Revenue | Gross margin | Free cash flow | EPS/ADS |
|---|---|---|---|---|
| 2025 Q1 | $11.58B | 57.3% | $1.80B | $0.73 |
| 2025 Q2 | $14.59B | — | — | $0.63 |
| 2026 Q1 | $34.51B | 79.3% | $12.26B | $3.63 |
| 2026 Q2 | $52.06B | — | — | $8.45 |
Revenue in the June 2026 quarter was ₩79.3 trillion, up 256.8% against the same quarter a year earlier and 50.9% against the March quarter. Operating profit was ₩60.5 trillion — an operating margin of 76.3%. Gross margin in the March quarter, the most recent one with a disclosed cost of sales, was 79.3%, against 57.3% a year before.
For scale: Micron reported $41.5B in its May quarter and TSMC $40.2B in June. SK hynix, a memory maker, out-earned both.
Why this history is short
SK hynix has reported for decades — but only in Seoul. It registered with the SEC this summer and sold 177.9 million ADSs at $149.00 on 10 July 2026, each ADS representing one-tenth of a common share. As a foreign private issuer it files Form 6-K, not 10-Qs, and its first 20-F is a year away.
That leaves exactly four quarters that a US filing can support: the March quarters of 2025 and 2026 from the IPO prospectus, and the June quarters of both years from the preliminary-results 6-K filed on 29 July. Gross margin and free cash flow exist for only the two March quarters, because the 6-K reports revenue and profit but no cost of sales and no cash-flow statement.
The series here is thin because the record is thin. It will fill in as the company files.
What the Rule of 40 says, where it can be computed
Only the March 2026 quarter has both halves — revenue growth of 198% and a free-cash-flow margin of 35.5%. That is a Rule of 40 score of about 234, which says less about durable quality than about where memory sits in its cycle. Micron's model on this site assumes precisely that such margins revert; nothing in SK hynix's four quarters argues otherwise, and the company's own capital expenditure — ₩7.7 trillion in the March quarter alone — is what builds the supply that ends shortages.
A note on the currency
SK hynix reports in Korean won under K-IFRS. Every dollar figure above is converted at ₩1,523.5 per US$1.00, the Federal Reserve noon buying rate on 31 March 2026 and the rate the company's own prospectus states it uses for all conversions in that document. Applying one issuer-stated rate throughout keeps the series constant-currency, so the growth shown is operating growth rather than a mix of operations and the won. The two figures the prospectus translates itself — March 2026 revenue of US$34,510M and free cash flow of US$12,257M — reproduce exactly.
The Street has only just arrived
Coverage was initiated after the listing, and it is unanimous in direction and wide in degree: Buy from Rosenblatt at $320, Cantor Fitzgerald at $300, Needham and Wolfe Research both at $200, and William Blair without a target. Consensus is Strong Buy at an average $245.21 against a $171.38 close — a range where the high target is 60% above the low.
