Analyst(s): Futurum Research
Publication Date: February 2, 2026
SK Hynix’s quarter reflects an AI-driven shift in memory mix, with HBM and DDR5 share gains supporting pricing and profitability. Execution on HBM4, advanced packaging, and higher-value NAND positions the company to extend momentum into FY 2026.
What is Covered in this Article:
- SK Hynix’s Q4 FY 2025 financial results
- HBM4 ramp and custom HBM positioning
- Server DRAM mix shift and 1cnm migration
- NAND and AI storage roadmap with Solidigm
- Outlook and Final Thoughts
The News: SK Hynix (KRX: 000660) announced financial results for Q4 FY 2025. Revenue was ₩32.8T, up 66% year over year (YoY), versus consensus of ₩31.3T. NAND revenue grew by 59% YoY to ₩7.6T and DRAM revenue increased by 70.6% YoY to ₩24.9T. Operating profit was ₩19.2T, up 137% YoY, with an operating margin of 58% versus 41% in the prior period. Net profit was ₩15.2T, up 90% YoY. Diluted earnings per share (EPS) was ₩21,522 versus ₩11,571 a year ago.
“During the fourth quarter, strong demand for memory products continued, driven by intensifying global investment in AI infrastructure. Demand increased significantly, not only for HBM, but also for conventional server memory,” said Song Hyun‑Jong, President of Corporate Center, SK Hynix. “The pace of industry supply growth could not keep up with demand, leading to broad-based price increases and the formation of a highly favorable market environment.”
SK Hynix Q4 FY 2025: Structural Shift to AI Memory Lifts Margins
Analyst Take: SK Hynix’s Q4 FY 2025 underscores a structural mix shift toward AI-centric architectures, where HBM and server DDR5 are the primary levers of pricing and margin. Tight supply, constrained bit growth, and richer configurations supported profitability in both DRAM and NAND. Management is executing on HBM4 mass production and advanced packaging while accelerating 1cnm migration in DRAM and 321‑layer transitions in NAND. With capacity additions staged across M15X, Yongin Phase 1, Cheong‑ju P&T7, and the Indiana advanced packaging facility, the company is aligning its footprint and technology to meet AI demand. These moves, combined with disciplined capital deployment and close customer collaboration, set up continued leverage into FY 2026.
HBM4 Ramp and Custom HBM Positioning
HBM revenue more than doubled YoY in FY 2025, with Q4 FY 2025 momentum supported by HBM3E 12‑Hi shipments and customer preference for SK Hynix’s performance, quality, and producibility. Management confirmed HBM4 mass production in line with customer-agreed schedules following mass-production readiness in September 2025. HBM4 is built on the 1bnm process, and the company expects yields comparable to 12‑Hi HBM3E using its Advanced MR‑MUF packaging approach. Given that demand continues to exceed supply even as output is maximized, management expects some competitor participation alongside its maintained leadership. The company is actively engaging on custom HBM to align device parameters with system‑level goals for leading accelerator and cloud customers. Together, HBM4 execution and customer collaboration sustain product differentiation and pricing discipline.
Server DRAM Mix, DDR5 Scale, and 1cnm Migration
Server DDR5 demand accelerated in Q4 FY 2025 with high‑density module shipments up roughly 50% QoQ, even as overall DRAM bit shipments increased only low‑single‑digits. DRAM ASP rose mid‑20% QoQ as tight supply and richer server mixes outweighed constrained bit growth. SK Hynix began full‑scale mass production of 1cnm DDR5, targeting industry‑leading performance and cost structure as general‑purpose servers upgrade for AI‑adjacent workloads. The company highlighted development of a 256GB DDR5 RDIMM based on 1bnm 32Gb die as it pushes density and bandwidth gains. With AI-driven bandwidth needs expanding and general server specifications rising, server DRAM is expected to outpace broader market growth. This portfolio stance supports continued mix and margin benefits into FY 2026.
NAND and AI Storage Roadmap with Solidigm
NAND improved sequentially on mobile and enterprise SSD demand, with shipments up about 10% QoQ and ASP up low‑30% QoQ in Q4. The company completed development of 321‑layer QLC products and achieved record annual NAND revenue by meeting enterprise SSD demand in H2 FY 2025. Management plans to expand AI storage capabilities, leveraging Solidigm’s QLC eSSD portfolio and transition to 321‑layer for competitiveness. A next‑generation 245TB product is in development to address ultra‑high‑density storage use cases tied to expanding inference workloads. These storage vectors broaden data center exposure beyond DRAM/HBM and create a second demand lever as AI architectures scale. NAND roadmap execution provides a complementary growth driver as tiered storage for AI proliferates.
Outlook and Final Thoughts
Management expects tight supply-demand conditions to persist, given physical capacity limits and ongoing migrations, with Q1 DRAM shipments flat QoQ and NAND shipments slightly lower QoQ from a high base. DRAM demand growth is expected to exceed 20% YoY and NAND to grow in the high‑teens in FY 2026, with server-side requirements outpacing the broader market. The company will accelerate M15X capacity earlier than planned, scale 1cnm DRAM and 321‑layer NAND, and progress Yongin Phase 1, Cheong‑ju P&T7, and the Indiana advanced packaging facility. CapEx will increase considerably in FY 2026 while maintaining investment discipline tied to demand feasibility and efficiency. This approach, coupled with HBM4 mass production and custom HBM collaboration, supports sustained pricing power and multi‑node execution.
See the full press release on SK Hynix’s Q4 FY 2025 financial results on the company website.
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