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Kioxia reports ¥1.27 trillion quarterly operating profit as AI demand lifts NAND flash, but misses expectations

Kioxia reports ¥1.27 trillion quarterly operating profit as AI demand lifts NAND flash, but misses expectations

Revenue and profit surged in April-June on data center storage demand, while a stronger July-September outlook and a 3-for-1 stock split did little to settle questions over valuation and contract visibility.

Fact Check
The claim is corroborated across four independent sources. CHOSUNBIZ and BigGo Finance both report identical figures: Kioxia's April-June FY2026 quarterly operating profit of ¥1.27 trillion (~28x YoY), revenue ¥1.7671T (+415.5%), and net income ¥842.2B, driven by AI data center storage demand and higher NAND flash ASPs. Both confirm results missed Bloomberg consensus (operating profit 7.3% below ¥1.3701T) and own guidance. A stronger Jul-Sep outlook (revenue ¥2.39T, operating profit ¥1.89T, net income ¥1.27-1.34T) and a 3-for-1 stock split effective Oct 1 are also confirmed. BlockBeats and Odaily corroborate the net income figure, the missed-expectations framing, and the stock split. The only minor imprecision is that ¥1.27 trillion is both the Apr-Jun operating profit and the projected Jul-Sep net income, but the claim correctly identifies it as the quarterly operating profit.
Summary

Kioxia Holdings said fiscal 2026 first-quarter revenue rose 415.5% year on year to ¥1.77 trillion and operating profit jumped nearly 28-fold to ¥1.27 trillion, as generative AI data center demand boosted NAND flash pricing and storage sales. Net profit attributable to owners of the parent reached ¥842.2 billion, up from ¥18.3 billion a year earlier. Even so, the results came in below Bloomberg consensus estimates of ¥1.84 trillion in revenue and ¥1.37 trillion in operating profit, and also missed the company’s own ¥1.3 trillion operating profit guidance. Kioxia forecast stronger July-September performance, with revenue of ¥2.39 trillion and operating profit of ¥1.89 trillion, while market expectations for net profit stand at ¥1.34 trillion. Investors are also focused on whether the company will provide more detail on long-term supply agreements, seen as a key indicator of how durable AI-driven memory demand will be. The board approved a 3-for-1 stock split effective October 1.

Terms & Concepts
  • NAND flash: A type of memory chip used in storage products such as solid-state drives and devices serving data centers.
  • enterprise SSD: A solid-state drive designed for business and data center use, where performance and reliability are critical.
  • Long-Term Supply Agreements: Multi-year contracts that lock in supply arrangements between chipmakers and customers, often used to gauge earnings visibility.