Kioxia Reports Revenue of ¥2,480 Billion and Operating Profit of ¥1,994.7 Billion
Key Facts
Kioxia reported results on October 30 for the six months ended September 30, 2026, posting quarterly revenue of ¥2,480 billion in the July-to-September quarter and operating profit of ¥1,994.7 billion. Operating profit rose from ¥1,270 billion in the previous quarter, while net profit attributable to owners of the parent company climbed to ¥1,355.7 billion from ¥842.2 billion. The improvement reflects accelerating demand for storage products, particularly from generative AI-related data-center customers. The company also pointed to weaker demand from smartphone and personal computer customers. Its shares fell on October 30, the day results were released, though closing data alone do not establish that the results caused the decline.
Kioxia said the quarter’s revenue increase was driven mainly by higher average selling prices, reflecting strong demand from data-center customers focused on generative AI, alongside an increase in bit shipments. According to details reported by Investing.com, bit shipments rose by a low double-digit percentage quarter on quarter in July to September. Average selling prices also increased by a mid-20s percentage, or a low-30s percentage excluding the impact of product mix. The HDD and storage segment posted revenue of ¥1,616 billion, up ¥441.3 billion from the previous quarter. The smart devices segment recorded revenue of ¥788.9 billion, an increase of ¥263.2 billion quarter on quarter. These gains came in a market that the company said continues to grow overall, despite declining demand from phone and PC customers.
For the first half of the fiscal year, from April to September, revenue was ¥4,247.2 billion, compared with ¥791.1 billion in the same period a year earlier. Operating profit for the period rose to ¥3,264.7 billion from ¥130.8 billion. Looking ahead, expectations centered on performance remaining near the levels of the quarter ended September. The company forecast revenue of ¥2,500 billion and operating profit of ¥1,995 billion for October to December. Revenue would represent a 0.8% quarterly increase from ¥2,480 billion, while operating profit would be nearly unchanged from ¥1,994.7 billion. The company said rising demand from data centers and enterprise customers is coexisting with weaker demand for phones and PCs.
But quarterly guidance appeared below analyst estimates cited by Investing.com, tempering the optimism sparked by the September results. The platform said its consensus estimate for non-GAAP operating profit in October to December was ¥2.32 trillion, compared with the company’s guidance of ¥2 trillion for that measure. In another report, Investing.com cited analyst expectations of ¥2.35 trillion in operating profit, versus the company’s forecast of ¥2 trillion. Kioxia also forecast flat shipments quarter on quarter, with average selling prices rising by a low single-digit percentage. The shares fell 7.1% to ¥13,470 on October 30, according to Investing.com, which linked the move to guidance falling short of expectations. The decline coincided with the release of guidance, while price data alone do not establish the cause of the move.
Kioxia announced an interim dividend of ¥30 per share, alongside a policy of allocating all excess cash to shareholder returns while maintaining a net cash position. The policy adds another dimension to the results, alongside the expansion in revenue and profit in the first half. The dividend, however, came alongside quarterly forecasts that effectively held operating profit near the September level. The financial results for the six months ended September 30 were published on October 30, according to the company’s official investor-relations page. The next period specified in the company’s guidance is October to December 2026, with forecast revenue of ¥2,500 billion and operating profit of ¥1,995 billion.