Kioxia Expects Operating Profit to Hold Steady at ¥1,995 Billion Next Quarter
Key Facts
Kioxia expects operating profit of ¥1,995.0 billion for the quarter ending in December 2026, little changed from the previous quarter, as strong data-center demand faces an expected negative impact from foreign-exchange rates. The company estimated revenue for the period at ¥2,500.0 billion, up 0.8% quarter on quarter from ¥2,480.0 billion in the quarter ended in September. Kioxia said demand from data centers is expected to remain strong. But it added that factors including exchange rates would leave revenue and profit in the third quarter broadly in line with the second quarter. That means the company does not expect the pace of improvement recorded in the previous period to continue.
On the operating-profit measure consistent with the company's presentation, the forecast of ¥1,995.0 billion compares with an actual ¥1,994.7 billion in the September quarter, explaining the projected 0.0% change. On an operating-profit basis not aligned with International Financial Reporting Standards, Kioxia forecast ¥2,000.0 billion for the quarter ending in December, versus ¥1,988.3 billion in the previous quarter, an increase of 0.6%. Together, the two figures point to broadly stable operating profit, with a slight improvement on the adjusted measure used by the company. For revenue, the expected quarterly increase indicates limited growth after the sharp rise in the September quarter. The guidance therefore points to activity holding at elevated levels, rather than strong quarter-on-quarter expansion.
The September-quarter result was supported by higher average selling prices. Kioxia said strong demand from generative-AI-focused data-center customers lifted prices alongside an increase in bit shipments. Revenue for the three months ended September 30 was ¥2,480.0 billion, up ¥712.9 billion from the previous quarter. The company attributed the improvement mainly to a substantial rise in average selling prices and shipment growth. Those factors provide a backdrop to strength in activity tied to data-center expansion, but do not offset the currency impact the company expects in the following quarter. Strong demand therefore contrasts with expectations for revenue and profit to remain broadly stable in the coming period.
Kioxia's guidance was reflected in its Tokyo-listed shares, which closed at ¥11,345 on November 2, compared with ¥13,470 on October 30. The decline between the two closes coincided with investor disappointment over the forecast for the quarter ending in December, Reuters reported. The Japanese stock's performance offers a direct market signal of the reception to the outlook, while the available closing-price data do not allow confirmation of the intraday declines attributed in the draft to U.S. companies. Micron shares closed at $856.845 on November 2, while the latest available close for Western Digital was $366.11 on October 30. Available data do not include a price for SanDisk shares, so its documented performance cannot be included in this comparison.
Kioxia scheduled its half-year report for November 6, 2026, with dividend payments set to begin on December 8, 2026. The half-year report follows the company's guidance for the quarter ending in December, and its date will give investors a near-term checkpoint for assessing performance. Dividend payments are due to begin about a month later. The central operational message in the outlook remains the combination of strong data-center demand and a currency impact that limits expected quarterly growth. The company forecast revenue of ¥2,500.0 billion and operating profit of ¥1,995.0 billion for the coming period.