Kioxia Profit Surges: Record ¥596.8B Quarterly Gain
According to financial results released after the Japanese market close on May 15, Japanese NAND flash memory leader Kioxia reported stronger-than-expected results for both its fiscal Q4 2025 (ended March 31, 2026) and full fiscal year 2025, driven by surging demand from AI-related data center infrastructure.
In fiscal Q4 2025, Kioxia posted revenue of ¥1,002.9 billion (approximately US$6.4 billion), up 459.2% quarter-on-quarter. Operating profit reached a record ¥596.8 billion (about US$3.9 billion), surging 454% sequentially and exceeding market expectations. The result placed Kioxia among Japan’s top corporate profit earners. The company’s SSD & Storage segment was the primary growth driver, generating ¥600.3 billion in sales, nearly tripling from the previous quarter.
For the full fiscal year 2025, Kioxia recorded consolidated revenue of ¥2.34 trillion, up 37% year-on-year. Net profit reached ¥554.49 billion (around US$3.5 billion), more than doubling from the prior year, while operating profit increased 92.7% to ¥870.37 billion.
Kioxia President and CEO Hiroo Ota stated during the earnings briefing that the company “rode the wave of AI demand to achieve record revenue and profit growth.”
Looking ahead to fiscal Q1 2026 (April–June), Kioxia issued an even more aggressive outlook, forecasting revenue of ¥1.75 trillion, a 74.5% quarter-on-quarter increase, and net profit of ¥869 billion—more than double the previous quarter. Management noted that demand momentum from data center expansion is expected to remain strong.
The company previously disclosed that its 2026 NAND flash production capacity is fully booked, reflecting tight supply conditions driven by sustained data center demand. Kioxia has largely finalized long-term supply agreements for 2026, continuing its pricing model of annual volume commitments with quarterly price adjustments. Some hyperscale customers have also proposed supply arrangements extending into 2027 and 2028.
Research firm Citigroup noted that Kioxia’s performance highlights a structurally tight NAND market supported by both AI-driven demand and persistent data center expansion, with favorable supply-demand dynamics expected to continue through 2026.
In terms of industry partnerships, Kioxia and Sandisk agreed to extend their joint venture agreements for NAND manufacturing facilities in Yokkaichi (Mie Prefecture) and Kitakami (Iwate Prefecture) in Japan by five years, pushing the expiration from 2029 to 2034. Under the revised terms, Sandisk will pay Kioxia US$1.165 billion in cash for manufacturing services and continued supply commitments, with payments scheduled between 2026 and 2029.
At the same time, Kioxia faces cost pressure from rising DRAM prices used in SSD cache configurations. The company indicated that it is evaluating potential pass-through pricing strategies while continuing cost optimization measures to mitigate margin impact.
On the same day as its earnings release, Kioxia also confirmed plans to pursue a U.S. listing. The company said it is preparing to list American Depositary Shares (ADS) on a U.S. stock exchange to broaden its investor base and enhance corporate value. However, the listing remains subject to regulatory approval, with timing and structure still undecided.
Since its Tokyo Stock Exchange listing in December 2024, Kioxia shares have shown strong performance. Despite an 8.27% drop on the day of the earnings announcement, the stock has gained 325.97% year-to-date, reflecting strong investor optimism around AI-driven storage demand.
Analyst Kazuyoshi Saito of Kazuyoshi Saito noted that Kioxia’s NAND portfolio benefits from lower production costs compared to peers, higher storage density per unit area, and 10%–20% faster read/write performance.
According to TrendForce, NAND flash contract prices are expected to rise 55%–60% in Q1 2026, with the upward trend potentially extending through the year. The firm forecasts that the NAND market size could reach US$147.3 billion in 2026, representing 112% year-on-year growth.
With major memory suppliers increasingly shifting capital expenditure toward HBM and advanced DRAM, NAND supply constraints are expected to persist in the near term. Industry analyst Akira Minamikawa of Omdia commented that rapidly rising chip prices reflect an unusually tight market condition, which is unlikely to be permanent but is expected to remain supportive through the current fiscal year.
