Kioxia stock faces test after record quarter and cautious outlook

Published on 11/02/2026 at 09:32 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Kioxia stock enters a new test after record quarterly results and a cautious December-quarter outlook. AI storage demand remains strong.

Record quarter, cautious near-term outlook

Kioxia posted record fiscal second-quarter revenue as AI data-center demand lifted NAND pricing and enterprise SSD sales.
Management expects NAND supply and demand to remain tight through calendar 2027, while smartphone and PC demand stays softer.
The company plans an interim dividend and says excess cash will be returned to shareholders after growth investment and financial safeguards.

Kioxia, JP3236330001, Illustration mit AI erstellt.

Kioxia Holdings reported record results for the fiscal second quarter ended September 30, 2026, but set a restrained near-term outlook. The company disclosed the figures on October 30, and a Reuters transcript published by Investing.com detailed the earnings call and management commentary.

Kioxia stock traded at 63.86 euros on Lang & Schwarz at 09:30 CET on Monday, November 2, 2026.

AI demand drives a record quarter

Revenue reached 2.480 trillion Japanese yen, an all-time quarterly high and 1.4 times the previous quarter's level. The figure also exceeded Kioxia's full-year fiscal 2025 revenue of 2.3376 trillion Japanese yen, highlighting the scale of the current NAND upcycle.

Non-GAAP operating profit rose to 1.9883 trillion Japanese yen, with an 80 percent margin. Non-GAAP net income reached 1.3486 trillion Japanese yen, while non-GAAP earnings per share came to 833.94 Japanese yen. Revenue and profit both exceeded the company's own second-quarter guidance.

Management attributed the performance to higher average selling prices and increased bit shipments. On a blended basis, average selling prices rose in the mid-20 percent range from the previous quarter, while like-for-like pricing increased in the low-30 percent range. Bit shipments rose in the low teens.

SSD and storage revenue reached 1.616 trillion Japanese yen and accounted for 65 percent of quarterly sales. The company said strong AI-server demand and higher prices for enterprise solid-state drives supported the record performance. Smart-device revenue was 788.9 billion Japanese yen, or 32 percent of sales.

December outlook tests investor confidence

For the fiscal third quarter ending December 31, Kioxia guides for revenue of 2.500 trillion Japanese yen and non-GAAP operating profit of 2.000 trillion Japanese yen. Non-GAAP net income is expected at 1.365 trillion Japanese yen, with non-GAAP earnings per share of 854.24 Japanese yen.

The limited sequential increase reflects several factors rather than a stated collapse in demand. Kioxia assumes a stronger yen at 157 Japanese yen per US dollar, creating a foreign-exchange headwind of 55 billion Japanese yen. Bit shipments are expected to remain broadly flat because some customer orders were pulled into the September quarter and other enterprise-storage orders require longer production lead times.

Management expects more volume to move into the following quarter. It said data-center and enterprise demand remains strong, while approximately half of the third-quarter shipments are still under price negotiation. The company also sees NAND supply and demand remaining tight through calendar 2027, although it cautioned that the pace of average selling price increases is difficult to predict.

Capacity visibility and shareholder returns

Kioxia said its calendar-2027 allocation is essentially complete and that more than half of calendar-2028 shipment volume is covered by multiyear agreements. The company is also discussing longer-term arrangements for 2029 and 2030. It expects QLC products to represent about 30 percent of bit shipments in calendar 2027 and 40 percent in calendar 2028.

The board also set an interim dividend of 90 Japanese yen per share before the October stock split. Management said the company aims to return 100 percent of excess cash to shareholders over the medium to long term, while prioritizing capital expenditure, research and development, strategic investment and a sound cash position.

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