Kioxia's Quarterly Revenue Surges a Record 453%, but Current-Quarter Profit Guidance Misses by 15% and Shares Tumble

Japanese NAND flash memory giant Kioxia reported July-September results: revenue of ¥2.48 trillion (approximately $15.7 billion), up 453.2% year over year, and adjusted operating profit of ¥1.9883 trillion (approximately $12.6 billion) at an 80.2% margin, both record highs. However, its October-December adjusted operating profit guidance of about ¥2 trillion (approximately $12.7 billion) is roughly 15% below market expectations, with only about 1% sequential growth, which the company attributed to shipment timing mismatches. Meanwhile, the average selling price increase for NAND flash narrowed from about 70% in the prior quarter to the "mid-20% range," and the chief financial officer acknowledged uncertainty over whether prices can keep rising in fiscal 2027. Shares fell as much as about 15% intraday. Kioxia still stressed that 2027 capacity is sold out and multiyear contracts cover more than 50% of 2028, and it paid an interim dividend of ¥30 (approximately $0.19) per share for the first time.