Kioxia (285A) investor relations material

Executive summary

• Q2 revenue reached a record ¥2,480.0bn, exceeding FY2025 full-year revenue of ¥2,337.6bn; AI-led SSD demand and higher ASPs drove results.

• H1 revenue was ¥4,247.2bn and IFRS operating profit ¥3,264.7bn, sharply higher YoY on stronger memory pricing, bit shipments and generative-AI data-center demand.

• Q3 revenue and profit guidance is near Q2 levels; management expects delayed orders to lift Q4 shipments, while NAND demand remains tight and CY2027 capacity is fully allocated.

Financial highlights

• Q2 revenue was ¥2,480.0bn, +40.3% QoQ and +453.2% YoY; non-GAAP operating profit was ¥1,988.3bn, +49.9% QoQ and +2,181.1% YoY.

• Adjusted non-GAAP gross profit was ¥2,091.9bn, with an 84% margin, or 87% excluding JV-related items; IFRS operating profit was ¥1,994.7bn and IFRS net income ¥1,355.7bn.

• Non-GAAP net income was ¥1,348.6bn and EPS ¥833.94; non-GAAP EBITDA was ¥2,065.7bn with an 83.3% margin.

• H1 IFRS revenue was ¥4,247.2bn, operating profit ¥3,264.7bn and profit attributable to owners ¥2,197.9bn; H1 non-GAAP operating profit was ¥3,314.5bn.

• Core free cash flow was ¥1,438.0bn; H1 operating cash flow was ¥2,379.6bn and cash and equivalents ended September at ¥1,397.3bn.

Outlook and guidance

• Q3 guidance: revenue ¥2,500bn, non-GAAP operating profit ¥2,000bn, non-GAAP net income ¥1,365bn and EPS ¥854.24; IFRS operating profit guidance is ¥1,995bn and owner profit ¥1,360bn.

• Q3 revenue is guided +0.8% QoQ; operating profit is expected broadly flat as strong data-center demand is offset by FX headwinds.

• Q3 shipments are expected broadly flat QoQ as some long-lead-time orders shift to Q4; management expects a significant Q4 volume increase and stronger growth momentum.

• FY2026 bit shipment growth is expected in the high teens YoY; CY2027 market bit growth is forecast in the low-20% range, with shipments tracking the market and production capacity fully allocated.

• Q3 guidance assumes a JPY55bn negative FX impact from a four-yen move; excluding FX, volume and ASP are expected to contribute positively overall.