Kioxia (285A) Q4 2026 earnings summary

Executive summary

• Technology leadership in AI and memory drove record revenue and profitability for the year ended March 31, 2026, with strong demand for 8th-gen BiCS FLASH, TLC, and QLC SSDs.

• Revenue for FY ended March 2026 rose 37% year-over-year to ¥2,337.6 billion, driven by higher ASPs and demand from AI/data center customers.

• Operating profit approximately doubled year-over-year, reflecting robust AI-driven demand and improved financial strength.

• The business operates as a single Memory segment, with SSD & Storage and Smart Devices as key product lines.

• Cash and cash equivalents at year-end increased to ¥470.7 billion, reflecting strong operating cash flow.

Financial highlights

• FY2025 revenue reached ¥2,337.6 billion, up 37% year-over-year, with record highs in gross profit (¥1,103.2 billion) and operating profit (¥876.2 billion).

• SSD & Storage revenue grew by ¥371.5 billion year-over-year to ¥1,362.6 billion; Smart Devices revenue increased by ¥258.8 billion to ¥760.0 billion.

• Q4 revenue was ¥1,002.9 billion, doubling quarter-over-quarter; Q4 operating profit was ¥599.1 billion, up 314% QoQ.

• Free cash flow for the year hit a record ¥395.0 billion, with Q4 FCF at ¥241.1 billion.

• Net debt-to-equity ratio improved to 39% from 126% the previous year.

Outlook and guidance

• FY2026 Q1 guidance projects revenue of ¥1,750.0 billion and operating profit of ¥1,300.0 billion, representing sequential increases of 74.5% and 117%, respectively.

• Bit growth rate for CY26 expected in the high teens, with demand anticipated to exceed supply in CY27.

• Strategic focus on expanding 8th-gen and launching 10th-gen BiCS FLASH, capital investment of ¥450 billion, and early repayment of ¥400 billion in senior loans.