Kioxia (285A) Q3 2026 earnings summary

Executive summary

• Achieved record-high Q3 FY2025 revenue and profits, driven by strong AI demand in data center and enterprise segments, despite year-over-year declines for the nine months due to lower average selling prices.

• Non-GAAP operating profit and net income exceeded guidance upper limits in Q3; full-year sales and profit expected to hit record highs for the second consecutive year.

• Profit attributable to owners of parent for the nine months was ¥146.8 billion, down 41.8% year-over-year.

• The company operates as a single segment (Memory business), with revenue breakdowns for SSD & Storage, Smart Devices, and Other.

• Balance sheet strengthened, with net debt-to-equity ratio improving to 80% in Q3.

Financial highlights

• Q3 FY2025 revenue: ¥543.6 billion (QoQ +21.3%, YoY +20.8%).

• Non-GAAP operating profit: ¥144.7 billion (QoQ +66.0%, YoY +17.6%), margin 26.6%.

• Non-GAAP net income: ¥89.5 billion (QoQ +114.9%, YoY +17.3%), margin 16.5%.

• Free cash flow positive for eight consecutive quarters; Q3 FCF: ¥85.7 billion.

• Cash and cash equivalents at Q3-end: ¥281.5 billion.

Outlook and guidance

• Q4 FY2025 revenue guidance: ¥845.0–935.0 billion; full-year: ¥2,179.8–2,269.8 billion, up 27.7–33.0% year-over-year.

• Q4 non-GAAP operating profit guidance: ¥440.0–530.0 billion; full-year: ¥717.0–807.0 billion.

• Q4 non-GAAP net income guidance: ¥310.0–370.0 billion; full-year: ¥459.7–519.7 billion.

• Selling prices expected to rise across all applications in Q4, with further margin expansion.

• Q4 revenue and profit are expected to increase sequentially due to strong data center demand and higher selling prices.