According to media reports, Kioxia recently released its financial report for the third fiscal quarter of fiscal year 2025 (as of December 31, 2025). Consolidated operations received 543.6 billion yen, a month-on-month increase of 21.3%, a year-on-year increase of 20.8%; net profit recorded 89.5 billion yen, a month-on-month increase of 114.9%, a year-on-year increase of 17.3%, and a profit margin of 16.5%.
Kioxia said that strong demand for artificial intelligence has driven sales performance in storage areas such as smart devices and SSDs, reaching a record high. Looking forward to the next fiscal quarter, revenue is expected to continue to rise, with a median of approximately 890 billion yen, significantly higher than the market average estimate of 648.2 billion yen.
In the subsequent earnings call, Kioxia revealed that its 2026 NAND flash memory production capacity has been fully booked, and the market supply is expected to remain tight throughout the year because the continued growth in data center demand may trigger supply constraints in the future.
The company has basically finalized the long-term agreement for 2026 and continues the contract policy of determining the scale annually and adjusting prices quarterly. Regarding the long-term supply proposals proposed by some very large-scale customers covering 2027 and 2028, the two parties are still actively negotiating.
At the same time, Kioxia and SanDisk recently announced that they will extend their joint venture agreement for a factory in Yokkaichi, Mie Prefecture, Japan for five years. The agreement originally scheduled to expire on December 31, 2029 has been extended to December 31, 2034.
The validity period of the joint venture agreement for the factory located in Kitakami, Iwate Prefecture will also be extended simultaneously. According to the terms of the renewal, SanDisk will pay US$1.165 billion in cash to Kioxia for manufacturing services and continued supply. The payment will be paid in installments from 2026 to 2029.
Kioxia also said that the price of DRAM used as SSD cache has increased significantly, and related factors have been included in its performance expectations. The company is considering the possibility of passing on additional costs to customers while mitigating the impact of rising DRAM prices on its SSD business through strict cost control measures.