Kioxia stock climbed 6.9% to ¥49,690 on Monday after the memory-chip maker released a set of results and corporate actions that exceeded market expectations.
For fiscal Q1 FY2026 the company reported revenue of JPY 1.77 trillion, a year-over-year increase of 415.5%. Operating profit for the quarter was JPY 1.33 trillion, representing a 75% margin. Management noted that the quarterly operating profit alone was larger than the company’s total profit for fiscal 2025.
Alongside the results, Kioxia announced a JPY 800 billion share repurchase program and a 3-for-1 stock split. Company disclosures also stated that Kioxia had achieved a net cash position following repayment of its debt. The mix of outsized profitability, capital returns and a cleaned-up balance sheet drove buying interest on the earnings release day and continued to support the stock on Monday.
Looking ahead, Kioxia provided guidance for the second quarter, forecasting revenue of JPY 2.39 trillion, which would represent a sequential rise of about 35%. The company projected operating profit of JPY 1.9 trillion for Q2. Management attributed the improved outlook to roughly a 70% increase in blended NAND selling prices and ongoing volume growth tied to AI infrastructure buildout.
Management also flagged an expectation of a NAND supply deficit in 2027. That forecast underpins the view that pricing power in NAND could strengthen, a thesis that has helped sustain bullish sentiment among analysts. The consensus target price cited in connection with this optimism sits around ¥114,500, implying substantial upside relative to the recent share price even after the latest gains.
The share strength also came amid a broader rebound for Japanese chip and technology stocks, which have been recovering from steep losses recorded in July. That market backdrop provided additional support for Kioxia as investors rotated back into semiconductor-related names.
Overall, the combination of exceptional quarterly profitability, a large buyback and stock split, a move to net cash, and a near-term revenue and profit upgrade tied to higher NAND prices and volume gains has driven renewed investor interest in Kioxia.