Japan's Kioxia expects to report an operating profit of 1.89 trillion yen ($11.78 billion) in the July-September quarter, according to a company announcement.
Kioxia's projected July-September operating profit.
The company's projection is slightly below the average estimate of 1.95 trillion yen from eight analysts surveyed by LSEG. the company itself pointed to continued growth in the chip market.
Kioxia reported an operating profit of 1.27 trillion yen ($8 billion) for the April-June quarter, a 28-fold increase year on year. Net profit for the period surged 46-fold to 842.17 billion yen, and sales revenue rose more than fivefold to 1.77 trillion yen.
The strong quarterly performance was driven by robust memory-chip sales for data centers and rising AI-driven demand. Kioxia, which produces memory chips for computers, smartphones and digital devices, said artificial intelligence investment is boosting demand for its products.
For its fiscal half-year, the company forecasts operating income of 3.16 trillion yen. Kioxia also plans to spend up to 800 billion yen buying back up to 30 million shares and will conduct a three-for-one stock split effective October 1.
The company did not announce full fiscal-year expectations for April 2026 to March 2027. Kioxia Holdings Corp., based in Tokyo,