Japanese NAND flash memory manufacturer Kioxia released its financial report on October 30th, showing revenue of 2.48 trillion yen for July-September 2026, with non-GAAP operating profit of 1.99 trillion yen and an operating profit margin of approximately 80%. However, the company projects revenue of 2.50 trillion yen for October-December, a mere 0.8% increase quarter-on-quarter; and non-GAAP operating profit of 2 trillion yen, a 0.6% increase quarter-on-quarter. Meanwhile, the company's financial materials marked 2027 capacity as "SOLD OUT," indicating that over half of its 2028 shipments are already covered by long-term contracts. Analyst Jukan raised questions about this: if future capacity is largely allocated, why is short-term revenue growth so limited? The company explained that data center demand remains strong, but the strengthening yen will offset some growth, and overall Q3 performance is expected to be roughly flat compared to Q2. This means that capacity sell-out and short-term revenue growth are not synchronized; long-term contracts provide visibility into medium-term demand, but specific pricing terms remain undisclosed.
