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Kioxia shares jump on strong financial results and potential for first dividend
Thursday, January 29, 2026 at 07:53 AM
Kioxia shares surged by up to 15% following a strong earnings report, leading to increased market expectations for the company's first dividend payment.
Context
Kioxia shares jumped 15% on February 12, 2026, following fiscal third-quarter results that significantly beat market estimates. Revenue rose 21.2% year-over-year to ¥543.6 billion, while non-GAAP profits surged 115% to ¥89.5 billion. This performance was driven by a 23% revenue spike in the SSD segment as surging AI data center demand continues to push average selling prices higher across the industry.
The company issued aggressive guidance for the quarter ending March 2026, forecasting revenue as high as ¥935 billion. Significantly, Kioxia confirmed that its entire NAND production capacity is already sold out for the remainder of 2026, underscoring a critical supply-demand imbalance in the global AI supply chain. This scarcity is expected to sustain elevated margins and pricing power through the upcoming fiscal year.
Investors are now pricing in Kioxia’s first-ever dividend, which analysts anticipate could be announced by mid-2026 as the company reaches a net cash position. This transition from debt reduction to shareholder returns, combined with high-margin AI infrastructure demand, marks a major structural turnaround for the Japanese memory giant and its global supply chain partners.
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