Kioxia Holdings' revenue more than quintupled in its 2026 results, while net profit came to ¥2.2 trillion. Driven by strong demand for generative AI, its share price surged, and its market capitalisation briefly surpassed Toyota, but the background includes its spin-off from Toshiba, its technological capabilities and risks ahead.
Kioxia, spun off from Toshiba, made a strong earnings recovery on the back of the spread of generative AI, with revenue more than quintupled and net profit reaching ¥2.2 trillion in its financial results. Its share price rose approximately tenfold in less than 6 months, and its market capitalisation briefly ranked first in Japan.
In terms of technology, it is building a competitive position against the Japan-U.S.-South Korea alliance, using BiCS FLASH 3D flash memory and CBA technology to improve manufacturing-process efficiency. Its main production bases are the Yokkaichi plant in Mie Prefecture and the Kitakami plant in Iwate Prefecture.
Against the backdrop of its listing, the memory business was spun off in 2017, followed by its sale in 2018, and the company name was changed to Kioxia in 2019. Although it continued to bear the effects of worsening market conditions and investment costs, its earnings recovered alongside the recovery in AI demand.
Risk factors identified include excess supply and falling prices resulting from the memory market's silicon cycle, as well as the risk of additional share sales by shareholders. The company remains at a stage where the scale of its future growth must be assessed.