Kioxia Holdings Corp.
, a Japanese memory chipmaker, announced on July 31, 2026, that it expects an operating profit of 1.89 trillion yen ($11.78 billion) for the July-September quarter.
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This projection is fueled by robust demand for artificial intelligence infrastructure.
The forecast follows an operating profit of 1.27 trillion yen reported for the April-June quarter.
The second-quarter figure slightly trails the average estimate of 1.95 trillion yen from a survey of eight analysts by LSEG.
To strengthen its capital structure and signal market stability, Kioxia plans a share buyback program of up to 800 billion yen, covering as many as 30 million shares.
The company also confirmed a three-for-one stock split effective October 1.
This announcement comes after Kioxia's shares fell 65% from an all-time peak of 112,700 yen on June 22.
The decline erased roughly $245 billion in market capitalization following a broader July selloff in global AI-related memory chip stocks.
A Kioxia spokesperson said the company continues to evaluate buyback strategies without making concrete decisions prior to the announcement.
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Analysts noted that management aimed to prioritize dividend payouts while retaining flexible capital allocation strategies during its June investor presentation.
"A buyback could send a signal that management views the stock as oversold," said Ikuo Mitsui, a fund manager at Aizawa Securities.
Steady long-term supply agreements and solid data center demand continue to support Kioxia's free cash flow despite market volatility.
