SanDisk Posts Record $11.031 Billion in Revenue as Memory Demand Surges
Key Facts
SanDisk reported revenue of $11.031 billion for the fiscal first quarter ended October 2, 2026, up 23% from the previous quarter and 378% from the same period a year earlier, beating analysts’ estimates as demand for data center-related memory accelerated. Net income under generally accepted accounting principles was $8.101 billion, or $52.60 per diluted share, while adjusted net income was $7.624 billion, or $49.51 per share. The per-share figures in the company’s announcement were calculated before the announced stock split. FactSet estimated adjusted earnings at $46.67 per share and revenue at $10.72 billion, meaning both results exceeded expectations. Chief Executive David Goeckeler said, "Strong and growing demand for our products is driving our data center business to grow faster than the company."
Much of the growth was concentrated in the data center segment, which posted revenue of $4.802 billion, up 61% from the fiscal fourth quarter of 2026, compared with $269 million in the first quarter of the prior fiscal year. In the Edge segment, revenue rose 7% quarter over quarter to $5.832 billion. Consumer revenue fell 29% from the previous quarter to $397 million. The divergence shows that expanding enterprise demand was not accompanied by comparable growth in the consumer business during the quarter. Dow Jones coverage says the boom in artificial intelligence infrastructure construction is supporting memory demand while supply remains limited, giving suppliers leverage in price negotiations; it also reported that major cloud computing companies are prepared to pay high prices for storage.
Revenue growth was accompanied by a sharp expansion in gross margins. The margin was 85.0% under generally accepted accounting principles and 85.1% on an adjusted basis, compared with 29.8% and 29.9%, respectively, in the first quarter of the prior fiscal year. Both margins increased 55.2 percentage points year over year. In the fiscal fourth quarter of 2026, revenue had risen 51% from the previous quarter, and the company said at the time that about one-third of the increase came from higher volumes and about two-thirds from higher prices. That provides context from the preceding quarter on the role of prices and volumes, while Dow Jones coverage describes supply constraints as a factor strengthening suppliers’ position in negotiations.
The company also posted strong cash flow alongside its earnings: operating cash flow was $6.363 billion, and adjusted free cash flow was $5.696 billion, with a margin of 51.6%. It also repurchased about 3.2 million shares during the quarter for $5.0 billion. Over the last two fiscal quarters, total repurchases reached 6.0 million shares, or about 4% of shares outstanding. These figures put cash flow and returning capital to shareholders among the period’s key features, alongside sales and margin growth. The available results did not provide further detail on the allocation of cash spending during the quarter.
For fiscal second-quarter 2027, SanDisk expects revenue of $12.2 billion to $12.6 billion and adjusted diluted earnings per share of $55 to $57, before accounting for the stock split. The company also announced a forward stock split at a ratio of 8-for-1; shareholders of record at the close on November 9 are entitled to the additional shares, which are to be issued after the market close on November 19, with split-adjusted trading to begin at the open on November 20, 2026. In a market snapshot published by MarketScreener via Dow Jones at 4:35 p.m. Eastern Time on October 29, the stock fell 5.32% after the results were announced. The company set November 17 as the date of its annual shareholder meeting. These developments combine higher guidance for the coming period with capital and share-related measures, while the stock move reflects the market reaction recorded in that time-stamped snapshot.