SanDisk Revenue Soars 378% to $11.031 Billion in First Quarter
Key Facts
SanDisk reported results on October 29 for the first fiscal quarter of 2027, which ended on October 2, with revenue of $11.031 billion, up 23% from the previous quarter and 378% from the same period last year. Revenue rose from $8.965 billion in the previous quarter and $2.308 billion a year earlier, a jump reflecting the expansion of activity over the year. Revenue exceeded analysts’ estimate of $10.7 billion, while diluted non-GAAP earnings per share came to $49.51, above the estimate of $47.15, according to Investing.com coverage. In its results statement, the company said GAAP net income was $8.101 billion, up 17% quarter over quarter. Diluted earnings per share under the same standard were $52.60, up 20% from the previous quarter.
Data centers led the sources of revenue growth, with the segment posting $4.802 billion, up 61% from the previous quarter. Edge revenue was about $5.832 billion, up 7% quarter over quarter, while consumer revenue fell to $397 million. The consumer figure represents a 29% quarterly decline and a 39% annual decline, in a direction opposite to the growth in the other two segments. Chief Executive David Goeckeler said, "Strong and growing demand for our products is driving faster growth in our data center business." Goeckeler also linked the generation of growing and sustainable free cash flow to technology, partnerships and financial discipline, according to the company statement.
The company attributed about 60% of the quarterly revenue increase to sales-volume growth and about 40% to higher prices, according to its results presentation. Non-GAAP gross margin rose to 85.1% from 84.6% in the previous quarter, while GAAP gross margin was 85.0%. Diluted non-GAAP earnings per share also rose from $1.22 in the same period last year to $49.51 in the first quarter of 2027. Adjusted free cash flow was $5.696 billion, compared with $5.035 billion in the previous quarter, an increase of 13%. These indicators, along with data center revenue growth, show a broadening improvement in the company’s results and operating metrics during the quarter.
SanDisk said new business-model agreements cover about half of bit shipments in fiscal 2027 and about two-thirds in 2028, with a weighted average term exceeding 4 years and potentially reaching 5 years. The minimum contracted revenue under these agreements, at floor pricing, was $93.9 billion, while remaining performance obligations totaled $88.9 billion at quarter-end. The company said customer signals through these partnerships extend beyond fiscal 2030. At the market level, SanDisk expects data centers to account for more than 55% of the market in 2027, and data center bit demand to grow by about 40% during the year, after more than doubling in 2026. These forecasts provide the company’s rationale for its bet on continued expansion in data center demand.
For the second quarter of fiscal 2027, the company expects revenue of between $12.2 billion and $12.6 billion, above analysts’ average estimate of $12.29 billion, according to Investing.com. It also forecast diluted non-GAAP earnings per share of between $55 and $57 on a pre-split basis, above the consensus estimate of $54.69. The company plans an 8-to-1 forward stock split, with shareholders of record on November 9 to receive 7 additional shares for each share they own. The additional shares are scheduled to be issued after the market closes on November 19, with split-adjusted trading to begin at the market open on November 20, 2026. After the results were announced, the stock fell 5.32% in regular trading to $1,330.05, then declined 2.63% after the close to $1,295.05, taking its total drop to about 7.8% from the previous close, according to Investing.com.