Sandisk Revenue Jumps 378% Year Over Year to $11.031 Billion in First Quarter
Key Facts
Sandisk reported total revenue of $11.031 billion in the first fiscal quarter of 2027, up 23% from the previous quarter and 378% from the same period a year earlier. Results were supported by a 61% quarterly jump in data center revenue to $4.802 billion, from $2.977 billion in the fourth fiscal quarter of 2026. Growth in the business outpaced the increase in total revenue quarter over quarter, making it the company’s fastest-growing activity. Chief Executive David Goeckeler said, "Strong and growing demand for our products is driving outsized growth in our data center business." The figures highlight how demand tied to AI infrastructure is translating into actual revenue from high-performance storage products and NAND memory.
Total revenue was $8.965 billion in the fourth fiscal quarter of 2026 before rising to its latest level, compared with $2.308 billion in the first fiscal quarter of 2026. The comparison shows that the annual increase was far wider than the change between the two latest quarters, with quarterly revenue growth of 23%. According to the company’s earnings presentation, about 60% of the quarterly increase came from higher sales volumes, while higher prices contributed about 40%. This mix means the expansion was not driven by prices alone: increased volumes accounted for the larger share of the increase, while prices added the rest. These details provide a view of the components of growth alongside the expansion of the data center business, without reducing the results to the effect of a single factor.
Strong performance extended to gross margin, which was 85.1% on the company’s non-GAAP basis, compared with 84.6% in the previous quarter. Gross margin on a GAAP basis was 85.0% in the first fiscal quarter of 2027. The difference between the measures underscores the need to specify the basis of comparison when assessing profitability, particularly as adjusted margin reached a higher level than in the previous quarter. GAAP net income rose to $8.101 billion from $6.903 billion in the fourth fiscal quarter of 2026, a quarterly increase of 17%. Net income growth therefore came in below quarterly revenue growth, while non-GAAP gross margin improved by 0.5 percentage points from the previous quarter.
Across the company’s segments, Edge revenue rose 7% quarter over quarter to $5.832 billion, compared with $5.432 billion in the previous quarter. By contrast, consumer revenue fell 29% to $397 million from $556 million. This divergence places data center growth in a broader picture of differing demand trends across Sandisk’s businesses, with data center and Edge expanding as consumer revenue contracted. During the quarter, the company returned $5 billion to shareholders by repurchasing about 3.2 million shares. The buybacks came in the same period that the company recorded GAAP net income of $8.101 billion.
Sandisk links AI infrastructure growth to increased demand for high-performance storage products, while saying that adoption of AI applications is increasing the need for NAND storage. The company expects AI-driven demand to continue through 2027 and beyond. In previous investor materials, Sandisk said its agreements cover an expected volume of bits equivalent to about 50% of expected bit volume for fiscal 2027 and about two-thirds for fiscal 2028; this is expected coverage under the agreements, not confirmed supply. This places long-term demand expectations alongside quarterly results without changing their estimated nature. The company said AI-related demand is likely to continue "through calendar year 2027 and beyond."
For the second fiscal quarter of 2027, Sandisk expects revenue of between $12.2 billion and $12.6 billion and non-GAAP gross margin of between 84.5% and 85.5%. It also expects diluted earnings per share of between $55 and $57 before the impact of the stock split. The outlook follows first-quarter revenue of $11.031 billion and adjusted gross margin of 85.1%, providing a direct comparison with those results. SNDK shares closed at $1,150.89 on October 30, 2026. In premarket trading that day, Investing.com said the stock was down 4.3% after a decline that began following the results announcement on the evening of October 29.