SanDisk Revenue Jumps 378% to $11.031 Billion in First Quarter
Key Facts
SanDisk reported on October 29 results for the first quarter of fiscal 2027, ended October 2, with revenue of $11.031 billion, up 23% from the previous quarter and 378% from the same period last year. Revenue was higher than $8.965 billion in the previous quarter and $2.308 billion a year earlier. According to Investing.com, revenue exceeded analysts’ average estimate of $10.7 billion, while non-GAAP earnings per share of $49.51 also topped their estimate of $47.15. Net income under generally accepted accounting principles was $8.101 billion, while diluted GAAP earnings per share reached $52.60. The figures reflect the company’s expanding growth over the year, with its results highlighting data centers as a key driver of demand.
Data center revenue was $4.802 billion, up 61% from the previous quarter, while Edge revenue was about $5.832 billion, up 7%. By contrast, consumer revenue fell 29% to $397 million, leaving the three segments on different trajectories during the period. CEO David Goeckeler said, "Strong and growing demand for our products is driving faster growth in our data center business." Goeckeler linked the company’s ability to generate growing and sustainable free cash flow to its technology leadership, partnerships and financial discipline. The results put data center growth at the forefront of the expansion, while consumer revenue continued to lag the other segments.
The company attributed about 60% of the quarterly revenue increase to higher sales volumes and about 40% to higher prices. Non-GAAP gross margin was 85.1%, compared with 84.6% in the previous quarter, an increase of 0.5 percentage points. Adjusted free cash flow reached $5.696 billion, up 13% from the previous quarter, which recorded $5.035 billion. These metrics show that revenue growth coincided with higher margins and adjusted cash flow. The company also repurchased about 3.2 million shares for $5.0 billion during the quarter. Total share repurchases over the last two fiscal quarters amounted to 6.0 million shares worth $9.5 billion.
The quarterly comparison showed successive acceleration in revenue during fiscal 2026, from $2.308 billion in the first quarter to $3.025 billion in the second quarter, then $5.950 billion in the third quarter and $8.965 billion in the fourth quarter. First-quarter 2027 revenue came in at $11.031 billion, continuing the upward trend. The company 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 calendar year. The company had said this demand more than doubled in 2026. These forecasts provide context for its assertion that sector demand is supporting the growth of its business, alongside contributions from the Edge segment.
For the second quarter of fiscal 2027, SanDisk expects revenue of between $12.2 billion and $12.6 billion, and non-GAAP diluted earnings per share of between $55 and $57 on a pre-split basis. It also announced an 8-for-1 forward stock split; shareholders of record at the close on November 9 will receive 7 additional shares for each share they own. The additional shares are due to be issued after the market closes on November 19, with split-adjusted trading to begin at the opening on November 20, 2026. The stock closed at $1,330.05 on October 29, down from $1,404.77 in the previous session. Investing.com reported that the stock fell 1.8% in volatile after-hours trading following the results announcement.