Sandisk beats fiscal Q1 estimates as AI data-center sales surge

Sandisk exceeds first-quarter estimates

Sandisk Corporation reported fiscal first-quarter 2027 revenue of $11.03 billion for the quarter ended September 2026, up from $2.31 billion a year earlier, according to earnings coverage published October 29, 2026. Adjusted earnings were $49.51 per share, compared with $1.22 a year earlier, Zacks reported. The adjusted figure exceeded Zacks’ consensus estimate of $47 per share by 5.34%.

Revenue also surpassed the $10.7 billion consensus projection cited in separate October 30 reporting. The earnings call transcript identifies the company’s adjusted EPS as $49.51 and revenue as $11.03 billion, while the related market report described the results as exceeding Wall Street expectations.

Data-center revenue drives the quarter

Data-center revenue reached $4.8 billion, a 61% sequential increase, as Sandisk allocated more supply to the segment and AI workloads increased demand for NAND used in inference, key-value caches, data staging and data lakes. Management said its products and partnerships with three U.S. hyperscalers supported the expansion, according to the earnings-call highlights published October 29.

Edge revenue was $5.8 billion, up 7% sequentially, while the consumer segment weakened. The reviewed reporting did not provide a complete quantified account of that consumer decline in the available excerpt.

Profitability and cash generation reached high levels

Sandisk reported a non-GAAP gross margin of 85.1%, adjusted free cash flow of $5.7 billion and $5 billion of stock repurchases during the quarter. These figures accompanied adjusted EPS of $49.51 and should not be treated as GAAP results.

The gross-margin figure drew investor attention because of questions about whether it represented a near-term peak. Separate market coverage also cited slower sequential revenue growth—23% in the latest quarter compared with 51% in the prior quarter—as a concern despite the headline earnings beat.

Sandisk issues next-quarter guidance

Sandisk forecast fiscal second-quarter revenue of $12.2 billion to $12.6 billion. The company said it expected continued benefits from long-term customer agreements and that roughly half of fiscal 2027 bits were already covered, according to the October 29 earnings-call coverage. That coverage represents disclosed forward-looking coverage, not realized revenue or guaranteed bookings.

Management attributed the quarter’s performance to its technology roadmap, customer relationships and financial discipline. The company also expects AI data-center flash demand to expand as inference workloads require more storage capacity, although those statements were forward-looking company expectations rather than completed outcomes.

Shares fell despite the earnings beat

The stock declined 4.3% in pre-market trading in coverage published October 30, extending a post-earnings selloff. The report said investors were weighing sequential growth, the sustainability of the non-GAAP gross margin, consumer weakness, insider selling and a broader technology-sector pullback. Those factors were presented as investor concerns; the reviewed reports did not establish a single cause for the share-price decline.

Sandisk also approved an eight-for-one stock split. The available reports differ on the exact effective date: one says split-adjusted trading is scheduled to begin November 20, while another says the split is effective November 19, 2026.