What happened
Sandisk Corporation (NASDAQ: SNDK) reported fiscal first-quarter revenue of $11.0 billion, up 23% from the prior quarter. It guided the next quarter higher.
GAAP net income was $8.1 billion, or $52.60 a diluted share, up 20% per share from the fourth quarter. Non-GAAP earnings were $49.51 a share. Every per-share figure in the earnings release is stated before the stock split.
For the fiscal second quarter, Sandisk expects revenue of $12.2 billion to $12.6 billion. It expects Non-GAAP diluted earnings of $55.00 to $57.00 a share on a pre-split basis.
The company also approved an eight-for-one forward stock split. Stockholders of record on Nov. 9 receive seven more shares for each share held, issued after the market close on Nov. 19.
Key numbers
| Metric | Latest | Change | Source |
|---|---|---|---|
| Fiscal Q1 2027 revenue | $11.0 billion | from $2.31 billion, +378% | SEC 8-K, Exhibit 99.1 |
| GAAP net income | $8.1 billion | from $112 million | SEC 8-K, Exhibit 99.1 |
| GAAP gross margin | 85.0% | from 29.8%, +55.2 percentage points | SEC 8-K, Exhibit 99.1 |
| Non-GAAP diluted EPS (pre-split) | $49.51 | from $1.22 | SEC 8-K, Exhibit 99.1 |
| Fiscal Q2 2027 revenue guidance | $12.2 billion to $12.6 billion | SEC 8-K, Exhibit 99.1 | |
| Share repurchases in the quarter | $5.0 billion | SEC 8-K, Exhibit 99.1 |
Read more: Sandisk (SNDK) company research
Where the revenue came from
Data center drove the sequential gain. Its revenue rose 61% to $4.80 billion from $2.98 billion in the fourth quarter. Edge revenue rose 7% to $5.83 billion, and consumer revenue fell 29% to $397 million.
Chairman and CEO David Goeckeler pointed to growing demand for Sandisk's products and faster growth in data center. A year earlier, data center revenue was $269 million.
Total revenue rose 378% from $2.31 billion in the same quarter a year earlier. GAAP gross margin was 85.0%, against 29.8% then. GAAP operating income reached $8.78 billion, up from $176 million.
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Why it matters
Sandisk is guiding to another step up. Revenue grew $2.07 billion on the fourth quarter's $8.97 billion. The $12.4 billion midpoint of second-quarter guidance would be 12.4% above first-quarter revenue, by OptimistFi's calculation.
GAAP gross margin guidance of 84.4% to 85.4% brackets the margin Sandisk just reported. The outlook rests on volume, not wider margins.
OptimistFi has argued that Sandisk's stock works if the fiscal 2027 profit surge proves to be more than a cyclical peak. Sequential growth, a guide for more and steady margins strengthen that view for now. One quarter's outlook does not settle the question.
Not all of the profit is operating. GAAP results include a $513 million gain on equity securities, which is 5.5% of $9.32 billion in pre-tax income by OptimistFi's calculation. Non-GAAP net income of $7.62 billion rose 24% from the fourth quarter, faster than the 17% for GAAP net income. The outlook also excludes $146 million to $197 million of items, including stock-based compensation.
Cash collection trails sales. Accounts receivable rose to $6.59 billion from $4.71 billion at July 3. That was a $1.88 billion drag on operating cash flow, which still reached $6.36 billion.
Buyback and split
Sandisk spent $5.0 billion on buybacks in the quarter, repurchasing about 3.2 million shares. Over the past two fiscal quarters it has repurchased 6.0 million shares, about 4% of shares outstanding. Shares outstanding were 144 million at Oct. 2, down from 146 million at July 3.
Free cash flow was $6.31 billion. Adjusted free cash flow was $5.70 billion, a 51.6% margin. Cash and cash equivalents ended the quarter at $5.14 billion, up from $4.76 billion at July 3.
The split changes the share count, not the size of a holding. Sandisk says its market capitalization and ownership percentages are unaffected. It says the move makes the stock more accessible, including to employees through its employee stock purchase plan. Authorized shares rise from 450 million to 3.6 billion.
What's next
Split-adjusted trading is expected to begin at the market open on Nov. 20 under the same SNDK symbol. Sandisk's per-share guidance is stated pre-split, so comparisons after that date need to account for the ratio.
The next test is the fiscal second-quarter report against the revenue and earnings ranges above. Revenue within or above the range, with margins near this quarter's, would strengthen the case. A gross margin below the low end of the guided range would weaken it.
The first-quarter figures can still change. Sandisk says results in its Form 10-Q may differ after financial closing procedures and the independent accounting firm's review.
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Sources
- Sandisk Corporation Exhibit 99.1, fiscal first quarter 2027 earnings release — Results, outlook, stock split terms, GAAP to non-GAAP reconciliations and financial statements dated Oct. 29, 2026.
- Sandisk Corporation Form 8-K — Items 2.02 and 8.01: results announcement and details of the eight-for-one stock split and charter amendment.
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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
