Sandisk Datacenter Sales Hit $4.8 Billion

The Tip Desk · October 29, 2026 · 2 min read

Fiscal first-quarter revenue reached $11.03 billion, up 23% sequentially, as the company guided second-quarter sales to $12.2 billion to $12.6 billion.

Sandisk Corporation (SNDK) reported fiscal first-quarter revenue of $11.03 billion, up 23% sequentially, as datacenter demand continued to outpace the rest of the memory business.

The sequential growth rate slowed from a 51% increase in the fiscal fourth quarter. GAAP net income was $8.10 billion, or $52.60 a share, up 20% from the prior quarter. Non-GAAP diluted earnings were $49.51 a share.

Chairman and Chief Executive Officer David Goeckeler said the company had started fiscal 2027 with another quarter of strong performance, with robust and growing demand driving outpaced growth in the datacenter business.

Datacenter revenue was $4.80 billion, up 61% sequentially. Edge revenue was $5.83 billion, up 7%, making Edge the largest end market by sales. Consumer revenue was $397 million, down 29%.

GAAP gross margin was 85.0%, up 0.4 percentage points sequentially. Non-GAAP gross margin was 85.1%. GAAP operating income was $8.78 billion, up 25% sequentially. GAAP operating expenses were $598 million.

The company returned $5.0 billion to stockholders through the repurchase of about 3.2 million shares in the quarter. Over the past two fiscal quarters it repurchased 6.0 million shares, about 4% of shares outstanding.

Sandisk also announced an eight-for-one forward stock split, effective November 19, 2026, to make the stock more accessible, including to employees through its employee stock purchase plan. Stockholders of record as of the close of business on November 9 will receive seven additional shares for each share held. Trading is expected to begin on a post-split adjusted basis at the market open on November 20.

Cash and cash equivalents were $5.14 billion at October 2, 2026, versus $4.76 billion at July 3. Accounts receivable were $6.59 billion. Cash flow from operating activities was $6.36 billion, down from $7.13 billion in the prior quarter. Free cash flow was $6.31 billion. Adjusted free cash flow was $5.70 billion. Operating cash flow margin was 57.7%, down from 79.5%. Adjusted free cash flow margin was 51.6%.

The company expects second-quarter 2027 revenue of $12.2 billion to $12.6 billion, with Non-GAAP diluted net income per share on a pre-split basis of $55.00 to $57.00. It guided GAAP gross margin of 84.4% to 85.4% and Non-GAAP gross margin of 84.5% to 85.5%.

Goeckeler said the company is executing on the strategy outlined at Investor Day, delivering growing and durable free cash flow through technology leadership, deep customer partnerships, and disciplined financial management.