TLDR
- Sandisk shares climb 2.87% in after-hours trading following fiscal Q1 results showing 61% data center revenue growth.
- Company delivers $11.03 billion quarterly revenue with earnings soaring 378% compared to prior year.
- Eight-for-one forward stock split announced to enhance share accessibility for investors and employees.
- Management projects fiscal Q2 revenue reaching as high as $12.6 billion, indicating continued momentum.
- Share repurchase program continues with $5 billion in stock bought back during the quarter.
Sandisk Corporation (SNDK) experienced a 5.32% decline during regular trading hours, closing at $1,330.05, before mounting a 2.87% recovery in extended trading to reach $1,368.28. The volatility surrounded the release of fiscal first-quarter financial results that demonstrated robust revenue expansion and significant earnings improvement. Alongside the financial performance, the storage technology company revealed plans for an eight-for-one stock split while providing optimistic second-quarter revenue projections.
First Quarter Performance Delivers Exceptional Revenue and Earnings Expansion
Sandisk disclosed fiscal first-quarter 2027 revenue totaling $11.031 billion, marking a 23% sequential improvement from the prior quarter. On a year-over-year basis, revenue surged 378% from $2.308 billion, demonstrating remarkable expansion throughout the company’s product portfolio. The period also witnessed substantial earnings acceleration as customer demand for storage solutions intensified.
The company posted GAAP net income of $8.101 billion, advancing from $6.903 billion in the fourth quarter. Diluted earnings per share on a GAAP basis increased 20% sequentially to $52.60, while the non-GAAP measure reached $49.51 per diluted share. Non-GAAP net income climbed 24% quarter-over-quarter to $7.624 billion.
Profitability metrics showed continued improvement throughout the reporting period as operational efficiency gains materialized. GAAP gross margin expanded to 85.0% from 84.6% in the preceding quarter. Similarly, non-GAAP gross margin improved to 85.1%, while non-GAAP operating income advanced 25% to $8.871 billion.
Storage Infrastructure Segment Powers Performance With 61% Sequential Jump
Sandisk’s data center operations emerged as the standout performer during the fiscal first quarter of 2027. This critical segment produced $4.802 billion in revenue, representing a 61% sequential surge from the $2.977 billion recorded in the prior quarter. The substantial acceleration underscored the expanding importance of data center storage solutions within the company’s revenue mix.
The edge computing segment contributed $5.832 billion in revenue, posting a 7% sequential increase from $5.432 billion in the fourth quarter. Conversely, consumer-focused revenue contracted 29% to $397 million from $556 million sequentially. The divergent trajectories illustrated that enterprise-oriented segments fueled overall growth while consumer markets faced headwinds.
Annual comparisons further emphasized the magnitude of Sandisk’s revenue transformation across key business units. Edge revenue jumped 320% from $1.387 billion year-over-year, while data center revenue expanded dramatically from just $269 million in the comparable quarter. Consumer revenue, meanwhile, declined 39% from the $652 million recorded during the prior-year period.
Forward Split and Optimistic Outlook Accompany Strong Quarterly Results
Concurrent with the earnings release, Sandisk unveiled an eight-for-one forward stock split designed to enhance share accessibility for a broader investor base. According to the plan, shareholders holding stock as of the November 9, 2026 record date will receive seven additional shares for each existing share owned. Distribution of the additional shares is scheduled to occur following the close of trading on November 19, 2026.
Split-adjusted trading will commence at the opening bell on November 20, 2026. The stock split will maintain the company’s aggregate market capitalization while preserving each shareholder’s proportional equity interest. Management also emphasized that the action will facilitate broader employee participation through the company’s employee stock purchase program.
For the fiscal second quarter of 2027, Sandisk projected revenue in the range of $12.2 billion to $12.6 billion. Management also forecasts non-GAAP diluted earnings per share between $55.00 and $57.00 on a pre-split basis. The outlook signals expectations for additional sequential expansion following the company’s impressive first-quarter results.
Sandisk maintained an aggressive capital allocation strategy through significant share repurchases executed during the quarter. The company acquired approximately 3.2 million shares for $5 billion throughout the reporting period. Over the past two fiscal quarters combined, Sandisk has repurchased six million shares, equivalent to roughly 4% of total outstanding shares.
The company’s quarterly performance reflected substantial progress across multiple dimensions, combining exceptional financial results with significant data center revenue acceleration and the announcement of a planned stock split. The second-quarter revenue projection reinforces management’s confidence in sustained business momentum. The forthcoming split will modify the share count and per-share valuation while preserving the company’s total market capitalization.
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