Key Highlights

  • Revenue was $11,031 million, up 23% from the prior quarter and 378% from $2,308 million a year earlier.
  • GAAP diluted EPS was $52.60, and non-GAAP diluted EPS was $49.51, both on a pre-split basis.
  • Datacenter Revenue reached $4,802 million, up 61% sequentially.
  • The company repurchased about 3.2 million shares for $5.0 billion in the quarter.
  • Second quarter revenue is guided to $12.2 billion to $12.6 billion, with non-GAAP EPS of $55.00 to $57.00.

Revenue of $11.0 billion marks a 378% jump from a year earlier

Sandisk (NASDAQ:SNDK), a vertically integrated semiconductor company in Milpitas, California, designs and manufactures memory technologies, from enterprise solid state drives used in AI infrastructure to consumer devices. It reported fiscal first quarter 2027 results, for the quarter ended October 2, 2026, on October 29, 2026.

Revenue was $11,031 million, up 23% from $8,965 million in the fourth quarter of fiscal 2026 and up 378% from $2,308 million in the year earlier quarter. CEO David Goeckeler said datacenter growth outpaced the rest of the business.

Datacenter becomes a far larger share of the mix

Datacenter revenue was $4,802 million, up 61% from $2,977 million in the prior quarter, compared with $269 million a year earlier. Edge revenue was $5,832 million, up 7% sequentially and 320% year over year, while Consumer revenue fell 29% sequentially to $397 million and was down 39% from $652 million.

On a calculated basis, datacenter made up about 43.5% of total revenue this quarter, compared with roughly 11.7% a year earlier.

Gross Margin of 85.0% and a profit surge reshape the income statement

GAAP gross margin was 85.0%, up from 84.6% in the previous quarter and 29.8% a year ago. GAAP operating expenses were $598 million, up 17% year over year, and GAAP Operating Income was $8,780 million versus $176 million.

GAAP Net Income was $8,101 million, or $52.60 per diluted share, compared with $6,903 million, or $43.97, in the prior quarter and $0.75 a year earlier. Non-GAAP net income was $7,624 million, or $49.51 per share, versus $39.25 in the prior quarter. The GAAP figure included a $513 million net gain on Equity securities, which the non-GAAP measure excludes.

Cash generation and a $5.0 billion buyback

Cash flow from Operating Activities was $6,363 million, a 57.7% margin, and free Cash Flow was $6,309 million. Adjusted free cash flow was $5,696 million, or 51.6% of revenue.

Cash and cash equivalents were $5,136 million at October 2, 2026, up from $4,762 million at July 3, 2026. During the quarter Sandisk repurchased about 3.2 million shares for $5.0 billion. Across the past two fiscal quarters it bought back 6.0 million shares, around 4% of shares outstanding.

An eight-for-one Stock Split arrives November 19, 2026

The board approved an eight-for-one forward split, with holders of record on November 9, 2026 receiving seven additional shares for each share held, issued after market close on November 19, 2026. Trading on a post-split basis is expected to begin at the market open on November 20, 2026. The company said market Capitalization and ownership percentages are unaffected.

All per-share figures in the release are on a pre-split basis. Management said the split is meant to make the stock more accessible, including to employees through the employee stock purchase plan.

Second-quarter guidance sets the next marker

For the fiscal second quarter of 2027, Sandisk expects revenue of $12.2 billion to $12.6 billion and non-GAAP gross margin of 84.5% to 85.5%. Non-GAAP operating expenses are guided to $540 million to $560 million. Non-GAAP diluted EPS is expected at $55.00 to $57.00 on a pre-split basis.