$SNDK · Sandisk Corp
Sandisk Corporation filed its Q1 FY2027 10-Q for the quarter ended October 2, 2026. Revenue exploded to $11.031B (+378% YoY), gross margin hit 85.0%, and net income reached $8.101B ($52.60 diluted EPS). The quarter included a $513M gain on equity securities and $5.0B in share repurchases.
- Revenue of $11.031B, up 378% YoY from $2.308B, driven by a 1,685% increase in datacenter revenue to $4.802B.
- Gross margin expanded to 85.0% from 29.8% a year ago; operating margin reached 79.6%.
- Net income of $8.101B ($52.60 diluted EPS) vs. $112M ($0.75) in the prior-year quarter.
- Gain on equity securities contributed $513M to pre-tax income; interest expense fell to $2M from $40M.
- Company repurchased $5.0B of common stock during the quarter; treasury stock balance rose to $9.581B.
Extended-hours last trade at $1,149.08, down 0.16% from the regular close of $1,150.89 — a muted reaction given the massive earnings beat. The stock was already down 13.47% in the regular session, suggesting the blowout quarter may have been priced in or overshadowed by broader market concerns.
A 378% revenue surge and 85% gross margin in a historically cyclical NAND business signals a structural shift driven by AI datacenter demand, not just an upcycle.
Datacenter revenue grew 1,685% YoY to $4.8B, reflecting the AI-driven buildout cycle that is reshaping the NAND flash memory industry. Edge revenue also surged to $5.8B from $1.4B, while consumer declined to $397M from $652M.
Two customers each accounted for 12% of net revenue, creating significant customer concentration risk. Forward-looking statements flag tariff and trade policy exposure, NAND pricing volatility, and reliance on the Kioxia joint venture.