Sandisk (SNDK) Q1 2027: Revenue Hits $11B on AI Storage

Sandisk posted record fiscal Q1 2027 revenue of $11B, guided Q2 to $12.2-12.6B and set an 8-for-1 stock split for Nov. 19 on AI data-center storage demand.

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What Did Sandisk Report for Fiscal Q1 2027?

Sandisk reported revenue of $11.03B, up 23% sequentially and 378% year over year, along with GAAP net income of $8.1B, or $52.60 per diluted share. Non-GAAP earnings were $49.51 per share, ahead of the roughly $46.22 consensus.

Profitability was the standout. Non-GAAP gross margin reached 85.1%, up 55.2 percentage points from a year earlier and above the 84.1% consensus. Non-GAAP operating income was $8.87B, up 25% from the previous quarter. Margins at that level are unusual for a hardware supplier and reflect tight supply and strong pricing in NAND flash, the memory used in solid-state drives.

Why Is AI Driving Sandisk's Storage Demand?

AI infrastructure is the main driver because model training and inference require large, fast storage pools alongside GPUs. Data-center revenue rose 61% sequentially to about $4.8B, making it the fastest-growing part of the business. It has also made Sandisk one of the more closely watched AI stocks in the memory and storage group.

The shift matters strategically. Sandisk built its franchise on consumer products such as cards and portable drives. Enterprise SSDs sold to hyperscale cloud operators carry higher prices and longer contracts. Memory peers such as Micron Technology (MU) are exposed to the same demand cycle, so Sandisk's results are a read on pricing across the sector.

What Does the Q2 Guidance Imply?

The Q2 range of $12.2-12.6B implies another sequential gain of roughly 11% to 14% from the $11.03B base. It would take quarterly revenue past the $12B mark for the first time. The outlook points to continued tightness in flash supply and sustained purchasing by cloud and AI customers.

Sandisk shares initially slid after the report and then recovered to trade about 3% higher after the close. The earlier weakness reflected how much of the strong quarter was already priced in. The recovery followed the guidance and the split announcement.

How Will the 8-for-1 Stock Split Work?

The eight-for-one forward split gives each holder seven additional shares for every share held. Stockholders of record at the close on Nov. 9, 2026 are eligible. The additional shares are issued after the market close on Thursday, Nov. 19, 2026, and trading on a split-adjusted basis begins afterward.

The company said the split is meant to make the stock more accessible, including to employees through its employee stock purchase plan. A split does not change market capitalization or a holder's proportional ownership. It lowers the per-share price, which can widen retail participation and make options contracts cheaper to trade.

Strategic Context

Sandisk operates as an independent, publicly listed company after separating from Western Digital (WDC) in early 2025. Its share price and earnings have risen sharply since then as flash pricing recovered and AI spending expanded. The latest quarter shows the business is now driven by data-center storage rather than consumer electronics cycles.

Key risks to the trajectory are the cyclical nature of memory pricing and the possibility that suppliers add capacity faster than demand grows. Customers' capital spending plans for AI infrastructure remain the main external variable.

Outlook

Sandisk enters its second fiscal quarter with record revenue, an 85.1% gross margin and guidance for further growth to as much as $12.6B. The split takes effect on Nov. 19, with Nov. 9 as the record date. The next test is whether data-center orders keep outpacing supply as the company reports Q2 results.