SanDisk Reports Record Q1 Revenue Driven by AI Demand

SanDisk Corporation reported its fiscal first-quarter 2027 financial results, posting a revenue surge of 378% year-over-year to $11 billion. The performance easily surpassed analyst expectations, driven by an unprecedented increase in NAND demand tied to artificial intelligence inference workloads.

During the quarter ended September 2026, the company achieved adjusted earnings of $49.51 per share, outperforming the consensus estimate of $47 per share and coming in well above its own guided range of $44 to $46. This compared to earnings of $1.22 per share reported during the same period a year ago.

CEO David Goeckeler attributed the strong results to ongoing technology leadership and customer partnerships during an earnings call with analysts. "Our strategy is working, and our execution is delivering strong results," Goeckeler stated, adding that the business benefits from "three enduring strengths: technology leadership, deep customer partnerships, and disciplined financial management."

The standout performer for the quarter was the data center segment, which saw revenue soar 61% sequentially to $4.8 billion. Data center operations now account for approximately 44% of SanDisk's total revenue, up from 24.7% in the previous quarter. The company credited this growth to its BiCS8 technology and expanding relationships with major U.S. hyperscalers.

SanDisk also highlighted the continued expansion of its new business model partnerships, which provide long-term demand visibility. The company noted that its current contract pipeline exceeds available supply through the end of the decade, with customer signals extending past 2030. Approximately 50% of fiscal 2027 bits are already under contract.

Alongside the earnings report, management announced an 8-for-1 stock split, with distribution scheduled for November 19 and split-adjusted trading expected to begin the following day. For the upcoming fiscal second quarter, SanDisk issued strong guidance, projecting revenue between $12.2 billion and $12.6 billion and non-GAAP earnings per share of $55 to $57.

The record financial figures arrive amid wider market attention on memory chip makers and semiconductor valuations. While memory stocks recently experienced short-term pullbacks following earnings reports from competitors like Samsung, SanDisk's robust guidance and continued AI infrastructure demand underscore strong fundamental momentum across the sector.