Sandisk revenue soars on AI demand, sets 8-for-1 split

Sandisk ↘ 13.47% reported fiscal first-quarter revenue of $11.03 billion on Thursday, October 29, up 378% from a year earlier. GAAP net income was $8.1 billion, or $52.60 a diluted share, and adjusted earnings were $49.51 a share, according to the company's earnings release. The memory maker also forecast more growth and announced an eight-for-one forward stock split. The quarter ended October 2.businesswire.com+1

A year earlier, net profit was $112 million, or 75 cents a share, The Wall Street Journal News Corp ↘ 1.37% reported. The paper said rising memory demand tied to AI drove the jump. Bloomberg said the data center buildout lifted demand while a supply crunch kept memory prices high.wsj.com+1

Data Center Growth and Outlook

Data center revenue reached $4.8 billion, up 61% from the prior quarter and up from $269 million a year earlier. GAAP gross margin was 85%, Sandisk said. Analysts polled by FactSet had expected adjusted earnings of $46.67 a share on sales of $10.72 billion, Investor's Business Daily reported. During the quarter, the company spent $5 billion to buy back about 3.2 million shares, and adjusted free cash flow came to $5.7 billion, according to its 8-K filing.stocktitan.net+2

For the fiscal second quarter, Sandisk expects revenue of $12.2 billion to $12.6 billion and pre-split adjusted earnings of $55 to $57 a share. The release also guided to adjusted gross margins of 84.5% to 85.5%. Bloomberg put the analyst consensus for revenue at $12.1 billion.businesswire.com+1

"We have started fiscal year 2027 with another quarter of strong performance, with robust and growing demand for our products driving outpaced growth in our data center business," Chief Executive David Goeckeler said.businesswire.com

Split Details and Stock Reaction

Stockholders of record at the close of business on November 9 will get seven additional shares for each share they hold. The new shares will be issued after the market closes on Thursday, November 19, and split-adjusted trading is expected to start Friday, November 20, according to the SEC filing. The company said the split is meant to make the stock more accessible, including to employees through its stock purchase plan.investors.com+1

Barron's said the shares zigzagged in afternoon trading even though the results were well ahead of expectations, a sign investors may have wanted more. The stock fell about 5% in the regular session before the report, The Wall Street Journal reported. After hours, reports differed. Seeking Alpha said the shares erased early losses to trade higher, while Investing.com described the extended session as choppy.barrons.com+3

The shares had gained more than 450% so far in 2026, making Sandisk one of the best performers in the S&P 500 ↘ 1.77% this year, behind only Moderna ↘ 0.47%, according to MarketWatch.morningstar.com