Sandisk Revenue Soars to $11.03B and Adjusted EPS Hits $49.51 as AI Demand Lifts Pricing Power

Sandisk (SNDK) reported fiscal first-quarter revenue of $11.03 billion, up from $2.31 billion a year earlier and above the $10.72 billion analysts expected, as AI data center demand and constrained memory supply drove storage prices sharply higher. Adjusted EPS reached $49.51 against an estimate of $46.67. GAAP net income jumped to $8.1 billion from $112 million, with GAAP EPS of $52.60 versus $0.75 a year ago. For the second quarter, Sandisk guided revenue of $12.2 billion to $12.6 billion and adjusted EPS of $55 to $57, both above consensus at the midpoint.

Results against expectations

Revenue was up about 377% from a year earlier and about 23% from the $8.97 billion of the fiscal fourth quarter, in line with the 23% sequential growth Sandisk reports. The Q2 midpoint of $12.4 billion implies roughly 12% sequential growth, and GAAP net income equals about 73% of revenue, by our calculation. Revenue and adjusted EPS both topped the top end of Sandisk's own guidance ($10.8 billion and $46).

Pricing power is the story

Hyperscalers are paying elevated prices for data storage while limited manufacturing capacity strengthens suppliers' negotiating leverage and profitability. In the prior quarter, Sandisk said about two-thirds of sequential revenue growth came from higher pricing and one-third from volume, and gross margin reached 84.6%. Data center revenue was $2.98 billion in that quarter, about a third of the total, and management has indicated supply will stay tight beyond 2027.

A stock that had already pulled back

Expectations were demanding. Sandisk shares closed at a record of about $2,335 on June 25 and traded near $1,300 ahead of the report, well below that peak, as investors weighed whether the memory boom might slow. In August the stock fell after management guided only to modest price increases. The Q2 outlook, which sits above consensus at the midpoint, speaks to that concern because it implies prices and demand are still rising.

What it means

Sandisk's results show how much a supply squeeze can reshape the economics of a commodity-like business: revenue is nearly five times last year's level and quarterly profit is in the billions. The same shortage that lifts storage makers is raising costs for PC and device makers, as shown in our Intel earnings article. The risk is that pricing is cyclical, so the durability of supply limits will decide how long these margins last.

Sources: Sandisk fiscal first quarter 2027 financial results (Oct. 29, 2026) and fiscal fourth quarter 2026 results on Sandisk investor relations; analyst estimates are from market data. This is informational, not a recommendation to buy or sell.