[News] SanDisk 1QFY27: $11B Revenue Nearly Quintuples, 85.1% Gross Margin; Long-Term Customers Weigh Extensions

Fueled by booming AI data center demand, SanDisk delivered blowout quarterly results, with September-quarter revenue surging 378% YoY to $11 billion, beating the $10.7 billion FactSet consensus. The NAND giant also forecast December-quarter sales of $12.2 billion–$12.6 billion, above analysts’ $12.3 billion estimate at the midpoint, according to Morningstar.

Profitability was equally striking. Adjusted EPS soared 6,913% to $52.60, topping expectations of $46.67, while non-GAAP gross margin edged up to 85.1% from 84.6% in June, Morningstar reports. SanDisk expects the margin to remain elevated at 84.5%–85.5% in the December quarter.

According to BigGoFinance, management attributed roughly 60% of revenue growth to higher shipment volumes and the remaining 40% to price increases. Data centers emerged as the quarter’s key growth driver, with revenue jumping 61% QoQ to $4.8 billion, the report notes.

Management, cited by the report, projects that the segment’s share of industry-wide NAND bit demand has climbed from roughly 20% a decade ago to nearly 50% today, with that figure projected to top 55% in 2027.

Meanwhile, SanDisk announced an 8-for-1 stock split, with November 9 set as the record date. The split will take effect after market close on November 19, with shares beginning to trade on a split-adjusted basis on November 20. The move aims to make the stock more accessible to investors and facilitate trading.

NBM Customers Explore Contract Extension; HBF Progress in Focus

Chairman and CEO David Goeckeler, cited by the report, also highlighted unprecedented long-term visibility, noting that customer demand signals under its New Business Model (NBM) now stretch beyond fiscal 2030.

According to a transcript from Yahoo! Finance, CFO Luis Visoso highlighted growing interest in longer-term supply commitments, with existing NBM customers exploring contract extensions and prospective partners evaluating new agreements.

According to SanDisk’s press release in August, it has signed NBMs with eight customers, representing approximately 50 percent of bits in FY2027 and approximately two-thirds of bits in FY2028.

Meanwhile, SanDisk is advancing its High Bandwidth Flash (HBF) technology, announcing that its first chip has completed tape-out and entered manufacturing, with customer samples expected in 2027, Morningstar reports.

Designed for AI inference, HBF aims to deliver HBM-like read bandwidth with greater capacity. According to CEO David Goeckeler, its HBF reached an important milestone in the fiscal first quarter with the tapeout of the first HBF memory die, with fabrication now underway.

Read more

• [News] Sandisk Reportedly Tapes Out First HBF Product, Targets 2027 Samples and 2028 Production
• [News] SK hynix, SanDisk Debut HBF Standard to Challenge AI Memory Bottlenecks with Google, Tenstorrent Support

(Photo credit: SanDisk)