Sandisk earnings: first quarter of fiscal 2027

Sandisk's first quarter of fiscal 2027 was another big step up. Sales were $11.0 billion, 23% more than in the previous quarter and nearly five times a year ago, as sales for data centres rose 61% in three months. Almost all of the extra money reached profit: 85 cents of each dollar of sales was left after the cost of making the products, and earnings per share were $52.60, or $49.51 leaving out a gain on shares it holds in other companies. Free cash flow was $6.3 billion, though the bills customers had yet to pay grew by $1.9 billion. Sandisk expects sales of $12.2 billion to $12.6 billion next quarter, and will split its shares eight for one in November. ¹

Against what analysts expected

Earnings per share were $52.60, or $49.51 on the company's own adjusted figure, which leaves out a gain on shares it holds in other companies; both are above the $46.19 analysts expected on average (Nasdaq's earnings calendar), the adjusted figure by about 7%. ¹²

The strong points

• Sales were $11.0 billion, nearly five times what they were a year ago. ¹
• Gross margin, what is left of each dollar of sales after the direct cost of making what was sold, reached 85%, up from under 30% a year ago. ¹
• Free cash flow, the cash left after running the business and investing in it, was $6.3 billion in the quarter. ¹

The weak points

• Money that customers owe Sandisk jumped by $1.9 billion in three months, holding back cash until they pay. ¹
• Sales to ordinary consumers fell 39% from a year ago, even as the rest of the business boomed. ¹

What the company expects

• Sandisk expects sales of $12.2 billion to $12.6 billion next quarter, more than the quarter just reported. ¹
• It expects adjusted earnings per share of $55 to $57 next quarter, above this quarter's figure, counted before its planned share split. ¹

Our verdict on the quarter

A very strong report. Sales nearly quintupled, almost all of the extra money reached profit and cash, the result came in above what analysts expected on both measures, and the company expects another bigger quarter, with only a build-up of unpaid customer bills as a small soft spot.

The results as published

• The results release itself
• The filing it came with (SEC)

Notes

1. Sandisk's results release, 29 October 2026: sec.gov. ↩
2. Nasdaq's earnings calendar, 29 October 2026. ↩