SanDisk’s Q1 Revenue Surges 378% Year on Year to $11 Billion, Data Center Revenue Soars Nearly Seventeenfold!

SanDisk reported its financial results for the first quarter of fiscal 2027 after the US market closed on Thursday. Supported by surging demand for NAND flash driven by AI infrastructure development and higher product pr

ices, the company’s quarterly revenue rose 378% year on year, while data center revenue soared nearly seventeenfold. The company expects revenue to increase further next quarter and announced an eight-for-one stock split.

For the first fiscal quarter ended October 2, 2026, SanDisk reported revenue of $11.031 billion, up 378% from $2.308 billion a year earlier and 23% from $8.965 billion in the previous quarter. Its first-quarter non-GAAP gross margin reached 85.1%, rising sharply by 55.2 percentage points from 29.9% a year earlier and increasing by 0.5 percentage points from 84.6% in the previous quarter. Notably, SanDisk said approximately 60% of its sequential revenue growth came from higher product shipment volumes, with the remaining 40% attributable to higher product prices, showing that strong demand and price increases jointly drove its performance.

By end market, data centers became SanDisk’s fastest-growing business segment. First-quarter data center revenue reached $4.8 billion, up 61% from the previous quarter and a substantial 1,682% year on year, outpacing the company’s estimate for overall market growth during the quarter.

As AI infrastructure continues to expand, data center demand for high-performance enterprise solid-state drives and high-capacity storage platforms is growing rapidly. SanDisk allocated more product supply to the data center market in the first fiscal quarter to meet rising customer demand. The company noted that customer relationships, including partnerships with three US hyperscale cloud service providers, supported the continued expansion of its data center business.

According to SanDisk’s internal market model, data centers’ share of total NAND industry bit demand has risen from approximately 20% in the early years of this century to around 50% today. Looking ahead, the company expects data centers to account for more than 55% of total NAND market demand in 2027. After more than doubling in 2026, data center bit demand is projected to grow by approximately another 40% year on year in 2027.

Market Insight:

SanDisk noted that customer demand signals now extend beyond fiscal 2030, while recent discussions with leading AI companies also indicate room for further demand growth. Notably, SanDisk said demand represented by its pipeline of long-term agreements already exceeds its supply capacity through the end of this decade.