TLDR
- Sandisk (SNDK) posted fiscal Q1 adjusted EPS of $49.51 on $11.03 billion in revenue, beating Wall Street estimates.
- The stock fell about 5% on Thursday and was down another 4.5% to $1,270.01 in premarket trading Friday.
- The board approved an 8-for-1 stock split, with split-adjusted trading set to begin Nov. 30.
- Data center revenue jumped 1,682% to $4.8 billion, but Edge and Consumer revenue missed expectations.
- BofA cut its price target to $2,000 from $2,500 and kept a Buy rating.
Sandisk (SNDK) stock was trading at $1,270.01 in premarket action on Friday, down 4.5%. The stock closed Thursday’s regular session down 5.3%, even after the company beat Wall Street expectations on both revenue and profit.
The company reported adjusted earnings of $49.51 a share on revenue of $11.03 billion for its fiscal first quarter. Analysts had expected $46.67 a share on $10.7 billion. Revenue rose 378% from a year ago.
Adjusted gross margin came in at 85.1%, up from 29.9% a year earlier. Analysts were looking for 84%. Adjusted free cash flow reached $5.7 billion.
SANDISK $SNDK Q1’27 EARNINGS HIGHLIGHTS
🔹 Revenue: $11.03B (Est. $10.64B) 🟢; +378% YoY, +23% QoQ
🔹 Adj. EPS: $49.51 (Est. $46.22) 🟢; +26% QoQ
🔹 Adj. Gross Margin: 85.1% (Est. 84.1%) 🟢; +55.2 ppts YoY
🔹 Adj. Oper Income: $8.87B (Est. $8.44B) 🟢; +25% QoQQ2 FY27 Guide:
🔹… pic.twitter.com/aXEPCTGmvw— Wall St Engine (@wallstengine) October 29, 2026
Sandisk also gave its board’s approval for an 8-for-1 stock split. Additional shares are expected to be distributed Nov. 19. Split-adjusted trading begins Nov. 30.
Data center strength, weak spots elsewhere
Data center revenue was the star of the report. It rose 1,682% from a year ago to $4.8 billion, well above the $3.98 billion analysts projected. Compared with the prior quarter, it grew 61%.
Edge revenue rose 320% to $5.8 billion. That still missed the $6.07 billion Wall Street had penciled in. Edge covers flash memory for smartphones, PCs, automotive, tablets and physical AI uses.
Consumer revenue fell 39% to $397 million. Analysts had expected $590 million. So the headline beat hid a couple of soft spots, and the market noticed.
Sandisk said its confidence rests on technology leadership, deep consumer partnerships and disciplined financial management. It also sees AI-driven demand for NAND memory lasting beyond fiscal 2030.
Total revenue grew 23% from the prior quarter. BofA noted that roughly 60% of that growth came from volume and 40% from pricing.
Guidance and analyst reaction
For the fiscal second quarter ending in December, Sandisk expects revenue of $12.2 billion to $12.6 billion. It guided adjusted earnings of $55.00 to $57.00 a share.
Wall Street was looking for $12.31 billion in revenue and $53.60 a share. The gross margin outlook of 84.4% to 85.4% also tops the 84% analysts expected.
Analysts expect second-quarter data center revenue of $4.99 billion, Edge revenue of $6.35 billion and consumer revenue of $613 million. Those are the numbers the next report will be measured against.
BofA Securities lowered its price target to $2,000 from $2,500 and kept its Buy rating. The firm said it cut the target multiple to reflect late-cycle valuation concerns. It still cited AI inference making NAND more important.
Rivals also traded lower in premarket action Friday. Micron fell 3.8%, Western Digital dropped 5.8% and Seagate slid 5.1%.
The stock is up 460% this year through Thursday’s close and 579% over the past 12 months. Next up is the stock split, with extra shares due Nov. 19 and split-adjusted trading starting Nov. 30.
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