SanDisk beats quarterly estimates, lifts guidance and announces 8-for-1 split

what happened

According to GuruFocus, SanDisk Corp. (SNDK) beat fiscal first-quarter forecasts as demand from data centers grew and memory prices stayed firm. Revenue reached $11.03 billion, up 23% from the previous quarter and above the $10.7 billion analysts expected. Non-GAAP diluted earnings came to $49.51 per share versus a $47.15 projection, and the non-GAAP gross margin rose to 85.1%.

Data-center sales jumped 61% sequentially to $4.80 billion, as customers deployed high-density flash storage for AI workloads. Edge revenue rose 7% to $5.83 billion, while consumer sales fell 29% to $397 million. For the fiscal second quarter the company guided to $12.2 to $12.6 billion in revenue and $55 to $57 in non-GAAP EPS before the split.

The company repurchased about $5 billion of its stock during the quarter and approved an 8-for-1 forward split, effective after the market closes on Nov. 19. Despite the beat, the shares declined after rising almost 550% over the past year.

why it matters

The results show how strongly AI-driven storage demand is lifting the profits of memory makers. The key question for investors is whether high prices can hold as more memory capacity comes online.

market impact

SNDK: strong beat and raised guidance, but the stock fell after a huge multi-month rally

• ↔SanDisk shares mixed — strong results and guidance support the stock, but after a 550% rally the valuation is already high
• ▲NAND flash prices pressure up — favorable pricing and AI storage demand support memory prices

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instruments