Sandisk sales jump 378% to $11 billion as data centers drive the next leg of growth

Sandisk's quarterly sales grew to nearly five times their year-earlier level, but the most useful detail is where the latest increase came from: data centers, rather than consumer storage.

The company reported fiscal first-quarter revenue of $11.031 billion in its October 29 earnings release, up 378% from $2.308 billion a year earlier. Revenue also increased 23% from the immediately preceding quarter. Sandisk's fiscal first quarter ended October 2; it is not the calendar third quarter used by many other technology companies.

Data-center revenue reached $4.802 billion, compared with $2.977 billion in the previous quarter. Edge revenue rose to $5.832 billion from $5.432 billion, while consumer revenue fell to $397 million from $556 million. The three businesses did not participate equally in the growth.

Data centers supplied 88% of the increase

The arithmetic adds perspective to the headline. Total revenue increased by $2.066 billion sequentially. Data centers supplied $1.825 billion of that increase, or approximately 88%. Edge added $400 million, while consumer sales subtracted $159 million. The net of those changes matches the reported total increase.

That is why it would be misleading to describe these results simply as a broad rebound in storage shopping. Consumer sales actually declined. The improvement was concentrated in the larger business markets, with the biggest incremental contribution coming from data centers.

Data centers represented about 43.5% of quarterly revenue, calculated from Sandisk's reported segment and total figures. Consumer sales represented about 3.6%. Those proportions describe the quarter just reported; they do not guarantee the same mix or growth rate in future periods.

The outlook implies another increase

For fiscal second-quarter revenue, Sandisk forecast $12.2 billion to $12.6 billion. The $12.4 billion midpoint would be about 12.4% above the first-quarter result. That would be further sequential growth, but a slower percentage increase than the 23% just reported. Guidance is management's forecast, not booked revenue.

For customers and suppliers, the distinction matters. A quarter's revenue table shows where spending reached the company. It does not establish an individual buyer's component price, identify a shortage at a particular distributor, or tell a business to accelerate a purchase. Those questions still require current supplier information.

What the eight-for-one split actually changes

Sandisk also announced an eight-for-one forward stock split. Holders of record at the close on November 9 are to receive seven additional shares for every share held, issued after the close on November 19. Split-adjusted trading is expected to begin November 20.

One share becoming eight does not itself increase an investor's ownership percentage or the company's total market value. The economic comparison is the same investment divided into more units. Per-share figures in the earnings release are presented before the split, so they should not be compared directly with future split-adjusted figures without conversion.

The operating story remains the revenue mix and the next quarter's execution. A split changes the units used to discuss the stock. It does not change how much storage the company sells or which customers generated the growth.

Source: Sandisk's fiscal first-quarter 2027 results and stock-split announcement. Contribution and midpoint comparisons are The Company Chronicle's calculations. This is market information, not investment advice.