Sandisk (SNDK) Q1 2027 earnings summary

Executive summary

• Fiscal Q1 2027 revenue was $11.031B, up 23% QoQ and 378% YoY; non-GAAP gross margin was 85.1% and non-GAAP diluted EPS was $49.51.

• Adjusted free cash flow was $5.696B, excluding $465M of NBM prepayments and deposits; $5.0B was returned through Q1 repurchases.

• AI-driven NAND demand, data center growth, and NBM customer signals extending beyond FY2030 supported long-term confidence.

Financial highlights

• Non-GAAP operating income was $8.871B, up 25% QoQ; GAAP operating income was $8.780B.

• Non-GAAP net income was $7.624B, up 24% QoQ; GAAP net income was $8.101B, up 17% QoQ.

• Operating cash flow was $6.363B; free cash flow was $6.309B and adjusted free cash flow was $5.696B.

• Revenue rose 23% QoQ and 378% YoY; ~60% of the sequential increase came from volume and ~40% from higher pricing.

Outlook and guidance

• Q2 FY2027 revenue guidance is $12.2B–$12.6B; GAAP gross margin is 84.4%–85.4% and non-GAAP gross margin is 84.5%–85.5%.

• Q2 GAAP operating expenses are guided to $677M–$745M; non-GAAP operating expenses are $540M–$560M.

• Q2 non-GAAP diluted EPS guidance is $55–$57 pre-split, with ~151M diluted shares and a 14.3% non-GAAP tax rate.

• A strong calendar 2027 market is expected; data center is projected to represent over 55% of the market, with bit demand growing ~40% YoY.