Sandisk (SNDK) Q1 2027 earnings summary

Executive summary

• Q1 FY27 revenue was $11.031B; non-GAAP gross margin was 85.1% and non-GAAP diluted EPS was $49.51, exceeding guidance.

• AI-driven NAND demand, technology leadership, customer partnerships, and NBM signals extending beyond FY2030 support confidence in long-term growth.

Financial highlights

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

• Non-GAAP operating income was $8.871B, up 25% QoQ; non-GAAP net income was $7.624B, versus GAAP net income of $8.101B.

• Operating cash flow was $6.363B; adjusted free cash flow was $5.696B, excluding $465M of NBM prepayments and deposits.

• Quarter-end cash and cash equivalents were $5.136B; diluted weighted-average shares were 154M.

Outlook and guidance

• Q2 FY27 revenue guidance is $12.2B–$12.6B; non-GAAP gross margin 84.5%–85.5%, operating expenses $540M–$560M, and diluted EPS $55–$57 pre-split.

• Q2 guidance assumes ~151M diluted shares and a 14.3% non-GAAP tax rate; split-adjusted EPS is $6.88–$7.13 on ~1,208M shares.

• Calendar 2027 NAND bit demand is expected to grow ~40% YoY; data center is forecast to exceed 55% of the market.

• Pricing is expected to rise modestly through FY27; fiscal Q3 is typically the weakest sequential quarter, prompting conservative Q2-to-Q3 assumptions.