Sandisk Corporation ($SNDK) reported an impressive fiscal first-quarter 2027 performance, with a Non-GAAP EPS of $49.51, beating estimates by $3.10, and revenue reaching $11.03 billion, surpassing expectations by $330 million. Despite this strong showing, shares dipped about 4% in after-hours trading. The company anticipates second-quarter revenue between $12.2 billion and $12.6 billion, with EPS guidance above consensus, signaling continued momentum.
A key driver behind Sandisk’s growth is its expanding data center business, fueled by rising demand for AI infrastructure. Data center revenues soared 103% sequentially to $2.98 billion in Q4 fiscal 2026 and surged 437% year-over-year to $5.15 billion for the full fiscal year, now representing 38% of Sandisk’s bit portfolio, up from 12% a year ago. The launch of its QLC Stargate platform and development of High Bandwidth Flash technology position Sandisk well to meet the growing storage needs of AI workloads. Long-term contracts with major customers, covering over half of its bits for fiscal 2027 and two-thirds for 2028, provide strong visibility into future demand.
Sandisk faces stiff competition from peers like Micron Technology ($MU) and SK hynix ($SKHY), both benefiting from the AI-driven memory and storage boom. Still, Sandisk’s focus on enterprise SSDs and strategic partnerships underpin its growth outlook. Additionally, its Edge segment, which includes storage for premium smartphones and AI-enabled devices, also showed robust gains, with revenues up 48% sequentially in Q4 fiscal 2026.
Sandisk’s stock also rallied alongside other AI data center suppliers following Oracle’s recent investor day, which reassured markets about AI spending sustainability. Shares of Sandisk rose between 8% and 13% in after-hours trading on October 28, reflecting optimism about the company’s role in powering AI infrastructure.
Overall, Sandisk’s strong earnings, rapid data center expansion, and strategic customer agreements highlight its growing importance in the AI storage market as it navigates a competitive landscape.
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