SanDisk's Q1 2027 fiscal year revenue exceeds expectations at $11.03 billion

SanDisk (SNDK.US) reported revenue of $11.03 billion for Q1 of fiscal year 2027, surpassing market expectations of $10.68 billion; adjusted earnings per share were $49.51, compared to the market expectation of $46.27. Data center business revenue reached $4.8 billion, up 61% quarter-on-quarter, mainly driven by strong enterprise SSD demand fueled by AI infrastructure construction. The company stated that product demand is strong and continues to grow, with the growth rate of the data center business further accelerating. Tight supply of storage products allowed the company to significantly raise prices, with Q1 adjusted gross margin reaching 85.1%, up from 84.6% in the previous quarter. The company expects Q2 fiscal year 2027 revenue to be between $12.2 billion and $12.6 billion, with market expectations around $12.3 billion, and adjusted gross margin anticipated to be between 84.5% and 85.5%. SanDisk's share price has risen over 450% so far this year, and the company will implement a 1-for-8 stock split on November 19.