SanDisk Posts $11 Billion in Q1 Revenue, Up 378% Year on Year, as Data Centre Revenue Climbs Nearly Seventeenfold

Quarterly revenue growth of 378% year on year marked SanDisk’s first quarter of fiscal 2027, supported by surging demand for NAND flash as AI infrastructure develops and by higher product pr

ices. Released after the US market closed on Thursday, the results also showed a nearly seventeenfold rise in data centre revenue. Alongside expectations of a further revenue increase next quarter, SanDisk announced an eight-for-one stock split.

Revenue totalled $11.031 billion for the first fiscal quarter ended 2 October 2026, representing a 378% increase on the $2.308 billion recorded a year earlier and a 23% rise from $8.965 billion in the preceding quarter. The non-GAAP gross margin for the first quarter stood at 85.1%. That was a sharp increase of 55.2 percentage points from 29.9% a year earlier and a gain of 0.5 percentage points from the previous quarter’s 84.6%. SanDisk attributed approximately 60% of sequential revenue growth to increased product shipment volumes and the remaining 40% to higher product prices, underscoring the contribution of both strong demand and pricing gains.

Among SanDisk’s end markets, the fastest growth came from data centres, where first-quarter revenue of $4.8 billion represented increases of 61% quarter on quarter and 1,682% year on year. This performance surpassed SanDisk’s estimate for overall market growth during the quarter.

The continuing build-out of AI infrastructure is driving a rapid increase in data centre demand for high-performance enterprise solid-state drives and high-capacity storage platforms. In response to growing customer demand, SanDisk increased the product supply allocated to data centres in the first fiscal quarter. Continued expansion in this business was supported by customer relationships, the company noted, including partnerships with three US hyperscale cloud service providers.

Data centres now represent around 50% of total NAND industry bit demand, up from approximately 20% in the early years of this century, SanDisk’s internal market model indicates. For 2027, the company anticipates that their share of total NAND market demand will exceed 55%. Projections point to approximately another 40% year-on-year increase in data centre bit demand in 2027, following more than a doubling in 2026.

Market Insight: SanDisk’s Long-Term Demand Exceeds Supply Capacity

Signals from customers now give SanDisk visibility of demand beyond fiscal 2030, the company noted. Recent discussions with leading AI companies also suggest potential for demand to grow further. SanDisk highlighted that its pipeline of long-term agreements already represents demand greater than its supply capacity through the end of this decade.