378% Year-on-Year Q1 Revenue Growth: SanDisk Records $11 Billion as Data Centre Revenue Expands Nearly Seventeenfold!

SanDisk’s quarterly revenue increased 378% year on year. The company released its first-quarter fiscal 2027 results on Thursday after the US market close, with performance supported by AI infrastructure development driving a surge in NAND flash demand and by higher product pr

ices. Revenue from data centres surged nearly seventeenfold. SanDisk expects another revenue increase next quarter and announced an eight-for-one stock split.

For the quarter ended 2 October 2026, SanDisk generated $11.031 billion in revenue. This was 378% above the year-earlier $2.308 billion and 23% higher than the previous quarter’s $8.965 billion. First-quarter non-GAAP gross margin expanded to 85.1%, a sharp gain of 55.2 percentage points against 29.9% a year earlier. Compared with the preceding quarter’s 84.6%, the increase was 0.5 percentage points. Breaking down sequential revenue growth, SanDisk attributed approximately 60% to higher product shipment volumes and the remaining 40% to increased product prices. Both strong demand and price gains therefore contributed to the results.

With first-quarter revenue reaching $4.8 billion, data centres ranked as SanDisk’s fastest-growing end-market segment. Growth of 61% over the preceding quarter and 1,682% year on year exceeded the company’s estimate for the overall market’s expansion during the quarter.

Rapidly rising demand from data centres for high-performance enterprise solid-state drives and high-capacity storage platforms reflects the continuing expansion of AI infrastructure. Meeting greater customer demand required SanDisk to allocate more product supply to this market in the first fiscal quarter. Relationships with customers helped underpin the data centre business’s continued growth, SanDisk noted. These include partnerships with three US hyperscale cloud service providers.

Around 50% of total NAND industry bit demand now comes from data centres, against approximately 20% in the early years of this century, based on SanDisk’s internal market model. The company expects the proportion of total NAND market demand attributable to data centres to rise above 55% in 2027. Having more than doubled in 2026, data centre bit demand is projected to increase by approximately another 40% year on year in 2027.

2030 and Beyond: Market Insight:

Visibility from customer demand signals now reaches beyond fiscal 2030, SanDisk said. Discussions held recently with leading AI companies also point to potential for demand to expand further. SanDisk stressed that, through the end of this decade, demand reflected in its pipeline of long-term agreements already outstrips its supply capacity.