SanDisk reports $11 billion in revenue and commits to full excess cash return
SanDisk posted $11.03 billion in first-quarter revenue, marking a 378% year-over-year increase, while pledging to return all excess cash to shareholders.
SanDisk reported $11.03 billion in revenue for the first quarter of fiscal 2027, ending October 2, representing a 378% increase compared to the same period last year. The company recorded an adjusted non-GAAP gross margin of 85.1% and generated $5.7 billion in adjusted free cash flow during the quarter.
Management attributed 60% of the revenue growth to increased sales volume, with price increases accounting for the remaining 40%. Following the financial results, the company announced a capital allocation strategy to return 100% of excess cash to shareholders, having already utilized $5 billion for stock repurchases during the first quarter.
CEO David Goeckeler highlighted the shift in data center infrastructure requirements, noting that data centers now account for nearly half of total industry volume. The company projects this share to exceed 55% by 2027, driven by a 40% year-over-year increase in bidding demand.
Looking forward, SanDisk reported strong order visibility through 2030, with roughly 50% of its fiscal 2027 production capacity already committed to new business module projects. The company forecasts revenue for the second quarter to fall between $12.2 billion and $12.6 billion.