Sandisk: Fiscal 1Q26 Financial Results

News Summary

First quarter revenue was $2.31 billion, up 21% sequentially and above the guidance range, with GAAP net income reported at $112 million ($0.75 diluted net income per share). First quarter Non-GAAP diluted net income per share was $1.22
Datacenter revenue was up 26% sequentially, with two hyperscalers in qualification, a third hyperscaler and top storage OEM planned for CY26, and engagement with five major hyperscale customers
BiCS8 technology accounted for 15% of total bits shipped; expected to reach majority of bit production exiting fiscal year 2026
Expect second quarter revenue to be in the range of $2.55 billion to $2.65 billion, with expected Non-GAAP diluted net income per share to be in the range of $3.00 to $3.40

Sandisk Corp. reported fiscal first quarter financial results.

“Customers are turning to Sandisk for our leading technology and products, which are exceptionally well positioned at a time when demand is strengthening,” said David Goeckeler, CEO, Sandisk. “Our strong balance sheet and leading portfolio, combined with this phase of renewed growth and profitability, enabled us to achieve our net cash positive milestone ahead of plan and is positioning us to drive meaningful long-term value for our shareholders.”

Q1 2026 Financial Highlights

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End Market Summary

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Business Outlook for Fiscal Second Quarter of 2026

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Basis of Presentation
On February 21, 2025, Sandisk Corporation (the “Company”) completed its separation from Western Digital Corporation (“WDC”) and became a standalone publicly traded company.

The Company’s financial and operating results after the separation are presented on a consolidated basis. For periods prior to the separation, the Company’s historical combined financial statements were prepared on a carve-out basis and were derived from WDC’s consolidated financial statements and accounting records and prepared as if the Company existed on a standalone basis. The financial statements for all periods presented, including the historical results of the Company prior to February 21, 2025, are now referred to as “Consolidated Financial Statements” and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”).

Comments

AI is clearly pushing and creates a positive financial pull for Sandisk. The dynamic is set for a few quarters now and it appears that the strategy generates dividends as all 3 products segments grew double-digit. The last 3 quarters shows a net growth as Q3FY25 was low but served as a new start.

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Like for other players in the Flash/SSD domain, even for HDD, hyperscalers represent a strong dynamic with all data centers popping up in various countries with several large, we mean very large, investments in AI. The pending and current hyperscaler deals should feed the next few quarters. But the majority of Sandisk revenue comes from the Edge, 5 times the Datacenter revenue, both growing sequentially at 26% pace. All 3 Sandisk revenue segments - Datacenter, Edge and Consumer - show similar growth for recent quarters. We even anticipate that the Q2FY26 in datacenter should pass the $300 million threshold.

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