Sandisk, which gained independence from Western Digital in late winter 2025, has released its report for the first quarter of fiscal 2027, which ended in calendar year 2026. The results were so impressive that the company's press release simply omitted the profit growth percentage values because they were so 'dizzying'. Sandisk's year-over-year revenue grew by 378% to reach $11 billion, and the profit margin increased by 55.2 percentage points, bringing the figure to at least 85% depending on the calculation methodology. GAAP operating profit jumped nearly 50 times to $8.78 billion, while net income skyrocketed more than 72 times to $8.1 billion. On a Non-GAAP basis, operating profit grew more than 36 times to $8.87 billion, and net income grew more than 42 times to $7.62 billion. All key metrics—revenue, earnings per share, and profit margin—exceeded investor expectations.
Server Segment as the Main Growth Driver
The central factor determining Sandisk's stellar dynamics was the artificial intelligence boom, which is driving up both prices and demand for NAND flash memory. Server revenue grew 17.9 times year-over-year to $4.8 billion. This means the server segment accounted for 43.5% of the company's total revenue for the reporting quarter. Sequentially (quarter-over-quarter), server revenue also added 61%, outpacing market-wide forecasts. According to Sandisk's estimates, while at the beginning of the decade the data center segment consumed only about 20% of all NAND in capacity terms, today that share has grown to approximately half. In the next calendar year, the company forecasts that the data center sector will account for over 55% of the NAND market capacity.
Edge Computing and Consumer Segment
The edge computing segment, which includes smartphones, PCs, tablets, automotive electronics, and 'physical AI' (robotics), accounted to 52.9% of Sandisk's revenue. Year-over-year, this segment increased its specialized revenue by 320% to $5.83 billion. The company notes that the role of the automotive sector is strengthening with a long-term perspective and will eventually become a critical source of revenue in edge computing. Conversely, the consumer segment, which accounted for only 3.6% of revenue, shrank by 39% to $397 million. Thus, Sandisk's business structure has shifted toward enterprise and server solutions, which is natural amid the AI boom.
Current Quarter Outlook and Stock Plans
For the current (second) quarter of fiscal 2027, Sandisk forecasts revenue between $12.2 and $12.6 billion, a profit margin of 84.4–85.4% under GAAP (or 84.5–85.5% under Non-GAAP), and operating expenses not exceeding $745 million even in the upper scenario. To improve retail stock accessibility, the company scheduled an 8-for-1 stock split for November 19, 2026, with trading on a split-adjusted basis beginning November 20. NAND demand in capacity terms is estimated by Sandisk to grow by roughly 40% next calendar year, following a more than doubling in 2026. High demand for NAND memory is expected to persist beyond fiscal 2030.
Context: AI Boom and the NAND Market
Sandisk's results fit into a broader picture where the artificial intelligence boom is having a multiplicative effect across the entire semiconductor and memory supply chain. The NAND market as a whole, according to the company, will be 'strong' next calendar year. Sandisk was forced to increase shipments in the server sector during the reporting quarter, indicating capacity constraints and high utilization rates of production lines. For a company that only recently gained independence from Western Digital, such figures confirm the correctness of the strategic spin-off decision while opening up massive opportunities for further growth amid steady demand from data centers and edge devices.
