We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SNDK Q1 Earnings Call Highlights AI Demand and Supply Discipline
Read MoreHide Full Article
Key Takeaways
Sandisk's Q1 revenues surged 378% Y/Y to $11.03 billion, with datacenter sales up 61% sequentially.
SNDK has secured NBM coverage for 50% of fiscal 2027 bits and two-thirds of fiscal 2028 bits.
Sandisk projects Q2 revenues of $12.2???$12.6B and EPS of $55-$57 before its announced eight-for-one split.
Sandisk Corporation (SNDK - Free Report) emphasized expanding AI-driven NAND demand, long-term customer commitments and disciplined supply management during its first-quarter fiscal 2027 earnings call.
Management highlighted strengthening datacenter demand and growing visibility through new business model (NBM) agreements. The company also outlined its technology roadmap, capital allocation priorities and expectations for sustained growth.
SNDK Earnings Beat Estimates as Datacenter Sales Surge
Sandisk reported non-GAAP earnings of $49.51 per share, beating the Zacks Consensus Estimate of $47. Revenues reached $11.03 billion, exceeding the Zacks Consensus Estimate of $10.69 billion. Revenues surged 378% year over year and increased 23% sequentially.
Sandisk Corporation Price, Consensus and EPS Surprise
Datacenter revenues climbed 61% sequentially to $4.8 billion, supported by growing demand from hyperscalers and AI infrastructure customers.
Chief financial officer Luis Visoso attributed approximately 60% of sequential revenue growth to higher volumes and 40% to improved pricing. Non-GAAP gross margin reached 85.1%, reflecting both factors.
Sandisk Sees Stronger Demand Visibility Through NBMs
Chief executive officer David Goeckeler emphasized that long-term customer agreements are becoming central to Sandisk's business model. Management indicated that customer demand commitments extend beyond fiscal 2030.
During questioning from Melius Research, Goeckeler confirmed that approximately 50% of fiscal 2027 bits and two-thirds of fiscal 2028 bits are covered by NBMs.
Visoso added that 95% of existing NBMs involve investment-grade customers. Management expects additional agreements but intends to remain selective when allocating available supply.
SNDK Projects Further Growth in Fiscal Q2
For the second quarter of fiscal 2027, Sandisk expects revenues between $12.2 billion and $12.6 billion, with non-GAAP gross margin ranging from 84.5% to 85.5%.
Management projects non-GAAP earnings between $55 and $57 per share before the announced eight-for-one stock split. The corresponding split-adjusted guidance is $6.88 to $7.13 per share.
Visoso expects modest pricing increases to continue. Management also anticipates approximately 40% year-over-year datacenter bit-demand growth in calendar 2027, driven by AI infrastructure investment.
Sandisk Expands Its AI Storage Technology Roadmap
Goeckeler identified BiCS 8 technology and expanding enterprise SSD adoption as important contributors to datacenter growth. The company is also developing BiCS 9 and BiCS 10 to address evolving performance requirements.
High-bandwidth flash achieved its first memory-die tape-out during the quarter. Management expects initial product samples in calendar 2027, targeting AI inference applications requiring greater memory capacity.
During discussions with Morgan Stanley and Bernstein analysts, Goeckeler highlighted increasing NAND adoption across inference workloads. He also described emerging customer interest in higher-endurance SLC applications, although commercialization remains at an early stage.
SNDK Maintains Supply and Capital Allocation Discipline
Despite strong demand, management maintained its mid-to-high-teens bit-supply growth framework. Responding to MST Financial, Goeckeler explained that manufacturing transitions require extensive planning and cannot be accelerated immediately.
Edge revenues increased 7% sequentially to $5.8 billion, while consumer revenues declined 29% to $397 million. Management expects higher storage content per device to support PC and smartphone bit-demand growth despite softer unit shipments.
Visoso reported adjusted free cash flow of $5.7 billion. Sandisk repurchased $5 billion of shares during the quarter and reiterated its commitment to returning excess cash to shareholders while maintaining a debt-free balance sheet.
Sandisk Reinforces Its Long-Term Operating Priorities
Management maintained a confident outlook on AI-driven storage demand while emphasizing selectivity in customer agreements, manufacturing investments and product allocation.
Goeckeler reiterated the importance of technology leadership, customer relationships and financial discipline. The company's priorities remain expanding datacenter participation, generating durable cash flow and executing its long-term financial framework.
What Zacks Rank and Style Scores Indicate for SNDK
Sandisk currently carries a Zacks Rank #2 (Buy), indicating favorable near-term earnings estimate revision trends. Its Growth and Momentum Scores of A highlight attractive characteristics in both categories, while its Value Score of C reflects a comparatively moderate valuation profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock's VGM Score of A indicates a favorable combination of value, growth and momentum characteristics. These scores complement the Zacks Rank in evaluating potential performance over the next one to three months. However, the Zacks Rank may change as analysts revise their earnings estimates following the latest quarterly results.
View the Zacks #1 Rank List
Image: Bigstock
SNDK Q1 Earnings Call Highlights AI Demand and Supply Discipline
Key Takeaways
Sandisk Corporation (SNDK - Free Report) emphasized expanding AI-driven NAND demand, long-term customer commitments and disciplined supply management during its first-quarter fiscal 2027 earnings call.
Management highlighted strengthening datacenter demand and growing visibility through new business model (NBM) agreements. The company also outlined its technology roadmap, capital allocation priorities and expectations for sustained growth.
SNDK Earnings Beat Estimates as Datacenter Sales Surge
Sandisk reported non-GAAP earnings of $49.51 per share, beating the Zacks Consensus Estimate of $47. Revenues reached $11.03 billion, exceeding the Zacks Consensus Estimate of $10.69 billion. Revenues surged 378% year over year and increased 23% sequentially.
Sandisk Corporation Price, Consensus and EPS Surprise
Sandisk Corporation price-consensus-eps-surprise-chart | Sandisk Corporation Quote
Datacenter revenues climbed 61% sequentially to $4.8 billion, supported by growing demand from hyperscalers and AI infrastructure customers.
Chief financial officer Luis Visoso attributed approximately 60% of sequential revenue growth to higher volumes and 40% to improved pricing. Non-GAAP gross margin reached 85.1%, reflecting both factors.
Sandisk Sees Stronger Demand Visibility Through NBMs
Chief executive officer David Goeckeler emphasized that long-term customer agreements are becoming central to Sandisk's business model. Management indicated that customer demand commitments extend beyond fiscal 2030.
During questioning from Melius Research, Goeckeler confirmed that approximately 50% of fiscal 2027 bits and two-thirds of fiscal 2028 bits are covered by NBMs.
Visoso added that 95% of existing NBMs involve investment-grade customers. Management expects additional agreements but intends to remain selective when allocating available supply.
SNDK Projects Further Growth in Fiscal Q2
For the second quarter of fiscal 2027, Sandisk expects revenues between $12.2 billion and $12.6 billion, with non-GAAP gross margin ranging from 84.5% to 85.5%.
Management projects non-GAAP earnings between $55 and $57 per share before the announced eight-for-one stock split. The corresponding split-adjusted guidance is $6.88 to $7.13 per share.
Visoso expects modest pricing increases to continue. Management also anticipates approximately 40% year-over-year datacenter bit-demand growth in calendar 2027, driven by AI infrastructure investment.
Sandisk Expands Its AI Storage Technology Roadmap
Goeckeler identified BiCS 8 technology and expanding enterprise SSD adoption as important contributors to datacenter growth. The company is also developing BiCS 9 and BiCS 10 to address evolving performance requirements.
High-bandwidth flash achieved its first memory-die tape-out during the quarter. Management expects initial product samples in calendar 2027, targeting AI inference applications requiring greater memory capacity.
During discussions with Morgan Stanley and Bernstein analysts, Goeckeler highlighted increasing NAND adoption across inference workloads. He also described emerging customer interest in higher-endurance SLC applications, although commercialization remains at an early stage.
SNDK Maintains Supply and Capital Allocation Discipline
Despite strong demand, management maintained its mid-to-high-teens bit-supply growth framework. Responding to MST Financial, Goeckeler explained that manufacturing transitions require extensive planning and cannot be accelerated immediately.
Edge revenues increased 7% sequentially to $5.8 billion, while consumer revenues declined 29% to $397 million. Management expects higher storage content per device to support PC and smartphone bit-demand growth despite softer unit shipments.
Visoso reported adjusted free cash flow of $5.7 billion. Sandisk repurchased $5 billion of shares during the quarter and reiterated its commitment to returning excess cash to shareholders while maintaining a debt-free balance sheet.
Sandisk Reinforces Its Long-Term Operating Priorities
Management maintained a confident outlook on AI-driven storage demand while emphasizing selectivity in customer agreements, manufacturing investments and product allocation.
Goeckeler reiterated the importance of technology leadership, customer relationships and financial discipline. The company's priorities remain expanding datacenter participation, generating durable cash flow and executing its long-term financial framework.
What Zacks Rank and Style Scores Indicate for SNDK
Sandisk currently carries a Zacks Rank #2 (Buy), indicating favorable near-term earnings estimate revision trends. Its Growth and Momentum Scores of A highlight attractive characteristics in both categories, while its Value Score of C reflects a comparatively moderate valuation profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock's VGM Score of A indicates a favorable combination of value, growth and momentum characteristics. These scores complement the Zacks Rank in evaluating potential performance over the next one to three months. However, the Zacks Rank may change as analysts revise their earnings estimates following the latest quarterly results.