SanDisk Posts $11B Quarterly Revenue as NAND Demand Outstrips Customer Forecasts; Long-Term Contracts Extend to 2030

SanDisk (SNDKV) reported fiscal 2027 first-quarter revenue of $11 billion on Thursday, up 378% year-over-year and 23% sequentially, as AI inference demand drove record data center storage orders. Non-GAAP gross margin reached 85.1% and adjusted free cash flow totaled $5.7 billion. Data center revenue hit $4.8 billion, up 61% quarter-over-quarter. Management said roughly 60% of growth came from higher shipments and 40% from pricing. The company guided second-quarter revenue to $12.2 billion-$12.6 billion and pledged to return 100% of free cash flow to shareholders, having repurchased $5 billion in stock during the quarter. CEO David Goeckeler said customers have underestimated the NAND capacity needed to run AI infrastructure, with repeat orders from existing clients and new buyers joining. Data center now accounts for about half of industry NAND demand, versus roughly 20% a decade ago, and is expected to exceed 55% in 2027. Under SanDisk's new business model, about 50% of fiscal 2027 supply is already booked, rising to roughly two-thirds for fiscal 2028, with the order backlog potentially exceeding available capacity through 2030. The company also said its first high-bandwidth flash chip has taped out, with samples due to customers next year.