IT News on October 30: The construction of data centers has driven an increase in storage demand. Coupled with the tight supply and high prices of storage chips, Sandisk's latest financial results and performance forecasts have exceeded market expectations.

Sandisk expects that in the second fiscal quarter of the 2027 fiscal year (from July 2026 to June 2027), revenue will reach $12.2 billion to $12.6 billion (Note from IT: At current exchange rates, this is approximately 81.503 billion to 84.175 billion yuan), which is higher than analysts' forecast of $12.1 billion (at current exchange rates, approximately 80.835 billion yuan).

It is reported that Sandisk's revenue in the first fiscal quarter, adjusted earnings per share, and adjusted gross margin all exceeded expectations.

Sandisk remains confident about the long-term prospects, believing that the demand for flash memory driven by AI will continue to grow, with customer demand signals extending even beyond the fiscal year 2030. Large-scale investments in the AI sector have also made storage chip stocks a focal point of attention for investors.

Sandisk reported operating cash flow of $6.4 billion (approximately 42.755 billion RMB at current exchange rates) in the first fiscal quarter of fiscal year 2027, which fell short of analysts' expectations of $6.7 billion (approximately 44.76 billion RMB at current exchange rates).

The specific data is as follows:

• In the first fiscal quarter of fiscal year 2027, revenue amounted to 11 billion US dollars (approximately 73.486 billion RMB at current exchange rates), representing a quarter-on-quarter increase of 23%; net profit calculated in accordance with Generally Accepted Accounting Principles (GAAP) was 8.1 billion US dollars (about 54.112 billion RMB at current exchange rates), resulting in an diluted earnings per share of 52.60 US dollars (approximately 351.4 RMB at current exchange rates), a quarter-on-quarter increase of 20%; after adjustments, the diluted earnings per share were 49.51 US dollars (about 330.8 RMB at current exchange rates).
• In the first fiscal quarter, approximately 3.2 million shares were repurchased, returning $5 billion (about 33.403 billion yuan at current exchange rates) to shareholders. Over the past two fiscal quarters, a total of 6 million shares have been repurchased, accounting for about 4% of the total number of outstanding shares.
• Sandisk announces the implementation of a 1-for-8 stock split plan, which will take effect on November 19, 2026, in order to lower the threshold for purchasing stocks and make it easier for more investors, including those who buy shares through the employee stock purchase plan, to make purchases.
• Sandisk expects revenue for the second fiscal quarter of 2027 to be between $12.2 billion and $12.6 billion (approximately 81.503 billion to 84.175 billion yuan at current exchange rates). Calculated on a pre-split basis, the adjusted diluted earnings per share are expected to be between $55 and $57 (approximately 367.4 to 380.8 yuan at current exchange rates).