IT News from October 30th: Sandisk today released its report for the first fiscal quarter (July 4, 2026, to October 2, 2026) of the 2027 fiscal year (July 4, 2026, to July 1, 2027):

• Total operating revenue: $11.031 billion (Note from IT: The current exchange rate is approximately 73.652 billion RMB), a year-on-year increase of 378% and a month-on-month increase of 23%.
• Gross profit: $9.378 billion (approximately 62.616 billion yuan at current exchange rates), a year-on-year increase of 55.2%
• Gross profit margin: 85%
• Net profit attributable to shareholders of the parent company: $8.101 billion (approximately 54.089 billion yuan at current exchange rates), a year-on-year increase of 17%
• Operating cash flow: $6.363 billion (equivalent to approximately 42.485 billion yuan at current exchange rates)
• Free cash flow: $6.309 billion (equivalent to approximately 42.124 billion RMB at current exchange rates)
• Basic earnings per share: $55.49 (current exchange rate is approximately 370.5 RMB)
• Diluted earnings per share: $52.6 (current exchange rate is approximately 351.2 RMB), a month-on-month increase of 20%
• Asset-liability ratio: 29.69%, down 0.39 percentage points from the previous period.

According to AI, Sandisk's FY2027 first-quarter revenue and Non-GAAP diluted earnings per share both exceeded the consensus forecasts of Wall Street analysts, and the Q2 guidance was also higher than market expectations, with overall performance far exceeding expectations.

SanDisk is a vertically integrated global semiconductor company that focuses on NAND flash memory storage solutions, covering three major market segments: enterprise-level SSD (AI data centers), Edge (mobile phones/PC/automotive/IoT), and consumer storage.

In terms of revenue, this fiscal quarter's revenue reached $11.031 billion, a 23% increase from the previous quarter and a 378% increase year-on-year.

In terms of profitability, GAAP achieved a net profit of 8.101 billion US dollars, a month-on-month increase of 17%; GAAP had a gross margin of 85%, which is a year-on-year increase of 55.2 percentage points and a month-on-month increase of 0.4 percentage points.

In terms of cash flow and shareholder returns, the net cash flow from operating activities for this fiscal quarter was $6.363 billion, with free cash flow amounting to $6.309 billion; approximately $5 billion was returned to shareholders through the repurchase of about 3.2 million shares.

In terms of business structure, data center revenue amounted to $4.802 billion, a significant increase of 61% month-on-month; Edge business revenue was $5.832 billion, with a month-on-month growth of 7%; consumer business revenue was $397 million, showing a month-on-month decline of 29%.

For the outlook, the company expects the revenue range for the second fiscal quarter of FY2027 to be between $12.2 billion and $12.6 billion, the diluted earnings per share (before stock split) range to be between $55 and $57, and the gross margin range to be between 84.5% and 85.5%.

The company also announced a 1-for-8 stock split of forward shares, with completion expected on November 19, 2026, and trading based on the post-split basis to begin on November 20; all per-share figures in this financial report are based on the pre-split ratio.

As of the end of the quarter, total assets amounted to $25.793 billion, total liabilities were $7.659 billion, resulting in a debt-to-asset ratio of approximately 29.7%. There was $5.136 billion in cash and cash equivalents on the balance sheet, indicating a robust financial position with no interest-bearing debt.

Related Reading:

• Wei Gang reported a net profit attributable to the parent company of NT$32.546 billion in the first three quarters of fiscal year 2026
• "Tide Information reported a net profit attributable to the parent company of 3.932 billion yuan in the first three quarters of 2026, a year-on-year increase of 165.32%."
• "Tencore's net profit attributable to the parent company in the first three quarters of fiscal year 2026 was NT$8.324 billion"
• Seagate reported a net profit attributable to shareholders of $1.761 billion in the first fiscal quarter of 2027, a year-on-year increase of 220.77%.
• Sandisk reported a net profit attributable to the parent company of $11.433 billion for its fiscal year 2026, representing a year-on-year increase of 797%.
• Sandisk reported a net profit of $3.615 billion in the third fiscal quarter of 2026, a year-on-year increase of 287%.