SanDisk Q1 Profit Surges 587%, Shares Jump 7%+

On November 6, after U.S. markets closed, SanDisk released its Q1 FY2026 earnings, surpassing analyst expectations thanks to tight supply and rising prices in the memory chip market. The strong performance, combined with an optimistic Q2 outlook, drove SanDisk shares up 7.27% in after-hours trading.

SanDisk reported Q1 revenue of $2.31 billion, up 22.6% year-over-year and 21% sequentially, exceeding the analyst estimate of $2.15 billion. GAAP net income reached $112 million, down 47% YoY but up 587% sequentially, with GAAP EPS of $0.75, down 49% YoY but up 569% sequentially. Non-GAAP net income was $181 million, down 31% YoY but up 331% sequentially, with Non-GAAP EPS of $1.22, surpassing the $0.88 analyst estimate.

In the data center segment, Q1 revenue grew 26% sequentially, with SanDisk qualifying for two hyperscale enterprises, while a third hyperscale and a top-tier storage OEM are set for 2026 launches. Partnerships with five major hyperscale clients were also established.

Notably, BiCS8 technology accounted for 15% of total Q1 shipments.

CEO David Goeckeler commented, "Customers are turning to SanDisk because our leading technology and products are well-positioned to meet growing demand. Our strong balance sheet and portfolio, combined with renewed growth and profitability at this stage, allow us to achieve positive net cash milestones ahead of schedule and create meaningful long-term value for shareholders."

Looking ahead, SanDisk expects Q2 revenue between $2.55 billion and $2.65 billion, above analyst estimates of $2.36 billion. Non-GAAP diluted EPS is projected at $3.00–$3.40, significantly exceeding the $1.82 consensus.