SanDisk Posts 378% Revenue Surge, Then Watches Its Stock Fall 12%
Published on 10/31/2026 at 19:50 | Editorial boerse-global.de
SanDisk delivered the kind of quarter most semiconductor companies can only dream about — and still finished Thursday down 12%. The gap between those two facts says more about how investors are pricing AI infrastructure today than any single line in the earnings report.
Revenue for the first quarter of fiscal 2027 came in at $11.03 billion, up 378% year over year. Adjusted earnings reached $49.51 per share. Both figures beat expectations, which makes the selloff harder to pin on the results themselves. Instead, the stock got caught in a broader technology rout — Reuters reported investor anxiety over whether heavy AI infrastructure spending will generate adequate returns, with disappointing Amazon numbers and a weak Intel outlook adding fuel.
Kioxia's Signal and the Memory Sector
Media reports also pointed to rival Kioxia as a drag on memory names. Kioxia's average NAND selling prices rose only in the mid-20% range in the September quarter, a sharp deceleration from 70% in the prior period. Those reports tied the slowdown, alongside Intel's soft guidance, to the pressure on memory stocks.
The underlying numbers, though, were anything but soft. Adjusted gross margin climbed to 85.1% from 29.9% a year earlier, and management guided to a range of 84.5–85.5% for the current quarter — a signal the company does not expect profitability to normalize sharply anytime soon. Whether that margin is a durable feature or a peak point in the memory cycle is precisely the debate now dividing investors.
Should investors sell immediately? Or is it worth buying SANDISK?
Data Centers Carry the Quarter as Consumer Sales Shrink
The split within SanDisk's own business tells its own story. Data center revenue hit $4.8 billion for the quarter, up 61% sequentially. Consumer product sales, by contrast, fell 39% year over year — a decline SanDisk partly attributed to higher prices. What supports margins on one side can erode demand on the other, and the memory upswing is clearly not reaching all customer groups evenly.
Management expects data centers to account for more than 55% of the NAND market in 2027, with bit demand from that segment more than doubling in 2026 and growing roughly another 40% the following year. Customers have signaled NAND requirements stretching beyond fiscal 2030, and Bloomberg Intelligence anticipates a supply shortage through at least the first half of 2028. Strong demand signals, however, are not the same as guaranteed margins.
$88.9 Billion in Unfulfilled Obligations
SanDisk's quarterly report also disclosed $88.9 billion in unfulfilled performance obligations as of October 2, all tied to long-term customer agreements. For the second quarter of fiscal 2027, the company guided to revenue of $12.2–12.6 billion and adjusted earnings of $55–57 per share before the split — another outlook that topped expectations.
SANDISK at a turning point? This analysis reveals what investors need to know now.
Analysts Trim Targets, Keep Ratings
Wall Street responded by cutting price targets without touching its ratings. Wells Fargo lowered its target to $1,300 from $1,550 while maintaining "Equal-Weight." RBC Capital reduced its own to $1,400 from $1,600, keeping "Sector Perform." Other research houses also trimmed targets, with new levels ranging from $2,000 to $2,720, leaving their respective ratings unchanged.
The 8-for-1 Split: A Calendar Marker, Not a Value Event
SanDisk also announced an 8-for-1 stock split on Thursday. Shareholders of record as of November 9 will receive seven additional shares for each one held, with split-adjusted trading set to begin November 20. The company's own guidance for second-quarter fiscal 2027 adjusted diluted earnings per share still reflects the pre-split basis. The split changes the share count, not the underlying value — the more consequential shift remains the one between consumer products and data centers, where the durability of SanDisk's current profitability will ultimately be decided.
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SANDISK Stock: New Analysis - 31 October
Fresh SANDISK information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
