How Did SanDisk’s Q1 Revenue Reach $11 Billion, Up 378% Year on Year, as Data Centre Revenue Jumped Nearly Seventeenfold?

Buoyed by surging demand for NAND flash as AI infrastructure expands, SanDisk announced its first-quarter fiscal 2027 results after the US market closed on Thursday. Higher product pr

ices also supported performance, with quarterly revenue climbing 378% year on year and data centre revenue jumping nearly seventeenfold. Alongside an eight-for-one stock split, the company announced that it expects revenue to rise further next quarter.

Revenue for SanDisk’s first fiscal quarter, which ended on 2 October 2026, stood at $11.031 billion. This represented growth of 378% from $2.308 billion a year earlier and 23% from the preceding quarter’s $8.965 billion. At 85.1%, the first-quarter non-GAAP gross margin was 55.2 percentage points above the year-earlier level of 29.9% and 0.5 percentage points higher than the previous quarter’s 84.6%. Higher shipment volumes accounted for approximately 60% of sequential revenue growth, SanDisk said, while higher product prices contributed the remaining 40%. The breakdown highlighted the combined contribution of robust demand and price increases to its performance.

Data centres led growth across SanDisk’s end markets. Revenue from the segment rose to $4.8 billion in the first quarter, a gain of 61% over the previous quarter and 1,682% year on year. This exceeded the company’s estimate of overall market growth for the quarter.

The ongoing expansion of AI infrastructure is fuelling rapid growth in data centre demand for high-performance enterprise solid-state drives and high-capacity storage platforms. To address rising customer requirements, SanDisk directed a greater share of product supply towards the data centre market during the first fiscal quarter. Its customer relationships, including partnerships with three US hyperscale cloud service providers, helped sustain growth in the data centre business, the company said.

SanDisk’s internal market model puts data centres’ current share of total NAND industry bit demand at around 50%, compared with approximately 20% in the early years of this century. The company expects that share to exceed 55% of total NAND market demand in 2027. Following growth of more than double in 2026, data centre bit demand is projected to rise by approximately another 40% year on year in 2027.

Market Insight: How Far Does SanDisk’s Demand Visibility Extend?

Customer demand signals extend beyond fiscal 2030, according to SanDisk, and recent talks with leading AI companies point to scope for additional demand growth. The company also highlighted that demand covered by its pipeline of long-term agreements already surpasses its supply capacity through the end of this decade.