Shares of Sandisk Corporation (SNDK), the flash storage maker spun off from Western Digital in early 2025, closed down 5.32% at $1,330.05 before rebounding 2.87% to $1,368.28 in after-hours trading, following fiscal first-quarter 2027 results that showed sharp revenue and earnings growth. Alongside the report, the company announced an eight-for-one stock split and issued second-quarter revenue guidance above its first-quarter total. Sandisk reports on a fiscal calendar that does not match the calendar year.

Strong Quarterly Earnings Across the Board

Sandisk posted fiscal first-quarter 2027 revenue of $11.031 billion, representing a 23% increase from the previous quarter and a 378% climb from $2.308 billion a year earlier, reflecting substantial growth across its business segments. The company also recorded significant earnings growth as demand for storage products strengthened.

GAAP net income reached $8.101 billion, up from $6.903 billion in the preceding quarter. Diluted earnings per share rose 20% sequentially to $52.60, while non-GAAP diluted earnings per share came in at $49.51. Non-GAAP net income totaled $7.624 billion, marking a 24% increase quarter over quarter. Non-GAAP figures, which exclude items companies treat as outside core operations, are presented alongside GAAP results so readers can compare the two measures.

Profitability improved during the period as gross margins expanded across operations. GAAP gross margin reached 85.0%, compared with 84.6% in the prior quarter, while non-GAAP gross margin increased to 85.1%. Non-GAAP operating income rose 25% to $8.871 billion.

Data Center Revenue Surges 61% as Storage Demand Strengthens

Sandisk's data center business delivered one of the strongest performances of the quarter, generating $4.802 billion in revenue, a 61% increase from $2.977 billion in the previous quarter. The result underscored the growing contribution of data center storage to the company's overall business. Data center storage is a segment that industry analysts track closely, because spending on cloud and enterprise infrastructure is a major driver of storage purchases.

The edge segment generated $5.832 billion, up 7% from $5.432 billion in the preceding quarter, while consumer revenue declined 29% sequentially to $397 million from $556 million. The contrasting results showed data center and edge operations driving growth as consumer demand remained weaker.

Year-over-year comparisons highlighted the scale of Sandisk's revenue expansion across its major markets. Edge revenue increased 320% from $1.387 billion, data center revenue rose substantially from $269 million — a nearly eighteenfold increase — and consumer revenue fell 39% from $652 million during the same period.

8-for-1 Stock Split and Q2 Guidance

The eight-for-one forward stock split, announced alongside the quarterly results, is intended to make shares more accessible. Under the plan, shareholders of record on November 9, 2026, will receive seven additional shares for every share held. The company expects to issue the additional shares after market close on November 19, 2026, with trading on a split-adjusted basis expected to begin at market open on November 20, 2026. At the after-hours price of $1,368.28, an eight-for-one split would work out to roughly $171 per share once trading adjusts, a figure that will move with the stock in the meantime.

The split will not change Sandisk's overall market capitalization or shareholders' proportional ownership. The company also said it intends to improve employee access to its stock through its employee stock purchase plan.

For fiscal second-quarter 2027, Sandisk expects revenue to range between $12.2 billion and $12.6 billion, with management projecting non-GAAP diluted earnings per share of $55.00 to $57.00 on a pre-split basis. The guidance points to further sequential growth following the strong first-quarter performance; the revenue range implies growth of roughly 11% to 14% over the first-quarter total, a comparison investors will be able to measure when the company reports its next set of results.

Sandisk also continued its capital return program through substantial share repurchases during the quarter, buying back approximately 3.2 million shares for $5 billion. Across the past two fiscal quarters, the company repurchased six million shares, representing approximately 4% of its total outstanding shares. Repurchases of this kind reduce the number of shares outstanding over time.

Sandisk combined strong quarterly results with a significant expansion in data center revenue and a planned stock split, while its second-quarter revenue forecast indicates expectations for continued business growth. The upcoming split will adjust the share count and per-share price without changing the company's underlying market value.

This article was originally published by Blockonomi: Sandisk Corporation (SNDK) Stock: Data Center Revenue Jumps 61% as Company Unveils 8-for-1 Split