Sandisk Corporation (SNDK) traded at $1,270.01 in premarket action on Friday, down 4.5%, after closing Thursday's regular session 5.3% lower. Premarket quotes come from trading before the regular session opens, so prices can shift again once regular-hours trading begins. The sell-off came even though the company beat Wall Street expectations on both revenue and profit for its fiscal first quarter.

Strong Results Fail to Lift Shares

Sandisk reported adjusted earnings of $49.51 per share on revenue of $11.03 billion for its fiscal first quarter. The report covers the first quarter of Sandisk's fiscal 2027 — a fiscal calendar that runs ahead of the calendar year, which is why fiscal 2027 figures are being reported in late 2026. Analysts had expected $46.67 per share on $10.7 billion in revenue. Revenue rose 378% from a year ago.

Profitability improved sharply as well. Adjusted gross margin came in at 85.1%, up from 29.9% a year earlier and ahead of the 84% analysts were looking for. Adjusted free cash flow reached $5.7 billion. Adjusted metrics strip out items companies treat as one-time or non-core, and analyst estimates are generally compiled on the same adjusted basis.

Figures shared on X by market-data account Wall St Engine showed the results clearing consensus across the board: revenue beat the $10.64 billion estimate on a 378% year-over-year and 23% quarter-over-quarter increase; adjusted EPS of $49.51 topped the $46.22 estimate and rose 26% sequentially; adjusted gross margin of 85.1% exceeded the 84.1% estimate by a full percentage point and was up 55.2 percentage points year over year; and adjusted operating income of $8.87 billion surpassed the $8.44 billion estimate, up 25% from the prior quarter.

SANDISK $SNDK Q1'27 EARNINGS HIGHLIGHTS 🔹 Revenue: $11.03B (Est. $10.64B) 🟢; +378% YoY, +23% QoQ 🔹 Adj. EPS: $49.51 (Est. $46.22) 🟢; +26% QoQ 🔹 Adj. Gross Margin: 85.1% (Est. 84.1%) 🟢; +55.2 ppts YoY 🔹 Adj. Oper Income: $8.87B (Est. $8.44B) 🟢; +25% QoQ Q2 FY27 Guide: 🔹… pic.twitter.com/aXEPCTGmvw

— Wall St Engine (@wallstengine) October 29, 2026

https://x.com/wallstengine/status/2115899412467605854?ref_src=twsrc%5Etfw

Board Approves 8-for-1 Stock Split

Alongside the results, Sandisk announced that its board approved an 8-for-1 stock split. A split of that size gives holders seven additional shares for every share they own, and the per-share price mechanically resets to roughly one-eighth of its prior level, leaving the company's overall market value and each holder's percentage stake unchanged. Additional shares are expected to be distributed on Nov. 19, with split-adjusted trading set to begin on Nov. 30.

Data Center Strength, Weak Spots Elsewhere

Data center revenue was the star of the report. It rose 1,682% from a year ago to $4.8 billion, well above the $3.98 billion analysts projected, and climbed 61% compared with the prior quarter. That made it the fastest-growing part of the business by a wide margin.

Edge revenue, which covers flash memory for smartphones, PCs, automotive, tablets and physical AI applications, rose 320% to $5.8 billion. That still missed the $6.07 billion Wall Street had penciled in. Consumer revenue fell 39% to $397 million, short of the $590 million analysts had expected.

The headline beat therefore hid a couple of soft spots, and the market noticed. Total revenue grew 23% from the prior quarter, and BofA noted that roughly 60% of that growth came from volume and 40% from pricing.

Sandisk said its confidence rests on technology leadership, deep consumer partnerships and disciplined financial management. The company also sees AI-driven demand for NAND memory lasting beyond fiscal 2030. NAND is the flash storage technology used across the data center servers and consumer devices that make up Sandisk's main end markets.

Guidance and Analyst Reaction

For the fiscal second quarter ending in December, Sandisk expects revenue of $12.2 billion to $12.6 billion and adjusted earnings of $55.00 to $57.00 per share. Wall Street was looking for $12.31 billion in revenue and $53.60 per share. The company's gross margin outlook of 84.4% to 85.4% also tops the 84% analysts expected.

Analysts expect second-quarter data center revenue of $4.99 billion, Edge revenue of $6.35 billion and consumer revenue of $613 million. Those are the numbers the next report will be measured against.

BofA Securities lowered its price target on Sandisk to $2,000 from $2,500 and kept a Buy rating. The firm said it cut the target multiple to reflect late-cycle valuation concerns, while still citing AI inference making NAND memory more important.

Rivals also traded lower in premarket action Friday, a broad pullback across the memory and storage sector. Micron fell 3.8%, Western Digital dropped 5.8% and Seagate slid 5.1%.

Despite the pullback, Sandisk shares are up 460% this year through Thursday's close and 579% over the past 12 months. Next up is the stock split, with additional shares due Nov. 19 and split-adjusted trading starting Nov. 30.

This article is based on reporting originally published by CoinCentral.