Sandisk Q1 results beat, with revenue up 378% on strong datacenter demand

Overview

• US memory chipmaker's fiscal Q1 revenue surged yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Company announced eight-for-one stock split and repurchased $5 bln in shares

Outlook

• Sandisk expects Q2 2027 revenue between $12.2 bln and $12.6 bln

• Company forecasts Q2 2027 non-GAAP diluted EPS of $55.00 to $57.00 pre-split

• Sandisk projects Q2 2027 non-GAAP gross margin of 84.5% to 85.5%

Result Drivers

• DATACENTER DEMAND - Co said robust and growing demand for its products drove outpaced growth in its data center business

• EDGE MARKET GROWTH - Revenue from edge business increased 7% sequentially and 320% yr/yr

• CONSUMER SEGMENT DECLINE - Consumer revenue fell 29% sequentially and 39% yr/yr

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 25 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the computer hardware peer group is "buy"

• Wall Street's median 12-month price target for SanDisk Corporation is $2,150.00, about 53% above its October 28 closing price of $1,404.77

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• Oct 28 - SK Hynix unveils $75 billion shareholder return plan after posting record profit

• Oct 29 - Samsung sees AI chip shortage worsening, keeps investors in suspense on returns

• Oct 27 - Netherlands' ASM International Q3 revenue jumps on strong growth in memory sales

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)