Sandisk Q1 2026 earnings: revenue up 21% as datacenter demand and new chip technology ramp up
Sandisk's quarterly revenue jumped 21% from the prior quarter on strengthening chip demand, and the company hit a net-cash-positive milestone ahead of schedule.
| Q1 2026 | Reported |
|---|---|
| EPS | $0.75 |
| Revenue | $2.31B |
Figures as reported by the company to the SEC for the quarter ended October 3, 2025. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Revenue climbed 21% from the prior quarter to $2.31 billion, which the company said came in above the guidance range it had given investors, as demand for its flash-memory chips picked up.
- Revenue from datacenter customers — companies that buy storage for cloud computing — rose 26% quarter-over-quarter, with Sandisk saying it is now qualifying its products with additional large cloud providers.
- The company said it reached a ‘net cash positive’ milestone earlier than planned, meaning its cash and investments now exceed its total debt, a sign of improved financial flexibility.
- Its newest memory chip technology, called BiCS8, accounted for 15% of the memory capacity it shipped, and the company expects that share to become the majority of production by the end of fiscal 2026.
- Profitability metrics over the past year point to a business with strong pricing power right now: gross margin (the share of revenue left after production costs) ran around 71%, and operating margin around 61%, both unusually high for a hardware manufacturer.
- Alongside GAAP net income of $112 million ($0.75 per share), the company also reported an adjusted (non-GAAP) profit of $1.22 per share, which excludes items like stock-based compensation and other one-time charges.
- CEO David Goeckeler said customers are turning to Sandisk for its technology and product lineup at a time when demand for its chips is strengthening, describing the results as a phase of renewed growth and profitability.
- For the current quarter, Sandisk guided to revenue of $2.55 billion to $2.65 billion and adjusted profit of $3.00 to $3.40 per share.
Q1 2026 in context
| Metric | Oct 2025 | Sep 2024 | Change |
|---|---|---|---|
| Revenue | $2.3B | $1.9B | +22.6% |
| Net income | $112M | $211M | -46.9% |
| Free cash flow | $438M | -$198M | +321.2% |
| Diluted EPS | $0.75 | $1.46 | -48.6% |
| Gross margin | 29.8% | 38.6% | -8.8 pts |
| Operating margin | 7.6% | 15.5% | -7.8 pts |
| Net margin | 4.9% | 11.2% | -6.4 pts |
Figures for the quarter ended Oct 2025 and the quarter ended Sep 2024, as reported to the SEC.
How the stock took it
Sandisk Corp closed at $207.69 on Nov 6, 2025, the last session before the report, and at $267.95 on Nov 10, 2025, the first session after it — +29.0% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report