Demand for NAND products continued to outpace our supply, a dynamic we expect to persist through the end of calendar year '26 and beyond.
— David V. Goeckeler
03Detailed Report
SNDK
Company SNDK
Period
Q1 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 22, 2026
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Executive Summary
Sandisk reported a strong start to fiscal year 2026 (QQ1) with revenue of $2.308 billion, marking a 21% rise quarter-over-quarter and 23% year-over-year. Non-GAAP EPS of $1.22 exceeded guidance, aided by higher-than-expected gross margins and a favorable tax rate. The company generated $448 million in adjusted free cash flow and exited the quarter with a net cash position of about $91 million, underscoring disciplined balance-sheet management amid a supply-constrained NAND market. Management highlighted robust demand across data center, edge, and consumer end-markets, with BiCS8 driving mix and the data-center transition accelerating as hyperscalers seek higher performance, density, and energy efficiency. QQ1 also featured meaningful progress on BiCS8 ramp and key qualifications for Stargate enterprise SSDs, setting Sandisk up for continued margin expansion and cash-flow generation into calendar 2026.
Key Performance Indicators
Revenue
Increasing
2.31B
QoQ: 36.17% | YoY: 68.99%
Gross Profit
Increasing
687.00M
29.77% margin
QoQ: 79.84% | YoY: 26.44%
Operating Income
Increasing
176.00M
QoQ: 109.36% | YoY: 28.36%
Net Income
Increasing
112.00M
QoQ: 105.79% | YoY: 42.94%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $2.308B, QoQ +21%, YoY +23%. End-market mix: Edge $1.387B (60% of revenue), Consumer $0.652B (28%), Data Center $0.269B (12%). Non-GAAP gross margin: 29.9% (up 350 bps QoQ); ex-startup/underutilization gross margin would have been 33.1%. Start-up costs: $61M; underutilization: $11M. Non-GAAP operating expenses: $446M, above guidance of $415-430M due to higher variable compensation. Non-GAAP operating margin: 10.6% (up 530 bps QoQ). Non-GAAP EPS: $1.22, vs guidance of $0.70-$0.90. Free cash flow: $448M; operating cash flow: $488M; capital expenditures: $387M (16.8% of revenue). Cash position: $1.442B; gross debt: $1.351B; net cash: ~$(91)M. Inventory days reduced from 135 to 115. Guidance for Q2: revenue $2.55-2.65B; non-GAAP gross margin 41-43%; non-GAAP OpEx $450-475M; non-GAAP tax $80-90M; non-GAAP EPS $3.00-3.40 (assuming 155M diluted shares). BiCS8 transition expected to be the most significant node for FY2026 with CapEx unchanged and mid-to-high-teens long-term bit-demand CAGR projected.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.31B
68.99%
36.17%
Gross Profit
687.00M
26.44%
79.84%
Operating Income
176.00M
28.36%
109.36%
Net Income
112.00M
42.94%
105.79%
Key Financial Ratios
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