---
title: "Sandisk's revenue jumps 378% to $11 billion and beats on every line but cash; shares still fall 5.3%"
description: "Revenue of $11.0 billion, up 378%, an 85.1% adjusted gross margin and a December-quarter guide above consensus gave Sandisk's $93.9 billion contracted floor its first earnings test. The shares still closed down 5.3% and wavered after hours: the post-2027 discount that has swept the memory trade has not lifted."
publisher: "The Inference"
section: "Chips"
published: 2026-10-29T23:19:59.633Z
modified: 2026-10-29T23:19:59.633Z
canonical: https://theinference.org/article/sandisk-s-revenue-jumps-378-to-11-billion-and-beats-on-every-line-but-cash-shares-still-fall-5-3
language: en
keywords: "Sandisk, Memory, NAND Flash, Earnings, AI, Stock Moves"
---

# Sandisk's revenue jumps 378% to $11 billion and beats on every line but cash; shares still fall 5.3%

> Revenue of $11.0 billion, up 378%, an 85.1% adjusted gross margin and a December-quarter guide above consensus gave Sandisk's $93.9 billion contracted floor its first earnings test. The shares still closed down 5.3% and wavered after hours: the post-2027 discount that has swept the memory trade has not lifted.

## The floor's first test: a beat on every line but cash

[Sandisk](https://theinference.org/markets/companies/sandisk) Corp., the Milpitas, California flash-memory maker spun out of [Western Digital](https://theinference.org/markets/companies/western-digital) in February 2025 [1], has taken the first earnings test of its contract book. For the three months to October 2, revenue was $11.03 billion, up 378% year on year; adjusted earnings of $49.51 a share beat the $46.67 [FactSet](https://theinference.org/markets/companies/factset) consensus; [adjusted gross margin reached 85.1%, against 29.9% a year earlier](https://uk.finance.yahoo.com/news/sandisk-reports-fiscal-first-quarter-200500680.html) [1][2]. Datacenter revenue of $4.80 billion, up 61% in a single quarter, is now 43.5% of sales [1][2].

*Chart: **Revenue is up almost fivefold in a year; the December guide extends the ramp** Column chart of Sandisk quarterly revenue from the September 2025 quarter to the December 2026 guided quarter, rising from $2.3 billion to a guided $12.4 billion midpoint*

*Fiscal quarters labeled by calendar quarter; the first-quarter 2027 period ended October 2, 2026. The last bar is the $12.4 billion midpoint of company guidance for the December quarter, within a guided range of $12.2 billion to $12.6 billion. Sources: Sandisk SEC filings, the fiscal Q1 2027 earnings release and Investor's Business Daily. [1][2][10]*

[The December quarter is guided to $12.2–12.6 billion of revenue and $55–57 of adjusted earnings per share](https://www.msn.com/en-us/news/other/sandisk-clears-fiscal-q1-targets-announces-8-for-1-stock-split/ar-AA2gmJ87), above FactSet's $12.31 billion and $53.60 [1][2]. An eight-for-one stock split takes effect November 19, after $5.0 billion of buybacks last quarter [1]. One line missed: operating cash flow of $6.36 billion fell short of the roughly $6.7 billion analysts expected, as receivables swelled by $1.9 billion in the quarter [1][3].

*Chart: **Cash stopped keeping pace: operating cash flow slipped as revenue jumped** Column chart of Sandisk quarterly revenue and operating cash flow over five quarters to October 2026: revenue climbs from $2.3 billion to $11.0 billion while operating cash flow dips from $7.1 billion to $6.36 billion in the latest quarter*

*Quarterly revenue and operating cash flow in billions of US dollars; quarters labeled by calendar quarter, the latest ended October 2, 2026. Cash flow of $6.36 billion missed the roughly $6.7 billion analysts expected as receivables rose $1.9 billion in the quarter. Sources: Sandisk SEC filings and the fiscal Q1 2027 earnings release. [1][10]*

## Beats are getting sold across the memory trade

Sandisk fell 5.3% to $1,330.05 in the regular session [2]. After the bell it swung between $1,275 and $1,371 before settling about 2.7% below the close [4][5]. [Seagate](https://theinference.org/markets/companies/seagate), the disk-drive maker, and Western Digital each fell about 3% in the same extended session [5]. The week set the pattern.

[Seagate beat estimates and raised its dividend, and still slid](https://247wallst.com/investing/2026/10/28/sk-hynix-jumps-7-micron-rises-3-on-memory-shortage-call-through-2030-while-seagate-slips-despite-upbeat-guidance/) [6]. Western Digital dropped after its capital outlays fed worries over the durability of AI spending [3]. [Silicon Motion](https://theinference.org/markets/companies/silicon-motion), which makes the controller chips inside solid-state drives, has now guided above the high end for two straight quarters, and Wedbush, the brokerage, notes the shares barely react, trading near 10 times 2027 estimates [7]. Its read: the market is discounting everything past 2027 [7].

*Chart: **The durability discount: every memory name fell double digits in a month** Bar chart of one-month share-price declines across five memory and storage stocks: Seagate down 29%, Sandisk down 24%, SK hynix down 19%, Western Digital down 15%, Micron down 11%*

*Share-price change over the month to October 28, 2026. Source: 24/7 Wall St. [6]*

## What the contract book bought

The book: [at least $93.9 billion of expected revenue at contractual floor prices](https://www.msn.com/en-us/money/general/sandisk-stock-is-falling-on-ai-fears-its-93-9-billion-contract-book-tells-another-story/ar-AA2ejTPi), across eight customers with a weighted-average duration beyond four years, backed by $16.5 billion of financial guarantees [8]. Remaining performance obligations, the signed orders not yet shipped, stood at $59.8 billion at the last quarter-end, $91.1 billion including deals signed after it closed [8].

The agreements should cover roughly half of what Sandisk ships this fiscal year; the rest still sells at market prices [9]. Management cites customer signals running past fiscal 2030 [3]. The mix shows who pays: datacenter revenue up 61% in a quarter, consumer revenue down 29%, at $397 million [1]. [The Inference laid out this gap on October 21](https://theinference.org/article/sandisk-s-93-9-billion-floor-is-contracted-but-samsung-and-sk-hynix-add-nand-layers-in-china); tonight priced it.

## No downturn has tested these floors

The bear case keeps its own receipts. In fiscal 2023, the last flash downturn, revenue at this business fell 38% and gross margin went from about 24% to below zero within two quarters, closing the year at a $2.1 billion net loss [9].

Roughly two-thirds of the sequential growth in the quarter ended in July came from price, not volume [9]. The contracts promise floors, not immunity from a cycle [8]. [SK hynix](https://theinference.org/markets/companies/sk-hynix), the Korean memory maker, with more than half its 2027–28 capacity already committed and a shortage it says could run through 2030, still lost 19% of its value in a month [6].

## The next test is cash conversion, not the guide

The next evidence is cash conversion, not the revenue guide: whether the $1.9 billion receivables build unwinds in the December quarter, and whether gross margin holds its guided 84.5–85.5% band while TrendForce, the industry price tracker, [expects contract prices to rise another 15–20%](https://www.fool.com/investing/2026/10/12/sandisk-s-sales-fell-38-in-the-last-flash-memory-downturn-and-its-oct-29-report-is-the-next-test/) [1][9]. The floors guarantee a minimum price on contracted shipments; they do not guarantee that investors will pay up for profits past 2027 [1][9]. The next reading is the December quarter, due in late January.

## Takeaway

Every line beat except cash: a $1.9 billion receivables build pushed operating cash flow below forecasts, and traders kept the post-2027 discount on memory profits.

## Sources

1. [Business Wire via Yahoo Finance UK, Sandisk Reports Fiscal First Quarter 2027 Financial Results, 29 October 2026](https://uk.finance.yahoo.com/news/sandisk-reports-fiscal-first-quarter-200500680.html)
2. [Investor's Business Daily via MSN, SanDisk clears fiscal Q1 targets, announces 8-for-1 stock split, 29 October 2026](https://www.msn.com/en-us/news/other/sandisk-clears-fiscal-q1-targets-announces-8-for-1-stock-split/ar-AA2gmJ87)
3. [Bloomberg, Sandisk Posts Strong Profit, Upbeat Outlook on Growing AI Demand, 29 October 2026](https://www.bloomberg.com/news/articles/2026-10-29/sandisk-posts-strong-profit-upbeat-outlook-on-growing-ai-demand)
4. [Shacknews, Sandisk (SNDK) Q1 FY27 earnings results beat EPS and revenue expectations, 29 October 2026](https://www.shacknews.com/article/151205/sandisk-sndk-q1-2027-earnings-results)
5. [Seeking Alpha News, Sandisk perks up as storage strength boosts Q1 results, guidance; unveils 8-1 stock split, 29 October 2026](https://seekingalpha.com/news/4660342-sandisk-slips-even-as-storage-strength-boosts-q1-results-guidance-unveils-8-1-stock-split)
6. [24/7 Wall St., SK Hynix Jumps 7%, Micron Rises 3% on Memory Shortage Call Through 2030 While Seagate Slips Despite Upbeat Guidance, 28 October 2026](https://247wallst.com/investing/2026/10/28/sk-hynix-jumps-7-micron-rises-3-on-memory-shortage-call-through-2030-while-seagate-slips-despite-upbeat-guidance/)
7. [Proactive Investors via Yahoo Finance, Silicon Motion's strong guidance fails to lift shares as market misjudges business, Wedbush says, 29 October 2026](https://finance.yahoo.com/markets/stocks/articles/silicon-motion-strong-guidance-fails-175600202.html)
8. [Benzinga via MSN, SanDisk stock is falling on AI fears. Its $93.9 billion contract book tells another story, 15 October 2026](https://www.msn.com/en-us/money/general/sandisk-stock-is-falling-on-ai-fears-its-93-9-billion-contract-book-tells-another-story/ar-AA2ejTPi)
9. [The Motley Fool, Sandisk's Sales Fell 38% in the Last Flash Memory Downturn, and Its Oct. 29 Report Is the Next Test, 12 October 2026](https://www.fool.com/investing/2026/10/12/sandisk-s-sales-fell-38-in-the-last-flash-memory-downturn-and-its-oct-29-report-is-the-next-test/)
10. [Sandisk, quarterly figures from its SEC filings, retrieved 29 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0002023554)


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Sandisk's revenue jumps 378% to $11 billion and beats on every line but cash; shares still fall 5.3% — The Inference. Canonical: https://theinference.org/article/sandisk-s-revenue-jumps-378-to-11-billion-and-beats-on-every-line-but-cash-shares-still-fall-5-3