SanDisk Drops 9% Despite Blowout Q1 Earnings, Raised Guidance and 8-for-1 Stock Split

SanDisk shares fell roughly 9% in premarket trading on October 30 after the memory-chip maker reported fiscal first-quarter results that beat estimates across the board, raised its outlook and announced an 8-for-1 stock split, signaling investors expected even more from one of this year's biggest storage-sector winners. The stock was trading near $1,212, dragging peers lower, with Western Digital tumbling about 8%, Seagate sliding around 7% and Micron falling roughly 6%.

SanDisk's fiscal Q1 revenue came in at $11.0 billion, up 23% sequentially and 378% from the prior-year period, with non-GAAP diluted earnings per share of $49.51, beating consensus by $2.84. Non-GAAP gross margin reached 85.1%, and the company generated $5.7 billion in adjusted free cash flow while repurchasing $5 billion of stock during the quarter. Data-center revenue rose 61% sequentially to $4.8 billion, driven by AI workloads increasing NAND demand for inference, key-value caches, data staging and data lakes.

For fiscal Q2, management guided revenue to a range of $12.2 billion to $12.6 billion and non-GAAP diluted EPS on a pre-split basis to $55.00 to $57.00, in line with or slightly above the analyst consensus of $54.69. The board approved the 8-for-1 forward stock split effective November 19, 2026, with split-adjusted trading set to begin November 20, aimed at making the stock more accessible including through the company's employee stock purchase plan. Four leveraged ETFs tied to the stock lost as much as 11% on the day.