SanDisk Slides 13% Despite 378% Revenue Surge, 8-for-1 Stock Split and Raised Guidance

SanDisk reported fiscal first-quarter 2027 revenue of $11.03 billion, a 378% jump from the prior-year period and a 23% sequential increase, with non-GAAP diluted earnings per share of $49.51 that beat 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 in stock. The board also approved an 8-for-1 forward stock split effective November 19, 2026, aimed at making the roughly $1,300 stock more accessible, including to employees through its stock purchase plan.

Data centers were the overwhelming driver of growth, with data-center revenue surging 61% to $4.8 billion and accounting for roughly 88% of the sequential revenue increase. Management guided fiscal Q2 revenue of $12.2 billion to $12.6 billion and adjusted EPS of $55.00 to $57.00, and executives said customers have locked in memory supply contracts through 2030, leaving the company effectively sold out for the rest of the decade.

Despite those results, shares fell sharply, sliding about 13% on the day to near $1,212 after an earlier premarket drop of roughly 9%, as the stock got caught in a broad technology selloff triggered by Intel's weak Q4 revenue guidance of $15 billion to $16 billion, well below estimates. The sequential growth rate slowing from 51% to 23% added to investor unease about whether SanDisk's explosive pace of expansion can be sustained. Peers moved sharply lower in sympathy, with Western Digital falling about 8%, Seagate around 7% and Micron roughly 6%.

A warning from Kioxia, SanDisk's longtime NAND manufacturing joint-venture partner, intensified the selling. Kioxia's fiscal Q3 outlook called for revenue of approximately $15.9 billion against analyst estimates of $18.6 billion, with operating profit of $12.7 billion versus an expected $14.9 billion, as a stronger yen and a potential peak in NAND pricing weighed on its forecast. Analysts at multiple firms trimmed their SanDisk price targets in response: Bank of America cut its target to $2,000 on valuation, Goldman Sachs also reduced its target, and Mizuho lowered its target citing the margin outlook. Rosenblatt held its Buy rating with a $2,400 target, and JPMorgan flagged 69% upside potential from current levels, with analysts widely describing the selloff as disconnected from the underlying fundamentals.