SanDisk Corp

NASDAQ:SNDK

Strong Revenue Growth: Sandisk reported first quarter revenue of $2.3 billion, up 21% sequentially and 23% year-over-year, beating its guidance of $2.1–$2.2 billion.

EPS Beat: Non-GAAP EPS came in at $1.22, significantly above guidance of $0.70–$0.90, driven by higher revenue and gross margins.

Margin Expansion: Non-GAAP gross margin was 29.9%, up 350 basis points quarter-over-quarter and exceeding guidance, with improvement expected to continue.

Positive Free Cash Flow: Generated $448 million in adjusted free cash flow, achieving a net cash position of $91 million, ahead of target.

Demand Exceeds Supply: Company expects demand to outpace supply through at least the end of 2026, with products on allocation across all end markets.

Raised Q2 Guidance: Q2 revenue is guided to $2.55–$2.65 billion with non-GAAP gross margin forecast between 41% and 43% and EPS of $3.00–$3.40.

Data Center Momentum: Data center revenue grew 26% sequentially, led by strong AI and hyperscaler demand; management sees majority of growth coming from this segment.

Long-Term Contracts Emerging: Large customers are seeking longer-term volume and price commitments, improving visibility and planning.

Cost Tailwinds: BiCS 8 ramping drives productivity and lower costs; start-up and underutilization costs are phasing out.