Sandisk Corporation · NASDAQ:SNDK
Sandisk — Q1 2027 Earnings Presentation
25 slides from Sandisk's earnings presentation, Oct 29, 2026
Slide 1: Financial Results Fiscal First Quarter 2027
FINANCIAL RESULTS FISCAL FIRST QUARTER 2027 OCTOBER 29, 2026 | QUARTER ENDED 10.02.26
Slide 2: Disclaimers
Disclaimers FORWARD-LOOKING STATEMENTS NON-GAAP MEASURES This presentation contains forward-looking Other key risks and uncertainties that could cause risks associated with the use of artificial intelligence This presentation includes references to Non-GAAP statements within the meaning of U.S. fede
Slide 3: Overview
Overview • We began fiscal 2027 with another strong quarter, creating value for customers and shareholders and delivering results above guidance • Q1 delivered $11.0 billion of revenue, 85.1% non-GAAP gross margin, and $49.51 non-GAAP EPS, with $5.7 billion of adjusted free cash flow and $5 billion
Slide 4: AI Inference: Expanding NAND's Role
AI Inference: Expanding NAND’s Role 01 The need for scalable memory and storage is expanding as inference workloads grow, making NAND increasingly integral to AI infrastructure 02 Each generated token must reference the context that precedes it, creating a growing KV cache that serves as the model’s
Slide 5: Technology and Product Leadership
Technology and Product Leadership • BiCS 8 is the backbone of our current production portfolio and the industry benchmark for performance and density across TLC and QLC • BiCS 8 introduced our CMOS directly Bonded to Array (CBA) architecture, establishing the framework for future generations • BiCS
Slide 6: Fiscal Q1 2027 Financial Highlights
Fiscal Q1 2027 Financial Highlights (1) ~$11.0B $49.51 +23% QoQ 85.1% $5.7B +378% YoY Non-GAAP Diluted Non-GAAP Adjusted Revenue Net Income per Share Gross Margin Free Cash Flow (2) Approximately 60% of the sequential revenue increase came from volume growth and 40% from higher pricing. 1. Non-GAAP
Slide 7: Fiscal Q1 2027 Financial Performance by End-market
Fiscal Q1 2027 Financial Performance by End-market In millions Datacenter Edge Consumer Non-GAAP Gross Margin % $11,000 100% 85% 85% 78% $9,000 80% $7,000 51% 60% $5,000 30% 40% $3,000 $1,000 20% $(1,000) FQ1'26 FQ2'26 FQ3'26 FQ4'26 FQ1'27 0% Datacenter Edge Consumer Revenue Revenue Revenue $4.8 bil
Slide 8: End-markets: Datacenter
End-markets: Datacenter • Our portfolio addresses the full range of AI infrastructure requirements, from performance-intensive enterprise SSDs to high-capacity platforms • We estimate Datacenter has grown from ~20% of industry bits early in the decade to roughly half of industry bits today • Q1’FY27
Slide 9: End-markets: Edge
End-markets: Edge • Edge is a large and strategically important market, spanning smartphones, PCs, automotive, tablets, and an expanding range of physical AI applications • Automotive is becoming an increasingly important growth vector in our Edge business and a meaningful long-term growth opportuni
Slide 10: End-markets: Consumer
End-markets: Consumer • Our Consumer business remains a differentiated strategic asset • Combines direct brand engagement with hundreds of millions of end users and broad shelf presence across the world’s leading channel partners • Provides a durable foundation for our business • Q1’FY27 revenue of
Slide 11: New Business Models (NBMs)
New Business Models (“NBMs”) 8 $93.9B $88.9B $16.5B Customers signed across Minimum contracted NBM Financial guarantees: cash RPO at quarter-end Datacenter and Edge revenue at floor pricing deposits and instruments ~1/2 ~2/3 4+ yrs of bits committed under NBMs in FY2027 of bits committed under NBMs
Slide 12: Share Repurchase Progression
Share Repurchase Progression Q4 FY26 Q1 FY27 TWO-QUARTER TOTAL $4.5B $5.0B $9.5B deployed in share repurchases deployed in share repurchases returned through repurchases ~2.8M 157M ~3.2M 154M 6.0M ~4% diluted shares diluted shares shares repurchased shares repurchased of shares outstanding outstandi
Slide 13: Market Outlook
Market Outlook • Our confidence in the long-term health of the market is reinforced by the structural growth of AI infrastructure and the expanding role of NAND across inference workloads • We expect a strong market in calendar year 2027 • Datacenter is expected to again be the engine of growth, rep
Slide 14: Non-GAAP Financial Results
Non-GAAP Financial Results(1) ($ in millions, except for Diluted Net Income per Share) Q1'26 Q4'26 Q1'27 QoQ YoY Revenue $2,308 $8,965 $11,031 up 23% up 378% Gross Margin % 29.9% 84.6% 85.1% up 0.5 ppt up 55.2 ppt Operating Expenses $446 $484 $513 up 6% up 15% Operating Income $245 $7,104 $8,871 up
Slide 15: Gross and Cash Capital Expenditure Trends and Plan
Gross and Cash Capital Expenditure Trends and Plan Quarter Ended October 2, 2026 Revenue, net $11,031 • JV Gross CapEx fluctuates based primarily on node transitions and aligning Sandisk share of JV Gross CapEx $324 supply with demand Funding mechanisms: External funding ($44) • JV Gross CapEx is ty
Slide 16: Fiscal Second Quarter Guidance
Fiscal Second Quarter Guidance Fiscal Second Quarter Guidance GAAP Non-GAAP(1) Revenue ($M) $12,200 - $12,600 $12,200 - $12,600 Gross Margin 84.4% - 85.4% 84.5% - 85.5% Operating Expenses ($M) $677 - $745 $540 - $560 Tax Expense ($M)(2) N/A 14.3% Diluted Net Income per Share N/A $55.00 - $57.00 Dilu
Slide 17: Appendix
APPENDIX 00.017 ©2026 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED
Slide 18: Joint Venture Operational Framework
Joint Venture Operational Framework Joint Venture Operational Framework Flash Ventures 49.9% Owned by Sandisk 50.1% Owned by Kioxia Co-develops flash (including process technology and Owns and leases equipment for flash wafer production Co-develops flash (including process technology and memory desi
Slide 19: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations GAAP to Non-GAAP Reconciliations In millions; unaudited Q1'26 Q2'26 Q3'26 Q4'26 Q1'27 Revenue 2,308 3,025 5,950 8,965 11,031 GAAP Gross Profit $687 $1,541 $4,662 $7,582 $9,378 Stock-based compensation expense 4 5 4 6 6 Non-GAAP Gross Profit $691 $1,546 $4,666 $7,588
Slide 20: GAAP to Non-GAAP Reconciliations (cont'd)
GAAP to Non-GAAP Reconciliations (cont’d) GAAP to Non-GAAP Reconciliations (cont’d) In millions; unaudited Q1'26 Q4'26 Q1'27 GAAP Operating Income $176 $7,037 $8,780 Gross profit adjustments 4 6 6 Operating expense adjustments 65 61 85 Non-GAAP Operating Income $245 $7,104 $8,871 GAAP Operating Marg
Slide 21: GAAP to Non-GAAP Reconciliations (cont'd)
GAAP to Non-GAAP Reconciliations (cont’d) In millions, except per share amount; unaudited Q1'26 Q4'26 Q1'27 GAAP net income $112 $6,903 $8,101 Stock-based compensation expense 53 67 91 Business separation costs 9 — — Employee termination and other (3) — — Loss on business divestiture 10 — — Gain on
Slide 22: GAAP to Non-GAAP Reconciliations (cont'd)
GAAP to Non-GAAP Reconciliations (cont’d) GAAP to Non-GAAP Reconciliations (cont’d) In millions; unaudited Q1'26 Q4'26 Q1'27 Cash Flows Cash flow provided by operating activities 488 7,126 6,363 Purchases of property, plant and equipment, net (50) (43) (54) Free Cash Flow $438 $7,083 $6,309 Activity
Slide 23: GAAP to Non-GAAP Reconciliations footnotes
GAAP GAAP to Non-GAAP Reconciliations to Non-GAAP (cont’d) Reconciliations (cont'd) FOOTNOTES To supplement the consolidated financial statements presented in accordance with GAAP, the table above sets forth Non-GAAP gross profit; Non-GAAP gross margin; Non-GAAP operating expenses; Non-GAAP operatin
Slide 24: GAAP to Non-GAAP Reconciliations footnotes
GAAP GAAP to Non-GAAP Reconciliations to Non-GAAP (cont’d) Reconciliations (cont'd) Employee termination and other. From time to time, in order to realign the Company’s operations with anticipated market demand, the Company may terminate employees and/or restructure its operations. From time to time
Slide 25: LANOISK"
LANOISK"