Sandisk Corporation · NASDAQ:SNDK
Sandisk — Q1 FY2026 Earnings Presentation
19 slides from Sandisk's earnings presentation, Nov 6, 2025
Slide 1: Fiscal First Quarter 2026 Financial Results
Fiscal First Quarter 2026 Financial Results Quarter ended October 3, 2025 Thursday, November 6, 2025
Slide 2: Disclaimers
Disclaimers “START” “REPEAT” “1988/2025” Forward-Looking Statements This presentation contains forward-looking statements within the meaning of U.S. federal securities laws, including, but not limited to, statements regarding expectations for: Sandisk Corporation’s (the “Company’s”) business outlook
Slide 3: Fiscal First Quarter Executive Summary
Fiscal First Quarter Executive Summary “START” “REPEAT” “1988/2025” Corporate • Results reflect strong execution in an environment marked by strengthening demand across our end markets • Rapid growth of AI is creating a strong tailwind for our high-capacity, power-efficient SSDs enabled by our BiCS8
Slide 4: Business Highlights
Business Highlights “START” “REPEAT” “1988/2025” Datacenter End Market • Growing momentum • Datacenter revenue grew 26% sequentially • Increasing demand for storage-focused “Stargate” product line • Two qualifications underway with hyperscalers • Qualification with an additional hyperscaler along wi
Slide 5: Business Highlights (cont'd)
Business Highlights (cont'd) “START” “REPEAT” “1988/2025” Edge End Market • Positive momentum from a PC refresh cycle, aided by Windows 11 adoption and Windows 10 end of life • Continued momentum in Edge as device upgrades accelerate, driving increasing NAND content • Continued content growth • High
Slide 6: Revenue Trends by End Market
Revenue Trends by End Market “START” “REPEAT” “1988/2025” Datacenter Edge Consumer In millions In millions In millions Revenue Revenue Revenue $269 million $1,387 million $652 million Increased 26% QoQ Increased 26% QoQ Increased 11% QoQ 00.06 ©2025 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS R
Slide 7: Non-GAAP Financial Results
Non-GAAP Financial Results(1) “START” “REPEAT” “1988/2025” ($ in millions, except for Diluted Net Income per Share) Q1'25 Q4'25 Q1'26 QoQ YoY Revenue $1,883 $1,901 $2,308 up 21% up 23% Gross Margin % 38.9% 26.4% 29.9% up 3.5 ppt down 9 ppt Operating Expenses $378 $402 $446 up 11% up 18% Operating In
Slide 8: Gross and Cash Capital Expenditure Trends and Plan
“START” “REPEAT” “1988/2025” Gross and Cash Capital Expenditure Trends and Plan In millions Quarter Ended October 3, 2025 Revenue, net $2,308 • JV Gross CapEx fluctuates based primarily on node transitions and aligning Sandisk share of JV Gross CapEx $337 supply with demand Funding mechanisms: Exter
Slide 9: Fiscal Second Quarter Guidance
“START” “REPEAT” “1988/2025” Fiscal Second Quarter Guidance GAAP Non-GAAP(1) Revenue ($M) $2,550 to $2,650 $2,550 to $2,650 Gross Margin 40.8% to 42.8% 41.0% to 43.0% Operating Expenses ($M) $497 to $538 $450 to $475 Interest and Other Expense, net ($M) $38 to $43 $40 to $45 Tax Expense ($M)(2) N/A
Slide 10: Joint Venture Operational Framework
“START” “REPEAT” “1988/2025” 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 design) wit
Slide 11: “START” “REPEAT” “1988/2025”
“START” “REPEAT” “1988/2025”
Slide 12: Appendix
“START” “REPEAT” “1988/2025” Appendix 00.012 ©2025 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED
Slide 13: GAAP to Non-GAAP Reconciliations
“START” “REPEAT” “1988/2025” GAAP to Non-GAAP Reconciliations In millions; unaudited Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Revenue $1,883 $1,876 $1,695 $1,901 $2,308 GAAP Gross Profit $726 $606 $382 $498 $687 Stock-based compensation expense 6 3 3 4 4 Non-GAAP Gross Profit $732 $609 $385 $502 $691 In millio
Slide 14: GAAP to Non-GAAP Reconciliations (cont'd)
“START” “REPEAT” “1988/2025” GAAP to Non-GAAP Reconciliations (cont'd) In millions; unaudited Q1'25 Q4'25 Q1'26 GAAP Operating Income $291 $18 $176 Gross profit adjustments 6 4 4 Operating expense adjustments 57 78 65 Non-GAAP Operating Income $354 $100 $245 GAAP Interest and Other Expense, Net $(24
Slide 15: GAAP to Non-GAAP Reconciliations (cont'd)
“START” “REPEAT” “1988/2025” GAAP to Non-GAAP Reconciliations (cont'd) In millions, except per share amount; unaudited Q1'25 Q4'25 Q1'26 GAAP Net Income (Loss) $211 $(23) $112 Stock-based compensation expense 41 49 53 Business separation costs 20 17 9 Employee termination and other 2 16 (3) Loss on
Slide 16: GAAP to Non-GAAP Reconciliations (cont'd)
“START” “REPEAT” “1988/2025” GAAP to Non-GAAP Reconciliations (cont'd) In millions; unaudited Q1'25 Q4'25 Q1'26 Cash Flows Cash flow provided by (used in) operating activities (131) 94 488 Purchases of property, plant and equipment, net (67) (45) (50) Free Cash Flow $(198) $49 $438 Activity related
Slide 17: GAAP to Non-GAAP Reconciliations (cont'd)
“START” “REPEAT” “1988/2025” GAAP to Non-GAAP Reconciliations (cont'd) In millions; unaudited Q1'25 Q4'25 Q1'26 GAAP Net Income (loss) $211 $(23) $112 Interest and other expense, net 24 36 52 Income tax expense 56 5 12 Depreciation and amortization 54 36 36 EBITDA $345 $54 $212 Stock-based compensat
Slide 18: GAAP to Non-GAAP Reconciliations (cont'd)
“START” “REPEAT” “1988/2025” GAAP to Non-GAAP Reconciliations (cont'd) FOOTNOTES This presentation contains the following financial measures that are not in accordance with U.S. generally accepted accountin g principles (“GAAP”): Non-GAAP gross profit; Non-GAAP operating expenses; Non-GAAP operating
Slide 19: GAAP to Non-GAAP Reconciliations (cont'd)
“START” “REPEAT” “1988/2025” GAAP to Non-GAAP Reconciliations (cont'd) Loss on business divestiture. In connection with the Company’s strategic decision to outsource the manufacturing of certain components and assemblies, on September 28, 2024, the Company completed the sale of 80% of its equity int