If you want proof that AI is reshaping the memory business, look at Sandisk’s income statement.
The flash storage maker reported fiscal first-quarter revenue of $11.03 billion, up 23% from the previous quarter and 378% from $2.31 billion a year earlier. GAAP net income reached $8.1 billion, or $52.60 a diluted share, compared with $112 million a year ago. Gross margin was 85%, up from 29.8%.
Data center is the engine
Data center revenue was $4.8 billion, up 61% in a single quarter from $2.98 billion, and up from just $269 million a year earlier. Edge revenue rose 7% sequentially to $5.83 billion. Consumer was the weak spot, falling 29% from the prior quarter to $397 million.
“We have started fiscal year 2027 with another quarter of strong performance, with robust and growing demand for our products driving outpaced growth in our data center business,” said CEO David Goeckeler.
More growth expected, and a split
Sandisk forecast second-quarter revenue of $12.2 billion to $12.6 billion, with gross margin of about 84.5% to 85.5% on a non-GAAP basis. It returned $5 billion to stockholders through buybacks in the quarter.
The company also announced an eight-for-one forward stock split to make shares more accessible, including to employees through its stock purchase plan. Stockholders of record on November 9 will receive seven extra shares for each one held, and split-adjusted trading is expected to start on November 20, 2026.
The flip side
Strong memory demand from AI data centers has a cost for everyone else. In the same week, Intel warned of a PC slowdown, and UBS analyst Timothy Arcuri told clients he sees “no relief in sight for memory pricing/supply,” CNBC reported.
Why it matters
Storage has become a strategic bottleneck for AI. When a flash supplier runs at 85% gross margin, buyers lose leverage, and IT budgets for servers, storage and endpoints feel it.
For storage, backup and infrastructure vendors, this is a moment to help customers plan around higher prices with tiering, data reduction and smarter capacity planning. Messaging that helps buyers do more with less storage will resonate with IT leaders right now.
Sources: Sandisk, CNBC. Written by the xRapid Media LLP team.
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