Sandisk sets 8-for-1 split after Q1 beat

Sandisk has announced an 8-for-1 forward stock split alongside fiscal first-quarter 2027 results that exceeded Wall Street expectations. On October 29, 2026, the stock fell 5.32% in regular trading to close at $1,330.05, before weakening further in extended hours. Based on that closing price, the split would mechanically translate to about $166.26 per share once it takes effect, without changing Sandisk’s overall market value or individual ownership percentages.

The company reported revenue of $11.03 billion for the quarter, above the roughly $10.7 billion analysts expected and 23% higher than the prior quarter. Revenue was up 378% from a year earlier. Adjusted earnings came in at $49.51 per share, topping forecasts of $47.15, while GAAP earnings were $52.60 per share.

The 8-for-1 stock split was approved on October 29, 2026, with a record date of November 9. Shareholders of record on that date will receive seven additional shares for each existing share after the market closes on November 19. Trading on a split-adjusted basis is scheduled to begin on November 20 under the existing SNDK ticker.

To accommodate the split, Sandisk is increasing its authorized common shares from 450 million to 3.6 billion through a charter amendment. The split will increase each shareholder’s number of shares eightfold but leaves proportional ownership and market capitalization unchanged by the adjustment itself. Sandisk has said the lower nominal price is intended to make the stock more accessible, including through its employee stock purchase plan.

Management told investors that the demand it is negotiating under long-term supply agreements for NAND flash exceeds the company’s potential supply through the end of the decade. These new business model, or NBM, contracts include customer prepayments and deposits. At its August 2026 Investor Day, Sandisk had eight signed NBMs covering about 50% of fiscal 2027 bits and roughly two-thirds of fiscal 2028 bits, and it closed two additional NBMs in the latest quarter.

Chief Executive David Goeckeler said customers "have underestimated the amount of NAND they need" and that multiple customers are returning for a second round of contracts, while emphasizing that the company still needs to secure full commitments. Management described the current NBM pipeline as exceeding the company’s anticipated supply throughout the end of the decade.

Sandisk’s performance was driven by surging demand from data centers and edge applications. Data-center revenue rose 61% from the previous quarter to $4.80 billion, while edge business revenue increased 7% to $5.83 billion. In contrast, consumer revenue declined 29% sequentially and 39% year over year to $397 million, which the company linked to the market adjusting to higher pricing.

Gross margin reached 85.0% under standard accounting, up from 84.6% a quarter earlier, and net income climbed to $8.10 billion from $112 million a year ago. Sandisk enters the current industry downturn with no debt and reported that half of its fiscal 2027 bits are covered by prepaid contracts. For the fiscal second quarter, it forecast revenue of $12.2 billion to $12.6 billion and adjusted earnings of $55 to $57 per share on a pre-split basis, both above prevailing analyst expectations at the midpoint.

Despite the strong results and bullish demand commentary, investors reacted cautiously. The shares fell 5.32% to $1,330.05 in the October 29 session, traded between $1,322 and $1,385.80 intraday, and were around $1,309.81 at 5 p.m. Eastern, down 1.5% from the close. In after-hours trading later that evening, the stock traded near $1,279.50, about 3.8% below the regular-session close.

Sandisk shares have risen sharply over a longer horizon, with the stock up about 460% from a 2025 closing price of $237.38. The company has also been active in returning capital, spending $5.0 billion to repurchase about 3.2 million shares during the quarter and buying back 6.0 million shares over the past two quarters, equal to roughly 4% of shares outstanding.