Key points
- Sandisk sets an 8-for-1 stock split
- Sandisk's data center sales jump again
- What Sandisk's split means for shareholders
Sandisk (SNDK) beat Wall Street's forecasts for its fiscal first quarter on Thursday, October 29, and said it will split its stock 8-for-1, effective November 19. The shares closed down 5.3% at $1,330.05 before the report. They traded between $1,265 and $1,375.25 in the first 45 minutes after the market closed.
Revenue rose 23% from the previous quarter to $11.03 billion, beating the $10.7 billion analysts expected, according to S&P Global Market Intelligence. Adjusted earnings were $49.51 a share, above the $47.15 analysts expected. Under standard accounting, earnings were $52.60 a share.
Sandisk forecast fiscal second-quarter revenue of $12.2 billion to $12.6 billion. The midpoint of that range is above the $12.23 billion analysts expected. It expects adjusted earnings of $55 to $57 a share on a pre-split basis, while analysts expected $53.30.
How the stock split works
Shareholders of record at the close of business on November 9 will receive seven additional shares for each share they hold, according to the release Sandisk filed with the SEC. The new shares will be issued after the market closes on Thursday, November 19. Trading on a split-adjusted basis is expected to begin when the market opens on Friday, November 20.
Thursday's closing price works out to about $166 a share on a split-adjusted basis, by our calculations. Sandisk said its market value and each shareholder's ownership percentage won't change.
Sandisk said the split is meant "to make stock more accessible, including to employees through its employee stock purchase plan." All per-share figures in Thursday's release, including the forecast, are on a pre-split basis.
Data center sales drove the quarter
Sandisk makes NAND flash, the memory chips inside solid-state drives, through its manufacturing joint venture with Kioxia. Sales to data centers rose 61% from the previous quarter to $4.80 billion. A year earlier, that business brought in $269 million.
Revenue from the edge business rose 7% to $5.83 billion. Consumer revenue fell 29% to $397 million.
Chief Executive David Goeckeler said "robust and growing demand for our products" drove "outpaced growth in our data center business."
Gross margin was 85.0% under standard accounting, up from 84.6% in the previous quarter. Net income was $8.10 billion, against $112 million a year earlier.
The results also beat the forecast Sandisk gave in August, when it guided to $10.3 billion to $10.8 billion in revenue and $44 to $46 in adjusted earnings a share.
Sandisk spent $5.0 billion buying back about 3.2 million of its shares during the quarter. Over the past two quarters it has repurchased 6.0 million shares, about 4% of the shares outstanding, the company said.
The stock is up 460% this year
Sandisk shares traded between $1,322 and $1,385.80 during Thursday's regular session. At $1,330.05, the stock is up 460% from its 2025 closing price of $237.38, by our calculations. It is 43.5% below its 52-week high of $2,354.39.
Sandisk was at $1,309.81 at 5 p.m. Eastern, down 1.5% from its close.
