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Sandisk

SNDK · Nasdaq

Revenue rose 378% on almost 10% more bits

Exabytes sold rose almost 10% while revenue rose 378% to $11.0B, so a higher price per gigabyte, not volume, produced nearly all the growth.

Q1 FY2027, the quarter to Oct 2, 2026 (Sandisk's fiscal 2027 ends in June 2027) · 10-Q filed Oct 30, 2026

Q1 FY2027 · revenue
$11.0B+377.9% on the year
Operating margin
79.6%
Net income
$8.1B
Free cash flow, quarter
$6.3B

Largest source of revenue: Edge, 52.9% of the total.

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Where Sandisk's money goes

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Key insights · Q1 FY2027
  1. 01

    Revenue rose 378% on almost 10% more bits

    Exabytes sold rose almost 10% while revenue rose 378% to $11.0B, so a higher price per gigabyte, not volume, produced nearly all the growth.

    Why it matters

    Revenue rose to $11.0B from $2.3B a year earlier while cost of revenue rose 2.0%, to $1.65B from $1.62B. Cost of revenue fell to 15.0% of revenue from 70.2%, and gross margin rose to 85.0% from 29.8%. The filing attributes the gain to "a higher revenue per gigabyte and an increase in exabytes sold."1

    Operating expenses rose 17.0% to $598M, far slower than gross profit, and fell to 5.4% of revenue from 22.1%. Operating income was $8.78B, a 79.6% margin, against $176M a year earlier.1

    The same structure ran the other way not long ago. Three fiscal years before the latest one, gross profit was $430M on revenue of $6.1B, a 7.1% gross margin, with an operating loss of $2,035M.1

    AnalysisAnalysis: the year-earlier quarter ran fourteen weeks against thirteen now, so the year-on-year growth rates, if anything, understate the change in the weekly run rate.

  2. 02

    Bits moved from retail shelves to datacenters

    Datacenter exabytes rose almost 330% while Consumer exabytes fell more than 70%, as the company chose where its limited supply went.

    Why it matters

    Datacenter revenue rose 1,685% to $4.8B on almost 330% more exabytes and almost 320% higher revenue per gigabyte. Its share of revenue rose 31.9 points to 43.5%.1

    Edge, still the largest end market at $5.8B or 52.9% of revenue, grew 320% on price alone: revenue per gigabyte rose more than 450% while exabytes sold fell 20%.1

    Consumer revenue fell 39% to $397M, now 3.6% of revenue, even though its revenue per gigabyte rose more than 110%. The filing describes "strategic decisions about how we allocate products to customers across the end markets we serve."1

    AnalysisAnalysis: when output is limited, each gigabyte goes where it earns most and where contracts commit it. The filing ties Consumer's fall to lower sales, and its allocation language suggests supply was steered elsewhere; it does not report retail demand directly.

  3. 03

    Cash trailed profit as inventory piled up

    Operating cash flow was $6.4B, 78.5% of net income of $8.1B, as days in inventory rose to 166 from 115 a year earlier.

    Why it matters

    Days in inventory rose to 166 from 115 and the cash conversion cycle lengthened to 149 days from 113. The filing puts the inventory increase down to "inventory builds to meet demand."1

    The quarter before showed the opposite pattern: operating cash flow of $7.1B against net income of $6.9B. This quarter, net income rose to $8.1B while operating cash flow fell to $6.4B.1

    Net income includes a $513M gain on the company's stake in Nanya Technology, 6.3% of net income, a change in market value rather than cash received. Free cash flow was $6.3B, 57.2% of revenue.1

    AnalysisAnalysis: inventory built while prices are rising is worth more if they hold and carries write-down risk if they turn. Whether operating cash flow catches up with net income over the next quarters is a direct check on the quality of these earnings.

  4. 04

    One quarter earned 71% of last year's operating profit

    Operating income of $8.78B equals 70.9% of the $12.4B earned in the whole fiscal year that ended in July, a year that itself followed losses.

    Why it matters

    Revenue of $11.0B in the quarter is more than the $7.4B reported for the whole fiscal year before last, a year with an operating loss of $1.4B.1

    Against the prior quarter, revenue rose to $11.0B from $9.0B and operating income to $8.78B from $7.04B, so the climb had not levelled off by the end of this period.1

    AnalysisAnalysis: the speed of the turn is the point. A business that lost money on a full year's revenue of $7.4B now keeps most of each quarter's revenue as operating income, which shows how much of the result rides on the price cycle rather than on a larger operation.

Sources

  1. 1.Sandisk 10-Q for the period to 2026-10-02 (the filing), Oct 30, 2026, read Nov 2, 2026

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Business performance

Growth, profit and margin

Revenue went from $6.1B in FY2023 to $20.2B in FY2026, the operating margin from -33.4% to 61.2%, over 3 years.

  • Revenue$20.2B
  • Operating income$12.4B
  • Operating margin61.2%
Period
Q1 FY2027
Revenue
$11.0B
Operating income
$8.8B
Operating margin
79.6%
Net income
$8.1B
Free cash flow
$6.3B
Business performance

Does the profit turn into cash?

Q1 FY2027: free cash flow of $6.3B against net income of $8.1B in the quarter.

  • Operating cash flow$11.7B
  • Capital expenditure$177.0M
  • Free cash flow$11.5B
  • Net income$11.4B

Capital expenditure is drawn below the axis as cash out. Cash conversion is operating cash flow over net income, shown in the tooltip for years with a profit.

Financial data and sources

How the revenue mix has shifted

Each breakdown the filing reports, as shares of revenue, for every period it restates.

Geographic Information and Concentrations of Risk - Schedule of Disaggregation of Revenue (Details). The filing restates this breakdown for 1 period.

Click a member to isolate it across the years shown.

The figures

Margins, cash and growth for the period, each with what it was computed from.

Gross margin
85.0%
Source10-Q, Derived from Gross profit and Revenue, net in the 10-Q filed 2026-10-30
Operating margin
79.6%
Source10-Q, Derived from Operating income and Revenue, net in the 10-Q filed 2026-10-30
Net margin
73.4%
Source10-Q, Derived from Net income and Revenue, net in the 10-Q filed 2026-10-30
Free cash flow, quarter
$6.3B
Source10-Q, Derived from the prior period in the history in the 10-Q filed 2026-10-30
Free cash flow margin, quarter
57.2%
Source10-Q, Derived from the prior period in the history in the 10-Q filed 2026-10-30
Cash conversion, quarter
0.79x
Source10-Q, Derived from the prior period in the history in the 10-Q filed 2026-10-30
Capital spending, quarter
0.5%
Source10-Q, Derived from the prior period in the history in the 10-Q filed 2026-10-30
Revenue growth
+377.9%
From the record's own history, against the prior year.

Where revenue comes from

Every breakdown the filing reports for the period, with each item's share.

Revenue streams

Edge$5.8B52.9%
Datacenter$4.8B43.5%
Consumer$397.0M3.6%

Source10-Q, us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, as reported in the 10-Q filed 2026-10-30

Geographic markets

Asia$7.2B65.4%
Americas$3.3B29.5%
Europe, Middle East and Africa$558.0M5.1%

Source10-Q, us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, as reported in the 10-Q filed 2026-10-30

What it costs

The cost lines beneath operating income, each as a share of revenue, then the operating result.

Costs are reported by function: what it cost to make what was sold, then the expenses of selling, developing and administering.

Cost lineQ1 FY2027Of revenueSource
Cost of revenue$1.7B15.0%Source10-Q, us-gaap:CostOfGoodsAndServicesSold, as reported in the 10-Q filed 2026-10-30
Operating income$8.8B79.6%Source10-Q, us-gaap:OperatingIncomeLoss, as reported in the 10-Q filed 2026-10-30

Operating figures the company states

From the text of the filing rather than its statements, each with the sentence that states it.

Cash conversion cycle
149 days
As of Oct 2, 2026
View source
Cash conversion cycle 149 113
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, 10-Q filed Oct 30, 2026
Consumer exabytes sold, decrease from a year earlier
70.0%
As of Oct 2, 2026
View source
Total products sold decreased by more than 70% on an exabyte basis
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, 10-Q filed Oct 30, 2026
Consumer revenue per gigabyte, increase from a year earlier
110.0%
As of Oct 2, 2026
View source
partially offset by an increase of more than 110% in r evenue per gigabyte.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, 10-Q filed Oct 30, 2026
Datacenter exabytes sold, increase from a year earlier
330.0%
As of Oct 2, 2026
View source
Total products sold increased by almost 330% on an exabyte basis.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, 10-Q filed Oct 30, 2026
Datacenter revenue per gigabyte, increase from a year earlier
320.0%
As of Oct 2, 2026
View source
Revenue per gigabyte increased by almost 320%.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, 10-Q filed Oct 30, 2026
Days in inventory
166 days
As of Oct 2, 2026
View source
Days in inventory 166 115
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, 10-Q filed Oct 30, 2026
Edge exabytes sold, decrease from a year earlier
20.0%
As of Oct 2, 2026
View source
Revenue per gigabyte increased by more than 450%, which was partially offset by a 20% decrease in products sold on an exabyte basis.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, 10-Q filed Oct 30, 2026
Edge revenue per gigabyte, increase from a year earlier
450.0%
As of Oct 2, 2026
View source
Revenue per gigabyte increased by more than 450%
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, 10-Q filed Oct 30, 2026
Exabytes sold, increase from a year earlier
10.0%
As of Oct 2, 2026
View source
Total products sold increased by almost 10% on an exabyte basis.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, 10-Q filed Oct 30, 2026
Revenue share of each of the two largest customers
12.0%
As of Oct 2, 2026
View source
For the three months ended October 2, 2026, two separate customers accounted for more than 10% of the Company's net revenue, amounting to 12 % each.
Sales incentive and marketing programs, share of gross revenue
9.0%
As of Oct 2, 2026
View source
For the three months ended October 2, 2026 and October 3, 2025, these programs represented 9% and 16%, respectively, of gross revenues.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, 10-Q filed Oct 30, 2026

The statements, as filed

The income statement, cash flow statement and balance sheet in the company's own order and words. Every line links to the filing.

Income statement22 lines, as presented in the 10-Q
LineQ1 FY2027A year earlierChangeOf revenueSource
Income Statement
Revenue, net$11.03B$2.31B+378%100%Source10-Q, us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, as reported in the 10-Q filed 2026-10-30
Cost of revenue$1.65B$1.62B+2.0%15.0%Source10-Q, us-gaap:CostOfGoodsAndServicesSold, as reported in the 10-Q filed 2026-10-30
Gross profit$9.38B$687.0M+1,265%85.0%Source10-Q, us-gaap:GrossProfit, as reported in the 10-Q filed 2026-10-30
Operating expenses:
Research and development$384.0M$316.0M+22%3.5%Source10-Q, us-gaap:ResearchAndDevelopmentExpense, as reported in the 10-Q filed 2026-10-30
Selling, general and administrative$214.0M$179.0M+20%1.9%Source10-Q, us-gaap:SellingGeneralAndAdministrativeExpense, as reported in the 10-Q filed 2026-10-30
Business separation costs$0$9.0M0.0%Source10-Q, sndk:BusinessSeparationCosts, as reported in the 10-Q filed 2026-10-30
Employee termination and other$0-$3.0M0.0%Source10-Q, us-gaap:RestructuringCharges, as reported in the 10-Q filed 2026-10-30
Loss on business divestiture (shown as a deduction)($0)-$10.0M0.0%Source10-Q, us-gaap:GainLossOnSaleOfBusiness, as reported in the 10-Q filed 2026-10-30
Total operating expenses$598.0M$511.0M+17%5.4%Source10-Q, us-gaap:OperatingExpenses, as reported in the 10-Q filed 2026-10-30
Income Statement
Operating income$8.78B$176.0M+4,889%79.6%Source10-Q, us-gaap:OperatingIncomeLoss, as reported in the 10-Q filed 2026-10-30
Interest and other income (expense), net:
Gain on equity securities, net$513.0M$04.7%Source10-Q, us-gaap:EquitySecuritiesFvNiUnrealizedGainLoss, as reported in the 10-Q filed 2026-10-30
Interest income$51.0M$16.0M+219%0.5%Source10-Q, us-gaap:InvestmentIncomeInterest, as reported in the 10-Q filed 2026-10-30
Interest expense (shown as a deduction)($2.0M)$40.0M-95%0.0%Source10-Q, us-gaap:InterestExpenseNonoperating, as reported in the 10-Q filed 2026-10-30
Other income (expense), net-$23.0M-$28.0M-18%0.2%Source10-Q, us-gaap:OtherNonoperatingIncomeExpense, as reported in the 10-Q filed 2026-10-30
Total interest and other income (expense), net$539.0M-$52.0M4.9%Source10-Q, us-gaap:NonoperatingIncomeExpense, as reported in the 10-Q filed 2026-10-30
Income Statement
Income before taxes$9.32B$124.0M+7,415%84.5%Source10-Q, us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest, as reported in the 10-Q filed 2026-10-30
Income tax expense$1.22B$12.0M+10,050%11.0%Source10-Q, us-gaap:IncomeTaxExpenseBenefit, as reported in the 10-Q filed 2026-10-30
Net income$8.10B$112.0M+7,133%73.4%Source10-Q, us-gaap:NetIncomeLoss, as reported in the 10-Q filed 2026-10-30
Net income per common share:
Basic (in dollars per share)$55$1+7,106%0.0%Source10-Q, us-gaap:EarningsPerShareBasic, as reported in the 10-Q filed 2026-10-30
Diluted (in dollars per share)$53$1+6,913%0.0%Source10-Q, us-gaap:EarningsPerShareDiluted, as reported in the 10-Q filed 2026-10-30
Weighted average shares outstanding:
Basic (in shares)146,000,000146,000,0000.0%Source10-Q, us-gaap:WeightedAverageNumberOfSharesOutstandingBasic, as reported in the 10-Q filed 2026-10-30
Diluted (in shares)154,000,000149,000,000+3.4%Source10-Q, us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding, as reported in the 10-Q filed 2026-10-30
Cash flow statement40 lines, as presented in the 10-Q

Year to date, as a quarterly filing reports it.

LineQ1 FY2027A year earlierChangeSource
Cash flows from operating activities
Net income$8.10B$112.0M+7,133%Source10-Q, us-gaap:NetIncomeLoss, as reported in the 10-Q filed 2026-10-30
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization$43.0M$36.0M+19%Source10-Q, us-gaap:DepreciationAndAmortization, as reported in the 10-Q filed 2026-10-30
Stock-based compensation$91.0M$53.0M+72%Source10-Q, us-gaap:ShareBasedCompensation, as reported in the 10-Q filed 2026-10-30
Deferred income taxes-$20.0M$3.0MSource10-Q, us-gaap:DeferredIncomeTaxExpenseBenefit, as reported in the 10-Q filed 2026-10-30
Gain on equity securities, net (shown as a deduction)($513.0M)$0Source10-Q, us-gaap:EquitySecuritiesFvNiUnrealizedGainLoss, as reported in the 10-Q filed 2026-10-30
Unrealized foreign exchange (gain) loss (shown as a deduction)($15.0M)-$1.0MSource10-Q, us-gaap:ForeignCurrencyTransactionGainLossUnrealized, as reported in the 10-Q filed 2026-10-30
Loss on business divestiture (shown as a deduction)($0)-$10.0MSource10-Q, us-gaap:GainLossOnSaleOfBusiness, as reported in the 10-Q filed 2026-10-30
Amortization of debt issuance costs and discounts$1.0M$2.0M-50%Source10-Q, us-gaap:AmortizationOfFinancingCostsAndDiscounts, as reported in the 10-Q filed 2026-10-30
Equity loss in investees, net of dividends received (shown as a deduction)(-$18.0M)-$27.0M-33%Source10-Q, us-gaap:IncomeLossFromEquityMethodInvestments, as reported in the 10-Q filed 2026-10-30
Other non-cash operating activities, net$4.0M-$6.0MSource10-Q, us-gaap:OtherOperatingActivitiesCashFlowStatement, as reported in the 10-Q filed 2026-10-30
Changes in:
Accounts receivable, net (shown as a deduction)($1.88B)$125.0M+1,402%Source10-Q, us-gaap:IncreaseDecreaseInAccountsReceivable, as reported in the 10-Q filed 2026-10-30
Inventories (shown as a deduction)($318.0M)-$172.0MSource10-Q, us-gaap:IncreaseDecreaseInInventories, as reported in the 10-Q filed 2026-10-30
Accounts payable$197.0M$30.0M+557%Source10-Q, us-gaap:IncreaseDecreaseInAccountsPayableTrade, as reported in the 10-Q filed 2026-10-30
Accounts payable to related parties$89.0M$86.0M+3.5%Source10-Q, us-gaap:IncreaseDecreaseInAccountsPayableRelatedParties, as reported in the 10-Q filed 2026-10-30
Accrued expenses-$24.0M-$65.0M-63%Source10-Q, us-gaap:IncreaseDecreaseInAccruedLiabilities, as reported in the 10-Q filed 2026-10-30
Accrued compensation-$215.0M$35.0MSource10-Q, us-gaap:IncreaseDecreaseInEmployeeRelatedLiabilities, as reported in the 10-Q filed 2026-10-30
Refund liability$97.0M$25.0M+288%Source10-Q, sndk:IncreaseDecreaseInContractWithCustomerRefundLiability, as reported in the 10-Q filed 2026-10-30
Contract liabilities$287.0M-$3.0MSource10-Q, us-gaap:IncreaseDecreaseInContractWithCustomerLiability, as reported in the 10-Q filed 2026-10-30
Income taxes payable$403.0M-$40.0MSource10-Q, us-gaap:IncreaseDecreaseInAccruedIncomeTaxesPayable, as reported in the 10-Q filed 2026-10-30
Other assets and liabilities, net (shown as a deduction)(-$14.0M)-$135.0M-90%Source10-Q, us-gaap:IncreaseDecreaseInOtherOperatingCapitalNet, as reported in the 10-Q filed 2026-10-30
Cash flows from operating activities
Net cash provided by operating activities$6.36B$488.0M+1,204%Source10-Q, us-gaap:NetCashProvidedByUsedInOperatingActivities, as reported in the 10-Q filed 2026-10-30
Cash flows from investing activities
Purchases of short-term investments (shown as a deduction)($70.0M)$0Source10-Q, us-gaap:PaymentsToAcquireShortTermInvestments, as reported in the 10-Q filed 2026-10-30
Purchases of property, plant and equipment (shown as a deduction)($54.0M)$50.0M+8.0%Source10-Q, us-gaap:PaymentsToAcquirePropertyPlantAndEquipment, as reported in the 10-Q filed 2026-10-30
Proceeds from dispositions of business$34.0M$25.0M+36%Source10-Q, us-gaap:ProceedsFromDivestitureOfBusinesses, as reported in the 10-Q filed 2026-10-30
Notes receivable issuances to Flash Ventures (shown as a deduction)($151.0M)$87.0M+74%Source10-Q, us-gaap:PaymentsToAcquireNotesReceivable, as reported in the 10-Q filed 2026-10-30
Notes receivable proceeds from Flash Ventures$3.0M$97.0M-97%Source10-Q, us-gaap:ProceedsFromCollectionOfNotesReceivable, as reported in the 10-Q filed 2026-10-30
Net cash used in investing activities-$238.0M-$15.0M+1,487%Source10-Q, us-gaap:NetCashProvidedByUsedInInvestingActivities, as reported in the 10-Q filed 2026-10-30
Cash flows from financing activities
Taxes paid on vested stock awards under employee stock plans (shown as a deduction)($755.0M)$15.0M+4,933%Source10-Q, us-gaap:PaymentsRelatedToTaxWithholdingForShareBasedCompensation, as reported in the 10-Q filed 2026-10-30
Repurchases of common stock (shown as a deduction)($5.00B)$0Source10-Q, us-gaap:PaymentsForRepurchaseOfCommonStock, as reported in the 10-Q filed 2026-10-30
Repayment of debt (shown as a deduction)($0)$500.0MSource10-Q, us-gaap:RepaymentsOfDebt, as reported in the 10-Q filed 2026-10-30
Net cash used in financing activities-$5.76B-$515.0M+1,017%Source10-Q, us-gaap:NetCashProvidedByUsedInFinancingActivities, as reported in the 10-Q filed 2026-10-30
Statement of Cash Flows
Effect of exchange rate changes on cash$4.0M$3.0M+33%Source10-Q, us-gaap:EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents, as reported in the 10-Q filed 2026-10-30
Net increase (decrease) in cash and cash equivalents$374.0M-$39.0MSource10-Q, us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect, as reported in the 10-Q filed 2026-10-30
Cash and cash equivalents, beginning of year$4.76BSource10-Q, us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents, as reported in the 10-Q filed 2026-10-30
Cash and cash equivalents, end of period$5.14B$1.44B+256%Source10-Q, us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents, as reported in the 10-Q filed 2026-10-30
Supplemental disclosure of cash flow information:
Cash paid for interest$2.0M$48.0M-96%Source10-Q, us-gaap:InterestPaidNet, as reported in the 10-Q filed 2026-10-30
Cash received for interest$51.0M$16.0M+219%Source10-Q, us-gaap:ProceedsFromInterestReceived, as reported in the 10-Q filed 2026-10-30
Cash paid for income taxes$865.0M$39.0M+2,118%Source10-Q, us-gaap:IncomeTaxesPaidNet, as reported in the 10-Q filed 2026-10-30
Accrued purchases of long-lived assets$20.0M$0Source10-Q, us-gaap:CapitalExpendituresIncurredButNotYetPaid, as reported in the 10-Q filed 2026-10-30
Unpaid taxes relating to vested stock awards and repurchases of common stock$47.0M$0Source10-Q, us-gaap:ShareRepurchaseProgramExciseTaxPayable, as reported in the 10-Q filed 2026-10-30
Balance sheet34 lines, as presented in the 10-Q
LineQ1 FY2027A year earlierChangeSource
Current assets:
Cash and cash equivalents$5.14BSource10-Q, us-gaap:CashAndCashEquivalentsAtCarryingValue, as reported in the 10-Q filed 2026-10-30
Accounts receivable, net$6.59BSource10-Q, us-gaap:AccountsReceivableNetCurrent, as reported in the 10-Q filed 2026-10-30
Inventories$3.02BSource10-Q, us-gaap:InventoryNet, as reported in the 10-Q filed 2026-10-30
Income tax receivable$41.0MSource10-Q, us-gaap:IncomeTaxesReceivable, as reported in the 10-Q filed 2026-10-30
Other current assets$574.0MSource10-Q, us-gaap:OtherAssetsCurrent, as reported in the 10-Q filed 2026-10-30
Total current assets$15.35BSource10-Q, us-gaap:AssetsCurrent, as reported in the 10-Q filed 2026-10-30
Non-current assets:
Marketable equity securities$2.29BSource10-Q, us-gaap:EquitySecuritiesFVNINoncurrent, as reported in the 10-Q filed 2026-10-30
Property, plant and equipment, net$705.0MSource10-Q, us-gaap:PropertyPlantAndEquipmentNet, as reported in the 10-Q filed 2026-10-30
Notes receivable and investments in Flash Ventures$827.0MSource10-Q, sndk:NotesReceivableAndInvestmentsInRelatedPartiesNoncurrent, as reported in the 10-Q filed 2026-10-30
Goodwill$5.00BSource10-Q, us-gaap:Goodwill, as reported in the 10-Q filed 2026-10-30
Income tax receivable, non-current$186.0MSource10-Q, us-gaap:IncomeTaxesReceivableNoncurrent, as reported in the 10-Q filed 2026-10-30
Deferred tax assets$69.0MSource10-Q, us-gaap:DeferredIncomeTaxAssetsNet, as reported in the 10-Q filed 2026-10-30
Other non-current assets$1.37BSource10-Q, us-gaap:OtherAssetsNoncurrent, as reported in the 10-Q filed 2026-10-30
Assets
Total assets$25.79BSource10-Q, us-gaap:Assets, as reported in the 10-Q filed 2026-10-30
Current liabilities:
Nonrelated Party$736.0MSource10-Q, us-gaap:AccountsPayableCurrent [us-gaap:NonrelatedPartyMember], as reported in the 10-Q filed 2026-10-30
Related Party$549.0MSource10-Q, us-gaap:AccountsPayableCurrent [us-gaap:RelatedPartyMember], as reported in the 10-Q filed 2026-10-30
Accrued expenses$329.0MSource10-Q, us-gaap:AccruedLiabilitiesCurrent, as reported in the 10-Q filed 2026-10-30
Accrued compensation$447.0MSource10-Q, us-gaap:EmployeeRelatedLiabilitiesCurrent, as reported in the 10-Q filed 2026-10-30
Refund liabilities$1.60BSource10-Q, us-gaap:ContractWithCustomerRefundLiabilityCurrent, as reported in the 10-Q filed 2026-10-30
Contract liabilities$777.0MSource10-Q, us-gaap:ContractWithCustomerLiabilityCurrent, as reported in the 10-Q filed 2026-10-30
Income tax payable, current$1.52BSource10-Q, us-gaap:AccruedIncomeTaxesCurrent, as reported in the 10-Q filed 2026-10-30
Total current liabilities$5.95BSource10-Q, us-gaap:LiabilitiesCurrent, as reported in the 10-Q filed 2026-10-30
Non-current liabilities:
Non-current contract liabilities$752.0MSource10-Q, us-gaap:ContractWithCustomerLiabilityNoncurrent, as reported in the 10-Q filed 2026-10-30
Deferred tax liabilities$144.0MSource10-Q, us-gaap:DeferredIncomeTaxLiabilitiesNet, as reported in the 10-Q filed 2026-10-30
Income tax payable, non-current$431.0MSource10-Q, us-gaap:AccruedIncomeTaxesNoncurrent, as reported in the 10-Q filed 2026-10-30
Other liabilities$381.0MSource10-Q, us-gaap:OtherLiabilitiesNoncurrent, as reported in the 10-Q filed 2026-10-30
Liabilities:
Total liabilities$7.66BSource10-Q, us-gaap:Liabilities, as reported in the 10-Q filed 2026-10-30
Shareholders’ equity:
Common stock, $0.01 par value; authorized — 450 shares; issued — 150 shares and outstanding — 144 shares (as of July 3, 2026 issued — 149000000 shares and outstanding — 146000000 shares)$2.0MSource10-Q, us-gaap:CommonStockValue, as reported in the 10-Q filed 2026-10-30
Treasury stock (shown as a deduction)($9.58B)Source10-Q, us-gaap:TreasuryStockCommonValue, as reported in the 10-Q filed 2026-10-30
Additional paid-in capital$10.21BSource10-Q, us-gaap:AdditionalPaidInCapital, as reported in the 10-Q filed 2026-10-30
Accumulated other comprehensive loss-$248.0MSource10-Q, us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax, as reported in the 10-Q filed 2026-10-30
Retained earnings$17.75BSource10-Q, us-gaap:RetainedEarningsAccumulatedDeficit, as reported in the 10-Q filed 2026-10-30
Total shareholders’ equity$18.13B$9.38B+93%Source10-Q, us-gaap:StockholdersEquity, as reported in the 10-Q filed 2026-10-30
Liabilities and shareholders’ equity
Total liabilities and shareholders’ equity$25.79BSource10-Q, us-gaap:LiabilitiesAndStockholdersEquity, as reported in the 10-Q filed 2026-10-30

About this data

Source
Sandisk 10-Q, accession 0001628280-26-068601, filed Oct 30, 2026, read on Nov 2, 2026.
History
From the SEC's XBRL company facts, the value from the latest filing that stated each period.
Reading
Paragraphs marked Analysis are CXProWealth's reading; everything else is the filing's own numbers and words, or a cited source.
Version
methodology business-lens-1.0 · schema 1.2.0 · run business-lens-2026-11-02
Edge and risks

What holds Sandisk's model up, and what could bend it

Competitive edge

  • Shared fabs keep reported capital spending small

    Capital spending was $54M, 0.49% of revenue, against free cash flow of $6.3B, largely because the wafer fabs sit in joint ventures with Kioxia.

    The detail

    The company procures "substantially all of its flash-based memory wafers" from Flash Ventures, three joint ventures with Kioxia, and its share generally equals half their output. For the fiscal year that ended in July, capital spending was $177M against free cash flow of $11.5B.1

    AnalysisAnalysis: the low capital line is a trade. The filing states that Sandisk pays half the ventures' fixed costs whatever it buys, funds its share of their investment when their own cash falls short, and lends to them, so the capital cost reaches its books as wafer costs, loans and prepayments rather than as capital spending.

  • Multi-year contracts commit customers to volume

    Long-term agreements with committed volumes and financial guarantees are becoming Sandisk's main way of selling, and sales incentives fell to 9% of gross revenue from 16%.

    The detail

    Since the second half of the last fiscal year, Sandisk has signed agreements with several Datacenter and Edge customers that commit it to deliver, and them to purchase, stated volumes over multiple years, with fixed and variable pricing backed by financial guarantees. The filing expects them to become its "predominant way of doing business."1

    Price protection and other incentives, recorded as a reduction of gross revenue, took 9% of gross revenue this quarter against 16% a year earlier.1

    AnalysisAnalysis: in a scarce market, buyers trade flexibility for assured supply. The filing says the agreements do not remove demand risk; whether they damp the memory cycle will only show in the first downturn they go through.

What to watch

  • The margin rests on price per gigabyte

    Cost of revenue rose 2.0% while revenue rose 378%, so a fall in price per gigabyte would reach operating income with little cost relief to cushion it.

    The detail

    The filing says its long-term agreements "do not eliminate the risks associated with customer demand, market conditions, or operational execution," and that changes in demand may require higher sales incentives as a share of gross revenue, which reduce net revenue.1

    Trade policy adds a cost-side pressure: most products sold in the US are currently exempt from tariffs, and the filing says losing those exemptions or facing higher tariffs would raise cost of goods sold and could compress margins.1

    AnalysisAnalysis: with cost of revenue at $1.65B against revenue of $11.0B, the cost base is close to fixed in the short run. Price changes pass almost straight through to profit in both directions, as the losses of earlier years showed.

  • Two customers now take 12% of revenue each

    Two customers each accounted for 12% of revenue this quarter, where a year earlier no customer crossed the filing's reporting threshold.

    The detail

    For the quarter, two separate customers each accounted for 12% of net revenue. For the year-earlier quarter, no customer accounted for more than 10% of net revenue.1

    AnalysisAnalysis: concentration rises as volume is contracted with a few large Datacenter and Edge buyers. The contracts carry guarantees, but the loss or renegotiation of one large agreement would now move results more than before.

  • Wafer supply depends on one partner's fabs

    Substantially all wafers come from the Kioxia joint ventures, where Sandisk pays half the fixed costs whatever it buys and guarantees part of their equipment leases.

    The detail

    Sandisk must pay half of Flash Ventures' fixed costs regardless of the output it chooses to purchase, fund its share of their capital investment when their own operating cash flow falls short, and guarantee half the obligations under their equipment leases, which a cancellation event could accelerate.1

    AnalysisAnalysis: these commitments do not shrink with demand. The structure that keeps capital spending small in good years becomes a fixed charge in weak ones, and an operational problem at the shared fabs would reach Sandisk's supply directly.

Sources

  1. 1.Sandisk 10-Q for the period to 2026-10-02 (the filing), Oct 30, 2026, read Nov 2, 2026
Go deeper

Sandisk, further in

Member research, then your own questions on ChatGPT.

What could change the outlook

What Sandisk's numbers depend on from here, read from the filing: the conditions behind this period's margins and growth, and where a change would show first.

  • What the 85.0% gross margin depends on from here

    Which inputs, from price per gigabyte to contract terms and inventory, decide whether this margin structure holds, and which line in the next filings would show a turn first.

  • How much of the profit is turning into cash

    How working capital, the Nanya stake and the Kioxia venture commitments sit between reported net income and the cash the business keeps.

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Questions to start with
  • How much of Sandisk's 79.6% operating margin depends on revenue per gigabyte staying near this quarter's level?
  • Why did Sandisk's Consumer revenue fall 39% while its Datacenter revenue rose 1,685%?
  • Why did Sandisk's operating cash flow trail net income this quarter, and what would bring the two back in line?

Business Lens describes Sandisk from its own filings with the SEC. It is not a view on its shares, a target, or advice to buy, sell or hold anything; figures are as filed and may be restated by the company later. The filing, the dates and the version are under the financial data above.