SanDisk Posts 97% Sequential Revenue Gain, 78.4% Margin and $11B Deals
SNDK•SanDisk posted $5.95 billion revenue, up 97% sequentially, and expanded gross margins to 78.4%, driven by AI-related data-center storage demand. The company secured over $11 billion in multiyear agreements covering more than a third of fiscal 2027 output, while its shares rallied 3.8% after Apple warned of surging memory costs.
1. Financial Results
SanDisk reported revenue of $5.95 billion for the latest quarter, up 97% sequentially, with gross margins at 78.4%. Data-center sales jumped 233% quarter-over-quarter as AI workloads drove demand for high-capacity flash storage.
2. Multiyear Supply Agreements
The company has secured over $11 billion in multiyear agreements covering more than one-third of its projected output for fiscal 2027, providing revenue visibility and capacity utilization assurances through long-term commitments.
3. Market Reaction to Apple Cost Warning
Shares of SanDisk rallied 3.8% following a warning from Apple’s CEO that memory cost increases are unsustainable, reinforcing expectations for sustained pricing power across the memory-chip sector.
