Sandisk Corporation

Excellent financial beat + strong cash return (good) - Revenue: $11.0B, +23% QoQ and +378% YoY; above guidance ($10.3B–$10.8B). - Profitability: Non-GAAP gross margin 85.1% (vs 84.6% prior quarter), Non-GAAP EPS $49.51 (vs $39.25 prior quarter) above guidance ($44–$46 pre-split basis implied in call). - Cash flow: Adjusted free cash flow $5.7B (~52% FCF margin); cash from operations $6.4B. - Capital returns: $5.0B share repurchases during the quarter (3.2M shares). Company reiterated intent to return 100% of excess cash.

Data center is the growth engine; mix is shifting structurally (opportunity) - Data center revenue: $4.8B, +61% QoQ and outpacing estimated market growth. - Management estimates data center has grown from ~20% of industry bits earlier in the decade to ~50% today—a structural shift benefiting NAND economics. - Key driver claim: improved NAND performance/density and AI workload refinements are making NAND more central to inference (especially KV cache / persistent context).

Guidance for next quarter + long-cycle demand visibility via NBMs (forecast) - Q2 FY2027 outlook: Revenue $12.2B–$12.6B; Non-GAAP GM 84.5%–85.5%. - Non-GAAP EPS (pre-split): $55–$57 (assumes 151M fully diluted shares). - Calendar year 2027 expectations (context): - Data center expected to be >55% of the market, with bit demand ~+40% YoY, enabled by AI-driven capex. - Company states NBM pipeline exceeds supply through end of decade (through ~2030+), implying stronger planning visibility. - NBM execution: closed 2 NBM deals (before last call), continuing to expect more NBMs over coming quarters as they allocate the remaining portfolio.