SanDisk Corporation (NASDAQ: SNDK) shares plunged nearly 9% to approximately $1,216 in Friday’s premarket trading despite reporting stronger-than-expected fiscal first-quarter earnings and issuing an upbeat outlook.
The decline came amid concerns about slowing NAND flash memory price increases and the sustainability of the chipmaker’s unusually high profit margins.
The premarket selloff followed a 5.32% decline during Thursday’s regular session, when SanDisk closed at $1,330.05 before releasing its financial results after the closing bell.
SanDisk Revenue Growth Slows Despite Earnings Beat
SanDisk reported fiscal first-quarter 2027 revenue of $11.03 billion, up 378% year over year and above analysts’ expectations of approximately $10.7 billion. Adjusted earnings reached $49.51 per share, exceeding the consensus estimate of $47.15.
However, sequential revenue growth slowed to 23% from 51% in the preceding quarter, even as sales and earnings exceeded forecasts.
The composition of revenue growth also changed. Higher shipment volumes accounted for approximately 60% of the sequential increase, while higher pricing contributed 40%. In the previous quarter, pricing had generated roughly two-thirds of revenue growth, with volumes accounting for the remainder.
Chief Financial Officer Luis Visoso said during Thursday’s earnings call that SanDisk expected modest additional pricing increases in the second quarter and throughout fiscal 2027.
Consumer revenue fell 29% sequentially to $397 million, which management attributed to the market adjusting to higher prices. Meanwhile, data-center revenue climbed 61% to $4.80 billion, accounting for approximately 43.5% of total quarterly sales. Chief Executive Officer David Goeckeler cited growing demand for the company’s products as a driver of its data-center expansion.
Adjusted gross margin rose to 85.1% from 84.6% in the preceding quarter, supported by higher shipment volumes and pricing.
For fiscal second quarter 2027, SanDisk forecasts revenue between $12.2 billion and $12.6 billion, adjusted earnings of $55 to $57 per share, and adjusted gross margins of 84.5% to 85.5%.
Morningstar Warns of NAND Pricing Risks Despite Strong Data-Center Sales
Morningstar lowered its fair value estimate for SanDisk to $870 from $1,000 in a Friday research note, warning that NAND pricing growth was slowing earlier and faster than the firm had anticipated.
The research firm said elevated memory prices continued to support SanDisk’s financial performance but maintained that another industry downturn could follow the current pricing cycle.
Morningstar expects memory manufacturers to expand production capacity between 2027 and 2029, potentially increasing supply enough to push prices lower. The firm also questioned whether long-term customer agreements would fully protect manufacturers during a downturn, arguing that customers could seek to renegotiate contracts if market prices fall substantially.
SanDisk Stock Split and Share Performance
SanDisk also announced an eight-for-one forward stock split alongside its earnings results. The second-quarter adjusted earnings forecast is expressed on a pre-stock-split basis.
Shareholders of record on November 9 will receive seven additional shares for each share held, with distribution scheduled for November 19 and split-adjusted trading expected to begin on November 20, 2026.
The split will increase the number of outstanding shares without changing SanDisk’s overall market capitalization or shareholders’ proportional ownership.
Despite the latest decline, SanDisk had gained approximately 460% year to date through Thursday. Friday’s indicated premarket price placed the shares about 13.4% below Wednesday’s closing level of $1,404.77 and roughly 48% below their 52-week high of $2,354.39.
Separately, SanDisk Tokenized bStocks (SNDKB) was trading at $1,220.30, down 11% over the preceding 24 hours, according to CoinMarketCap. The tokenized instrument trades separately from SanDisk’s Nasdaq-listed shares, and its 24-hour percentage change is measured over a different period.