Sandisk Shares Plunge Despite Record AI-Driven Revenue Growth

Sandisk shares experienced a double-digit percentage drop following the release of its fiscal 2027 first quarter earnings. The decline occurred despite the company beating Wall Street forecasts for the quarter ending October 2, during which it reported revenue of approximately $11 billion and earnings of $52.60 per share.

Revenue grew 378% year-over-year, fueled largely by AI data center demand which generated $4.8 billion. However, investors reacted negatively to a revenue miss in the Edge commercial unit, which brought in $5.8 billion against estimates of $6.1 billion.

Management further dampened investor sentiment by providing guidance for slower growth in the next quarter. The company forecasts revenue between $12.2 billion and $12.6 billion, a modest 11% to 14.5% increase quarter-over-quarter. Sandisk is planning an 8-for-1 stock split.