Sandisk: Expected supply shortage to continue until the end of 2026. Data centers will become the largest application market for NAND.

SanDisk announced its performance for the first quarter of fiscal year 2026. On a non-GAAP basis, quarterly revenue was $2.308 billion, an increase of 21% quarter-on-quarter and 23% year-on-year; gross profit margin was 29.9%, up 3.5 percentage points quarter-on-quarter but down 9 percentage points year-on-year; operating profit was $245 million, up 145% quarter-on-quarter but down 31% year-on-year; net profit was $181 million, up 331% quarter-on-quarter but down 31% year-on-year. In this quarter, SanDisk's NAND bit shipments increased by approximately 15%, with average selling prices in the mid-single digit percentage range, driving revenue and gross margin to exceed expectations. SanDisk stated that in this quarter, there was more demand for NAND products than supply, reducing inventory turnover from 135 days to 115 days, and this trend is expected to continue until the end of 2026. SanDisk CEO David stated that by 2026, the data center market will become the largest market for NAND flash memory for the first time.