Sandisk server revenue surged 437% in a year as NAND market triples to $300 billion

Sandisk reported quarterly revenue of $8.97 billion, up 372% year over year and 51% sequentially. The server segment was the main growth driver, with its share of shipments rising from 12% to 38% and related revenue doubling to $2.98 billion. The company attributes the surge to demand for components used in artificial intelligence infrastructure.

For the completed fiscal 2026 year, the server business brought in $5.2 billion, a 437% increase from the prior year. The manufacturer is now focused on supplying enterprise solid-state drives based on TLC memory, which has become its fastest-growing revenue source. Sandisk expects server revenue to account for well over 50% of the SSD market next year, although the segment already contributed a third of total company revenue in the past quarter.

The edge computing segment, covering mobile devices, PCs, and robotics, grew revenue by 392% to $5.4 billion in the last quarter, with a 48% sequential increase. For the full fiscal year, related revenue nearly tripled to $12.2 billion. Sandisk management notes a demand correction in the PC and smartphone markets driven by sharply higher memory prices, but expects both segments to return to growth next year.

Consumer electronics fared the worst, generating only $556 million in the past quarter, down 32% from the previous quarter and 5% year over year. Still, the segment grew 29% to $2.94 billion for the fiscal year.

Sandisk projects the total NAND market will exceed $300 billion this year, tripling from calendar 2025, and reach $500 billion next year. The company, however, does not expect to fully meet demand for its products in calendar 2027. Sandisk's gross margin for the fourth quarter of fiscal 2026 rose from 26.4% to 84.6% year over year, as NAND prices climbed faster than shipment volumes. Operating expenses increased by only 20% to $484 million.