Revenue Performance - First quarter revenue was $2.31 billion, up 21% sequentially and 23% year-over-year, exceeding guidance[4] - The company expects second quarter revenue to be between $2.55 billion and $2.65 billion, with Non-GAAP diluted net income per share projected to be between $3.00 and $3.40[8] - Revenue for the three months ended October 3, 2025, was $2,308 million, a 22.5% increase from $1,883 million for the same period in 2024[20] Income and Profitability - GAAP net income for Q1 2026 was $112 million, a 587% increase from the previous quarter, with diluted net income per share at $0.75[5] - Operating income for Q1 2026 was $176 million, a significant increase of 878% from the previous quarter[5] - Gross profit decreased to $687 million, down 5.4% from $726 million year-over-year[20] - Operating income fell to $176 million, a decline of 39.5% compared to $291 million in the prior year[20] - Net income was $112 million, representing a 46.5% decrease from $211 million in the same quarter last year[20] - Non-GAAP net income increased to $181 million, compared to $263 million in the prior year, reflecting a 31.2% decline[26] Cash Flow - Cash flow provided by operating activities was $488 million, a significant improvement from a cash outflow of $131 million in the same quarter last year[26] - Free cash flow for the quarter was $438 million, compared to a negative $198 million in the same period last year[26] - Free cash flow is defined as cash flows from operating activities less purchases of property, plant, and equipment, net[34] - Adjusted free cash flow includes free cash flow plus activity related to Flash Ventures, net[34] - The company considers free cash flow and adjusted free cash flow as useful indicators for strategic opportunities[34] Expenses and Liabilities - Total current assets decreased to $4.98 billion from $5.09 billion in the previous quarter[18] - Total liabilities decreased to $3.37 billion from $3.77 billion in the previous quarter[18] - Research and development expenses increased to $316 million, up from $283 million year-over-year, indicating a focus on innovation[20] - Total operating expenses rose to $511 million, a 17.5% increase from $435 million in the same quarter last year[20] Business Developments - The company completed its separation from Western Digital Corporation on February 21, 2025, becoming a standalone publicly traded company[10] - Datacenter revenue increased by 26% sequentially, with two hyperscalers in qualification and engagement with five major hyperscale customers[4] - BiCS8 technology accounted for 15% of total bits shipped, expected to dominate bit production by the end of fiscal year 2026[4] - The company incurred $10 million in loss on business divestiture during the quarter, which is not indicative of ongoing operations[31]
Sandisk Corporation(SNDK) - 2026 Q1 - Quarterly Results