Sandisk Beats Q1 Estimates as AI Data Center Demand Grows

Strong demand for artificial intelligence infrastructure is supporting Sandisk's financial performance, with the semiconductor company exceeding first-quarter 2026 revenue and earnings expectations. Its results, published in the broader third-quarter earnings season, highlight growing demand for data center storage and improved visibility into future business performance.

According to an analysis published by Seeking Alpha on October 30, Sandisk reported revenue 3% above analyst estimates and earnings per share 6.7% higher than expected. The company also recorded an operating margin exceeding 80%.

A major contributor to its business outlook is the company's New Business Model (NBM) contracts, which provide greater predictability through committed customer demand and revenue guarantees.

Sandisk reported $89 billion in remaining performance obligations (RPO), representing contracted business that supports its future revenue outlook. Financial guarantees associated with these agreements also strengthen demand visibility.

The Seeking Alpha analysis subsequently upgraded its assessment of Sandisk to a buy rating, citing the company's financial performance, contractual commitments, and exposure to structural growth in artificial intelligence infrastructure.

The analysis also highlighted Sandisk's valuation at approximately 5.5 times estimated 2027 earnings, corresponding to an estimated earnings yield of 18% to 20%.

Meanwhile, the broader US corporate earnings season continued producing strong results. Yahoo Finance reported on October 30 that approximately one-quarter of S&P 500 companies had released third-quarter financial results.

According to FactSet data cited by Yahoo Finance, aggregate earnings growth among reporting S&P 500 companies reached 29.5%. If maintained throughout the reporting season, that performance would represent three consecutive quarters of earnings growth exceeding 25%.

Major companies reporting results during the period included Microsoft, Alphabet, Amazon, Exxon Mobil, Intel, Boeing, Ford, and Eli Lilly. Exxon Mobil and Chevron also benefited from stronger refining margins, which contributed to improved earnings.