During the earnings conference call for the first fiscal quarter of the 2026 fiscal year (which concluded on October 3, 2025), executives from SanDisk disclosed that the demand for NAND flash products during the quarter had surpassed the available supply capacity. They anticipate that this supply-demand imbalance will continue until the end of 2026, and possibly extend beyond that timeframe.

The CEO mentioned that downstream contract orders are increasingly transitioning towards long-term agreements. Moreover, customers have already started to share their demand forecasts for 2027. SanDisk projects that data centers will emerge as the primary driver of demand for NAND flash in 2026.

In the first fiscal quarter of 2026, SanDisk reported revenues amounting to $2.308 billion, marking a 23% year-over-year increase and a 21% quarter-over-quarter rise. Notably, revenues from data centers experienced a 26% growth on a quarter-over-quarter basis. By the end of this fiscal year, the BiCS8 technology is expected to constitute the majority of the company's production capacity. Additionally, SanDisk forecasts that its revenues for the second fiscal quarter of 2026 will reach approximately $2.6 billion.