TSTickerStarGet alerts

SNDK 10-Q filed 2026-10-30 | Key takeaways

SNDK filed its 10-Q; the most relevant disclosure change is added Subsequent events - Stock split: On October 29, 2026, the Board approved an 8-for-1 forward stock split to be distributed to stockholders of record as of November 9, 2026, with shares issued after market close on November 19, 2026; stock will trade post-split on November 20, 2026 under existi. Customer concentration: Customer One represented 12% of revenue; Customer Two represented 12% of revenue.

Share this story

Key takeaways

  • Subsequent event: Board approved 8-for-1 forward stock split on October 29, 2026; record date November 9, distribution after market close November 19, trading post-split November 20, 2026

  • Accounts receivable concentration: Three customers represented approximately 16%, 15%, and 11% of outstanding receivables as of October 2, 2026

  • Revolving Credit Facility amended September 9, 2026: SOFR margin reduced from 2.00% to 1.375%, commitment fee from 0.30% to 0.175%, maturity extended to September 9, 2031

  • Share repurchases: Q1 FY2027 repurchased 3 million shares for $5.0 billion; $10.5 billion remains available under $20 billion combined repurchase programs

  • Revenue by end market: Datacenter $4.8B (vs $269M), Edge $5.8B (vs $1.4B), Consumer $397M (vs $652M)

  • Revenue by geography: Asia $7.2B, Americas $3.3B, Europe/Middle East/Africa $558M

  • Remaining performance obligations from NBMs: $88.9 billion, with 20% expected to be recognized as revenue over next twelve months

Key metrics

Revenue, netQ1 FY2027 (three months ended October 2, 2026)
$11,031 million+378% from $2,308 million
Net incomeQ1 FY2027
$8,101 million+7,133% from $112 million
Operating incomeQ1 FY2027
$8,780 million+4,889% from $176 million
Gross marginQ1 FY2027
85.0%+5,500 bps from 29.8%
Operating marginQ1 FY2027
79.6%+7,200 bps from 7.6%
Effective tax rateQ1 FY2027
13%+300 bps from 10%
Datacenter revenueQ1 FY2027
$4,802 million+1,685% from $269 million
Edge revenueQ1 FY2027
$5,832 million+320% from $1,387 million

Customer concentration

Customer OneQ1 FY2027 (three months ended October 2, 2026)
12%Share of revenue
Customer TwoQ1 FY2027 (three months ended October 2, 2026)
12%Share of revenue
Customer 1As of October 2, 2026
16%Share of accounts receivable
Customer 2As of October 2, 2026
15%Share of accounts receivable
Customer 3As of October 2, 2026
11%Share of accounts receivable

Disclosure changes

  • Subsequent events - Stock split

    On October 29, 2026, the Board approved an 8-for-1 forward stock split to be distributed to stockholders of record as of November 9, 2026, with shares issued after market close on November 19, 2026; stock will trade post-split on November 20, 2026 under existing symbol SNDK

    Stock split will increase share count 8x while proportionately reducing per-share metrics; pro forma Q1 FY2027 EPS would be $6.58 diluted vs reported $52.60
  • Revolving Credit Facility amendment

    Amendment No. 1 to Revolving Credit Facility on September 9, 2026 reduced SOFR margin from 2.00% to 1.375%, base rate margin from 1.00% to 0.375%, and commitment fee from 0.30% to 0.175% per annum; extended maturity from February 21, 2030 to September 9, 2031

    Improved borrowing terms reduce interest costs and extend financing flexibility
  • Customer concentration

    For Q1 FY2027, two separate customers each accounted for 12% of net revenue; three customers accounted for approximately 16%, 15%, and 11% of outstanding accounts receivable as of October 2, 2026

    Customer concentration has emerged as a material metric; two customers now represent 24% of revenue combined vs none above 10% a year ago
  • Marketable equity securities

    Marketable equity securities fair value increased to $2.3 billion as of October 2, 2026 from $1.8 billion as of July 3, 2026, representing investment in Nanya Technology Corporation; $512 million unrealized gain recognized in Q1 FY2027

    Significant equity investment with 3-year statutory lock-up period; unrealized gains flowing through income statement
  • Contract liabilities and refund liabilities

    Total contract liabilities were $1.5 billion as of October 2, 2026 (up from $1.2 billion as of July 3, 2026); refund liabilities were $1.6 billion (up from $1.5 billion); NBM-driven increases

    Growing NBM-related liabilities reflect long-term customer commitments; off-balance sheet collateral held by third parties was $12.8 billion as of October 2, 2026
  • Share repurchase programs

    $20 billion in combined repurchase programs authorized ($6B on April 30, 2026 plus $14B on August 5, 2026); Q1 FY2027 repurchased 3 million shares for $5.0 billion; $10.5 billion remaining

    Significant capital return program; $5 billion repurchased in single quarter represents 25% of total authorization

Primary source

TickerStar generated this brief from an official company, investor-relations, earnings-call, or regulatory source. Review the primary material before making an investment decision.

Open SEC filing

Follow SNDK in real time

Get material earnings, filing, IR, and earnings-call alerts by email.

Create a free alert