Sandisk Corporation

conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Ivan Donaldson, Vice President of Investor Relations. Please go ahead.

Before we begin, please note that today's discussion will contain forward-looking statements based on management's current assumptions and expectations, which are subject to various risks and uncertainties. These forward-looking statements include expectations for our technology and product portfolio, our business plans and performance, market trends and opportunities, and our future financial results. We assume no obligation to update these statements. Please refer to our annual report on Form 10-K and our other filings with the SEC for more information on the risks and uncertainties that could cause actual results to differ materially from expectations. We will also make reference to non-GAAP financial measures today. Reconciliations between the non-GAAP and comparable GAAP financial measures are included in written materials posted in the investor relations section of our website. With that, I'll turn the call over to David.

Thanks, Ivan. Good afternoon, and thank you for joining Sandisk's first quarter fiscal year 2026 earnings call. Sandisk delivered a strong quarter with revenue of $2.3 billion, up sequentially 21%, and non-GAAP earnings per share of $1.22. We generated $448 million in adjusted free cash flow and closed the quarter in a net cash position of $91 million. As discussed in February during our analyst day, we are focused on growing revenue, expanding margins, and generating sustainable free cash flow to create shareholder value, and we are executing that plan. Our results reflect the strong execution by the Sandys team in an environment marked by strengthening demand across our end markets. In the first quarter, demand for our NAN products continued to outpace our supply, a dynamic we expect to persist through the end of calendar year 26 and beyond. In response, we are making strategic allocation decisions to maximize long-term value creation. We are focused on advancing our technology roadmap and strengthening customer partnerships to deliver the right products to the right applications and customers. Customers are proactively seeking long-term commitments given the critical nature of our technology and to secure continued access to our products. These priorities are expected to deliver durable and attractive financial results while unlocking the strength of our broad product portfolio. With investments in data centers and AI infrastructure, expectances surpass $1 trillion by 2030 The demand for NAND storage products capable of processing large volumes of data quickly and efficiently is increasing dramatically, creating a strong tailwind for our high-capacity, power-efficient SSDs enabled by our BICS-8 technology. BICS-8, which delivers industry-leading capacity, IO performance, and energy efficiency, accounted for 15% of total BITs shipped and is expected to reach majority of BIT production exiting fiscal year 26. Our BICS8 products are expected to enable us to grow our data center business while further strengthening our positioning in the edge and consumer markets. Let's dive into the first quarter results by business. Our data center business gained momentum with revenue up 26% sequentially as global hyperscaler, NeoCloud, and OEM customers are seeking to deepen their partnership with SanDisk. Our storage-focused SSD product line, codenamed Stargate, is growing in demand with two hyperscaler qualifications underway and a third hyperscaler along with a major storage OEM planned for calendar year 26. Across the data center portfolio, We are working with five major hyperscale customers through active sales and strategic engagements. In Edge, we are seeing positive momentum from a PC refresh cycle, aided by Windows 11 adoption and Windows 10 end of life. PC unit shipments are expected to grow low single digits with mid-single digit growth in capacity per device in calendar years 25 and 26. Beyond PC, premium smartphones are delivering modest unit growth, supported by new model launches featuring enhanced generative AI capabilities. Average smartphone capacity per device is expected to grow high single digits in calendar years 25 and 26. Looking ahead, we expect continued momentum in edge as device upgrades accelerate, driving increasing NAND content. Ongoing supply and demand dynamics are expected to extend the need to strategically place bits, as mentioned above. As customers across data center and edge seek higher performance AI inference capabilities, demand for innovative solutions to address AI inference storage has increased interest in what our high bandwidth flash, our HBF technology will deliver. Building on the technical advisory board, and ecosystem partnership with SK Hynix we announced last quarter, we are actively engaging potential customers for inference applications in both Data Center and Edge. As we enter the holiday period, we are also well-positioned to capture strong seasonal demand with our refreshed consumer portfolio and significant presence across key retail and online channels. We are engaging with the gaming and creator communities to sustain our momentum. Our recently launched Memory Man campaign is creating lots of interest and excitement, strengthening brand relevance ahead of the holiday season. Also in consumer, our partnerships with leading companies like Nintendo remain strong, with solid adoption of our co-branded Switch 2 MicroSD Express cards, which eclipsed 900,000 units sold in fiscal Q1. We are also expanding our presence in the handheld gaming sector with the new SanDisk MicroSD for ROG Xbox Alley, reinforcing our position in gaming storage. Our consumer business remains a major focus for the company, driving revenue growth and attractive margin through cycles. In summary, this is a new era for SanDisk. We have a strong balance sheet, an industry-leading product portfolio, and a clear technology roadmap that drives organic, strategic customer engagements. As we help power one of the most transformative technology megatrends of our time, driven by accelerated AI proliferation, we are confident in our ability to create significant and sustainable value for our customers and shareholders. With that, I'll turn the call over to Luis to dive deeper into our financial performance and guidance.