Sandisk shares jumped 7% after the memory maker said first-quarter results and guidance were well above Wall Street's forecast.

For the period ending Oct. 3, Sandisk said it earned an adjusted $1.22 per share as revenue rose 22.6% year-over-year to $2.31B. Included in that was a 26% sequential jump in data center revenue, as Sandisk now has two hyperscalers in qualification, and a third and top storage maker planned for 2026. It has also engaged with five major hyperscalers.

Analysts were expecting Sandisk to earn $0.88 per share on an adjusted basis and generate $2.15B in revenue.

“Customers are turning to Sandisk for our leading technology and products, which are exceptionally well positioned at a time when demand is strengthening,” said David Goeckeler, CEO, Sandisk. “Our strong balance sheet and leading portfolio, combined with this phase of renewed growth and profitability, enabled us to achieve our net cash positive milestone ahead of plan and is positioning us to drive meaningful long-term value for our shareholders.”

Looking ahead, Sandisk expects to earn between $3.00 and $3.40 per share on an adjusted basis, well above the $1.82 analysts were expecting. Revenue is forecast to be between $2.55B and $2.65B, above the $2.36B consensus estimate.

Jefferies raised its price target on SanDisk to $250.00 from $180.00 on Friday, maintaining a Buy rating on the memory chip manufacturer.