### At a Glance This quarter's results significantly exceeded expectations, primarily driven by the surge in AI inference demand, which boosted both NAND market volume and pricing. Additionally, the new business model (NBM) locked in long-term high-margin orders.

### Key Data Revenue reached $8.965 billion, up 51% quarter-over-quarter and 372% year-over-year. Non-GAAP gross margin was 84.6%, improving by 6.2 percentage points quarter-over-quarter. Non-GAAP EPS stood at $39.25, well above the guidance range.

### Business Progress Data center revenue grew 103% quarter-over-quarter, with its share rising from 12% a year ago to 38%, becoming the largest growth engine. BiCS 8 now accounts for the majority of production, and shipments of the QLC Stargate platform have commenced. NBM has signed 8 customers, covering data centers and edge computing, with total committed revenue of at least $93.9 billion, a weighted average term of over 4 years, and customer financial guarantees reaching $16.5 billion.

### Guidance and Outlook For FY2027 Q1, management expects revenue of $10.3–10.8 billion, gross margin of 83%–85%, and EPS of $44–46. Management has raised its full-year NAND market forecast to over $300 billion, approaching $500 billion by 2027. Bit supply is expected to remain tight through 2027 and beyond.

### Risk/Positive Signals Positive signal: Management repeatedly noted that customers requested increased long-term orders just one quarter after signing contracts, indicating demand is stronger than expected. Negative signal: Consumer business revenue fell 32% quarter-over-quarter, and short-term adjustments in the PC and smartphone markets may persist.