SanDisk (SNDK) Earnings Date & Reports

Key Takeaways

• Fiscal fourth-quarter revenue reached $8.97 billion, up roughly 51% sequentially and about 372% year over year, topping the consensus estimate near $8.42 billion.
• Non-GAAP earnings per share (EPS) came in at $39.25, beating the roughly $34.59 analyst consensus.
• Data center revenue surged 103% sequentially to about $2.98 billion, driven by demand for AI-focused enterprise solid-state drives (SSDs).
• Non-GAAP gross margin climbed to 84.6%, up from 78.4% in the prior quarter.
• Shares fell roughly 12% in after-hours trading despite the strong results, reflecting elevated investor expectations.

Earnings Context and Why It Matters

SanDisk is a pure-play flash memory maker that completed its separation from Western Digital in February 2025. As a supplier of NAND flash memory and enterprise SSDs, it sits at the center of the artificial intelligence (AI) buildout, where data centers require vast amounts of fast, high-capacity storage. This report matters because it shows whether the company can convert surging memory pricing and AI-driven demand into durable, high-margin growth, and whether its new long-term supply agreements can help smooth the memory industry's historically sharp boom-and-bust cycles.

Reported Results

For the fiscal fourth quarter ended July 3, 2026, SanDisk reported revenue of $8.97 billion, up about 51% sequentially and roughly 372% year over year. The result exceeded the company's guidance and beat the consensus estimate of approximately $8.42 billion. Non-GAAP diluted EPS was $39.25, well above the consensus of about $34.59.

Non-GAAP gross margin expanded to 84.6%, up from 78.4% in the prior quarter and 26.4% a year earlier, driven by a shift toward higher-value products and a favorable pricing environment. By end market, data center revenue climbed 103% sequentially to roughly $2.98 billion, while edge revenue rose 48% to about $5.43 billion. Consumer revenue declined 32% to approximately $556 million, in line with seasonal patterns. GAAP (Generally Accepted Accounting Principles) net income was approximately $6.9 billion.

Looking ahead, management guided for fiscal first quarter 2027 revenue of $10.3 billion to $10.8 billion, non-GAAP EPS of $44 to $46, and a non-GAAP gross margin of 83% to 85%. The company also reported signing 10 new business model agreements with minimum contracted revenue of roughly $93.9 billion, and repurchased about $4.5 billion of stock during the quarter.

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Market Reaction and Investor Sentiment

Despite reporting results that exceeded consensus on both revenue and EPS, SanDisk shares fell roughly 12% in after-hours trading. The decline suggests that investors had already priced in a very strong quarter following a sharp run-up in the stock over the prior year. Elevated expectations around AI-driven memory demand, combined with a sequential contraction in the consumer segment and a valuation that left little room for error, appeared to drive a "sell the news" reaction. The muted response underscores how much optimism was already embedded in the share price heading into the print.

Forward Outlook and Key Factors to Monitor

SanDisk enters fiscal 2027 with unusually strong revenue visibility. Management's guidance for the fiscal first quarter implies another meaningful step-up in revenue and EPS, supported by firm NAND pricing and the ramp of its enterprise SSD portfolio.

A key factor to watch is the company's new business model agreements. Management has indicated these multi-year contracts could account for more than half of its bit shipments in fiscal 2027, which may reduce the historical cyclicality of the memory business and improve pricing stability.

Investors should also monitor the trajectory of non-GAAP gross margin, which has expanded dramatically and will be a central test of whether current pricing levels are sustainable. On the cost side, higher capital expenditures tied to next-generation NAND production are a factor to track against free cash flow generation.

Finally, the softer consumer segment and the possibility of a moderation in AI-related data center spending remain the main downside risks. How the company balances its data center, edge, and consumer mix—and whether it can keep converting demand into margin expansion—will be central to the next several quarters.

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