SanDisk (SNDK) Earnings Date & Reports

Key Takeaways

• Fiscal fourth quarter 2026 revenue reached $8.97 billion, up 372% year over year and 51% sequentially.
• Non-GAAP diluted earnings per share (EPS) of $39.25 beat the analyst consensus estimate of roughly $34; GAAP diluted EPS was $43.97.
• Gross margin surged to 84.6%, up from 26.2% a year earlier, as NAND flash memory pricing climbed sharply.
• Datacenter revenue more than doubled sequentially to $2.98 billion, driven by artificial intelligence (AI) infrastructure spending.
• Management guided fiscal first quarter 2027 revenue of $10.3 billion to $10.8 billion and non-GAAP EPS of $44 to $46.
• The board added a $14 billion buyback authorization, lifting total remaining repurchase capacity to $15.5 billion.

Earnings Context and Why It Matters

Sandisk, a leading provider of NAND flash-based storage, closed fiscal 2026 in the middle of a historic memory upcycle. The company completed its separation from Western Digital in February 2025, making this report a key test of its standalone earnings power. With AI datacenter buildouts driving demand for high-capacity solid-state drives (SSDs), pricing has been the dominant swing factor. The quarter's results matter because they show whether Sandisk can convert surging prices into durable cash flow, and they set the tone for how investors value a business whose profitability has swung dramatically over the past year.

Reported Results

For the fiscal fourth quarter ended July 3, 2026, Sandisk reported revenue of $8.97 billion, up 51% from $5.95 billion in the prior quarter and up 372% from $1.90 billion a year earlier. Full fiscal year 2026 revenue was $20.2 billion, up 175%.

On a generally accepted accounting principles (GAAP) basis, diluted EPS was $43.97, with net income of $6.90 billion. Non-GAAP diluted EPS came in at $39.25, exceeding the consensus estimate of approximately $34 and above the high end of the company's own prior guidance. Management attributed about two-thirds of sequential revenue growth to higher pricing and one-third to higher volumes.

Gross margin reached 84.6%, up from 78.4% in the prior quarter and 26.2% a year earlier. By end market, datacenter revenue rose 103% sequentially to $2.98 billion, edge revenue rose 48% to $5.43 billion, and consumer revenue fell 32% to $556 million. The company generated $7.13 billion in quarterly operating cash flow, fully repaid its long-term debt, and repurchased about $4.5 billion of stock.

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Market Reaction and Investor Sentiment

Despite a sizable beat, Sandisk shares declined roughly 12% in after-hours trading following the release, reflecting investor skepticism about whether the memory pricing boom can be sustained. The stock later traded well below its 52-week high, suggesting the market is already pricing in the risk of a cyclical rollover in NAND prices. Sentiment is split between enthusiasm over the company's AI-driven datacenter growth and caution about the historically volatile nature of memory pricing. The company's aggressive buyback program and debt-free balance sheet have been viewed as positives, but investors remain focused on how long current pricing conditions will persist.

Forward Outlook and Key Factors to Monitor

Sandisk guided fiscal first quarter 2027 revenue to a range of $10.3 billion to $10.8 billion, implying another sequential step-up of roughly 15% to 20%, with non-GAAP EPS expected between $44 and $46. Gross margin is projected to remain exceptionally high, in the low-to-mid 80s percent range.

The central question for investors is the durability of NAND pricing. Memory has historically been a deeply cyclical market, and the current levels of gross margin and cash generation are well above historical norms. Management has leaned into long-term "New Business Model" agreements with customers that include upfront prepayments, aiming to lock in supply commitments and smooth out volatility. The company has said it expects these agreements to represent a majority of bits shipped in fiscal 2027.

Other factors worth watching include capital expenditure plans tied to next-generation technologies such as BiCS8 and BiCS10, the pace of datacenter SSD adoption among AI infrastructure builders, and the balance between volume growth and pricing in driving revenue. Supply discipline across the broader NAND industry, including Sandisk's relationship with manufacturing partner Kioxia, will also influence how long the favorable pricing environment lasts.

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