Sandisk (NASDAQ:SNDK) Issues Quarterly Earnings Results

by · The Markets Daily

Sandisk (NASDAQ:SNDK – Get Free Report) posted its earnings results on Wednesday. The data storage provider reported $39.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $33.28 by $5.97, FiscalAI reports. The company had revenue of $8.96 billion for the quarter. Sandisk had a return on equity of 44.06% and a net margin of 34.19%.The business’s quarterly revenue was up 371.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.29 earnings per share. Sandisk updated its Q1 2027 guidance to 44.000-46.000 EPS.

Here are the key takeaways from Sandisk’s conference call:

  • Record fourth-quarter results exceeded guidance, with revenue of $8.97 billion, non-GAAP gross margin of 84.6%, and EPS of $39.25. Management expects first-quarter fiscal 2027 revenue of $10.3 billion-$10.8 billion and EPS of $44-$46.
  • AI-driven inference is accelerating storage demand, with data center revenue up 103% sequentially and representing 38% of SanDisk’s bits exiting fiscal 2026, compared with roughly 12% a year earlier. Management said customer demand is growing faster than supply and expects bits to remain allocated beyond calendar 2027.
  • SanDisk now has eight new business model agreements covering more than 50% of fiscal 2027 bits and approximately two-thirds of fiscal 2028 bits, with a weighted average duration exceeding four years. Signed agreements represent at least $93.9 billion of expected revenue and include $16.5 billion of financial guarantees.
  • The company repurchased $4.5 billion of shares in the quarter and authorized an additional $14 billion program, bringing remaining authorization to $15.5 billion. Management said it expects to execute the buyback program consistently, supported by confidence in future cash generation.
  • Consumer revenue declined 32% sequentially, while smartphone and PC unit demand is expected to fall by mid-teens percentages in calendar 2026. Management expects those markets to stabilize and return to exabyte growth in 2027, but first-quarter gross margin guidance of 83%-85% is below the fourth-quarter level.

Sandisk Trading Down 4.8%

SNDK traded down $64.84 on Thursday, hitting $1,285.65. 12,635,993 shares of the stock traded hands, compared to its average volume of 16,508,848. Sandisk has a 52 week low of $40.53 and a 52 week high of $2,354.39. The firm has a market capitalization of $190.39 billion, a PE ratio of 44.73 and a beta of 5.20. The business has a fifty day moving average price of $1,717.30 and a two-hundred day moving average price of $1,141.98.

Insider Transactions at Sandisk

In related news, Director Necip Sayiner sold 579 shares of the company’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $1,503.11, for a total value of $870,300.69. Following the completion of the transaction, the director directly owned 2,900 shares in the company, valued at approximately $4,359,019. This represents a 16.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Michael Pokorny sold 2,446 shares of the firm’s stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $1,426.18, for a total value of $3,488,436.28. Following the completion of the transaction, the chief accounting officer directly owned 22,375 shares of the company’s stock, valued at approximately $31,910,777.50. This trade represents a 9.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 6,825 shares of company stock worth $10,863,593 over the last 90 days. Insiders own 0.21% of the company’s stock.

Institutional Investors Weigh In On Sandisk

Several institutional investors and hedge funds have recently bought and sold shares of the business. Valley Wealth Managers Inc. bought a new stake in Sandisk in the first quarter valued at about $25,000. Whittier Trust Co. acquired a new stake in Sandisk during the fourth quarter valued at approximately $26,000. Greenline Wealth Management LLC bought a new stake in shares of Sandisk in the 4th quarter valued at approximately $26,000. Chung Wu Investment Group LLC bought a new stake in shares of Sandisk in the 4th quarter valued at approximately $27,000. Finally, IMG Wealth Management Inc. acquired a new position in shares of Sandisk in the 1st quarter worth approximately $29,000.

Sandisk announced that its board has authorized a share repurchase program on Wednesday, August 5th that permits the company to buyback $14.00 billion in outstanding shares. This buyback authorization permits the data storage provider to repurchase up to 6.6% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several research analysts have commented on SNDK shares. Jefferies Financial Group restated a “buy” rating on shares of Sandisk in a research report on Thursday. Barclays raised Sandisk from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $1,200.00 to $2,300.00 in a research report on Tuesday, May 26th. The Goldman Sachs Group reaffirmed a “buy” rating and set a $1,200.00 target price on shares of Sandisk in a research note on Friday, May 1st. Bank of America boosted their price target on Sandisk from $2,100.00 to $2,500.00 and gave the company a “buy” rating in a research note on Wednesday, July 1st. Finally, Weiss Ratings downgraded shares of Sandisk from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, July 21st. Three analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, Sandisk has an average rating of “Moderate Buy” and an average price target of $1,817.57.

View Our Latest Stock Analysis on SNDK

Sandisk News Roundup

Here are the key news stories impacting Sandisk this week:

  • Positive Sentiment: AI data-center demand remains a major growth driver. Sandisk reported fiscal Q4 revenue of approximately $8.97 billion, up 371.6% year over year, while data-center revenue surged 437% during fiscal 2026. Management also described customer relationships as increasingly strategic, with longer-term agreements potentially improving demand visibility. Sandisk delivers quarterly revenue beat on strong AI data center demand
  • Positive Sentiment: Quarterly results significantly exceeded estimates. Sandisk posted adjusted earnings of $39.25 per share versus consensus near $33–$34 and revenue of roughly $8.97 billion versus expectations of about $8.5 billion. The company also authorized a $14 billion share-repurchase program, equivalent to as much as 6.6% of shares outstanding, which could support per-share results over time. Sandisk Reports Fiscal Fourth Quarter 2026 Financial Results
  • Neutral Sentiment: Analyst opinion is divided after the report. Lynx Equity characterized the selloff as a buying opportunity and raised its price target, while Jefferies reportedly cut its target and other firms lowered estimates. The debate centers on whether AI-related storage demand can justify the stock’s elevated valuation and volatility. Lynx Equity lifts SanDisk price target
  • Negative Sentiment: Forward guidance failed to match elevated expectations. Sandisk forecast fiscal Q1 2027 revenue of $10.3 billion to $10.8 billion. Although the range is strong and EPS guidance of $44–$46 exceeds consensus, the revenue outlook was below some Wall Street estimates, including forecasts above $11 billion. Investors interpreted this as a sign that growth and pricing momentum may be moderating. Sandisk and Western Digital drag on chip stocks
  • Negative Sentiment: Margin durability and sector-cycle risks are pressuring sentiment. Investors are questioning whether current margins can persist amid potentially increasing NAND supply, pricing pressure and the cyclical nature of memory products. The weakness has spread across storage and memory stocks, reinforcing concerns that expectations had become too optimistic. The SanDisk selloff explained

About Sandisk

(Get Free Report)

SanDisk Corporation offers flash storage solutions. The Company designs, develops and manufactures data storage solutions in a range of form factors using flash memory, controller, firmware and software technologies. The Company operates through flash memory storage products segment. Its solutions include a range of solid state drives (SSD), embedded products, removable cards, universal serial bus (USB), drives, wireless media drives, digital media players, and wafers and components. It offers SSDs for client computing applications, which encompass desktop computers, notebook computers, tablets and other computing devices.

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