Sandisk (NASDAQ:SNDK) Posts Earnings Results, Beats Expectations By $2.89 EPS

Sandisk (NASDAQ:SNDK) posted its earnings results on Thursday. The data storage provider reported $6.20 EPS for the quarter, beating analysts’ consensus estimates of $3.31 by $2.89, Briefing.com reports. The firm had revenue of $3.03 billion during the quarter, compared to the consensus estimate of $2.67 billion. Sandisk had a positive return on equity of 10.37% and a negative net margin of 11.66%.The firm’s quarterly revenue was up 61.2% compared to the same quarter last year.

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

• SanDisk beat expectations with Q2 revenue of $3.025B (+31% QoQ), non‑GAAP EPS of $6.20, a 51.1% non‑GAAP gross margin, and a strong Q3 guide of $4.4–$4.8B revenue and 65–67% gross margin.
• Management says artificial intelligence is driving a structural step‑up in NAND demand—data center is expected to be the largest NAND market in 2026—and the company is pushing multi‑year supply agreements with customers.
• Cash flow and leverage improved materially, generating $843M adjusted free cash flow, paying down $750M of debt this quarter and ending with ~$936M net cash.
• Demand is expected to exceed supply beyond 2026, so SanDisk is implementing disciplined allocation to strategic customers and keeping CapEx steady (mid‑ to high‑teens bit growth target), which could both protect margins and constrain near‑term share gains.
• SanDisk extended the Yokkaichi JV through 2034 for supply assurance but committed to pay Kioxia $1,165M between 2026–2029 for manufacturing services, a material future cash/COGS obligation.

Sandisk Trading Up 6.9%

Shares of NASDAQ SNDK traded up $36.95 during trading on Friday, hitting $576.25. 40,479,331 shares of the company were exchanged, compared to its average volume of 15,739,918. Sandisk has a 12-month low of $27.89 and a 12-month high of $676.69. The firm has a market capitalization of $84.45 billion and a PE ratio of -75.92. The company has a fifty day moving average price of $308.87 and a 200-day moving average price of $178.65. The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.03 and a current ratio of 3.29.

Insider Activity at Sandisk

In related news, Director Necip Sayiner sold 1,271 shares of the stock in a transaction that occurred on Wednesday, December 3rd. The stock was sold at an average price of $195.14, for a total value of $248,022.94. Following the completion of the transaction, the director directly owned 3,479 shares in the company, valued at approximately $678,892.06. This represents a 26.76% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.21% of the company’s stock.

Institutional Trading of Sandisk

Several hedge funds have recently made changes to their positions in the business. Osaic Holdings Inc. purchased a new position in shares of Sandisk during the second quarter worth about $317,000. Merit Financial Group LLC acquired a new stake in shares of Sandisk during the third quarter worth $408,000. Dimensional Fund Advisors LP acquired a new stake in shares of Sandisk in the 3rd quarter worth $100,080,000. First Trust Advisors LP acquired a new stake in Sandisk in the third quarter valued at about $9,788,000. Finally, Blair William & Co. IL acquired a new stake in shares of Sandisk in the 3rd quarter valued at approximately $591,000.

Sandisk News Summary

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Q2 results substantially beat expectations — revenue ~ $3.02B (up ~61% y/y) and EPS far above consensus; management cited strong enterprise/datacenter and AI demand. Earnings Release & Slides
• Positive Sentiment: Blowout Q3 guidance: revenue guidance around $4.4–4.8B and EPS guidance (~$12–14) well above consensus, signaling much stronger demand and pricing than Street expected. Reuters: Forecast + AI Demand
• Positive Sentiment: Extended strategic supply/joint-venture support — Sandisk and Kioxia extended the Yokkaichi JV through 2034, reducing supply uncertainty for NAND output. Business Wire: JV Extension
• Positive Sentiment: Analyst reactions pushed price targets higher (examples: Wedbush raised PT to $740; Mizuho raised PT to $600), reinforcing bullish investor sentiment. Benzinga: Analyst Moves
• Neutral Sentiment: Wide media and aftermarket coverage (Barron’s, Investopedia, Zacks, Seeking Alpha) is increasing visibility and trading interest — amplifies momentum but not a fundamental change by itself. Barron’s Coverage
• Neutral Sentiment: Heavy options and leverage activity has been reported, which can increase intraday volatility; useful for traders, but adds short-term risk. Yahoo Finance: Options Activity
• Negative Sentiment: Valuation and momentum risks: the stock has already surged strongly (huge YTD/IPO run), producing an elevated P/E and leaving limited margin for execution misses or a demand slowdown; some investors may view the rally as stretched. Invezz: Valuation/Outlook
• Negative Sentiment: Macro/market risk: broader futures/market moves and any cooling in AI capex could quickly reverse sentiment given the large run-up. Benzinga: Macro Movers

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on SNDK. Zacks Research lowered Sandisk from a “strong-buy” rating to a “hold” rating in a research note on Thursday, January 22nd. Bank of America upped their price target on shares of Sandisk from $300.00 to $390.00 and gave the stock a “buy” rating in a research report on Wednesday, January 7th. Sanford C. Bernstein raised their price objective on Sandisk from $300.00 to $580.00 and gave the company an “outperform” rating in a research report on Wednesday, January 14th. Morgan Stanley set a $690.00 price objective on Sandisk in a report on Friday. Finally, Citigroup lifted their price target on Sandisk from $280.00 to $490.00 and gave the stock a “buy” rating in a research report on Tuesday, January 20th. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $490.60.

About Sandisk

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.