Sandisk (NASDAQ:SNDK) Announces Earnings Results

Sandisk (NASDAQ:SNDK) announced its quarterly earnings results on Wednesday. The data storage provider reported $39.25 earnings per share for the quarter, beating analysts’ consensus estimates of $33.28 by $5.97, FiscalAI reports. The firm had revenue of $8.96 billion for the quarter. Sandisk had a net margin of 34.19% and a return on equity of 44.06%. The business’s quarterly revenue was up 371.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.29 EPS. 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 Price Performance

NASDAQ SNDK traded down $77.12 on Wednesday, hitting $1,350.50. 15,684,399 shares of the stock were exchanged, compared to its average volume of 16,534,184. The company has a market capitalization of $200.00 billion, a PE ratio of 46.94 and a beta of 5.20. The business’s fifty day moving average is $1,717.30 and its 200 day moving average is $1,141.98. Sandisk has a 52 week low of $40.53 and a 52 week high of $2,354.39.

Insider Activity

In other Sandisk news, CAO Michael Pokorny sold 2,446 shares of the business’s stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $1,426.18, for a total transaction of $3,488,436.28. Following the transaction, the chief accounting officer owned 22,375 shares of the company’s stock, valued at $31,910,777.50. The trade was a 9.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Alper Ilkbahar sold 2,000 shares of the business’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $1,756.58, for a total value of $3,513,160.00. Following the transaction, the executive vice president directly owned 52,677 shares in the company, valued at approximately $92,531,364.66. This trade represents a 3.66% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 6,825 shares of company stock valued at $10,863,593 in the last 90 days. 0.21% of the stock is owned by company insiders.

Institutional Inflows and Outflows

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

Trending Headlines about Sandisk

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Sandisk delivered a major earnings beat. Fiscal Q4 revenue reached approximately $8.96 billion, up 372% year over year, while EPS of $39.25 exceeded the $33.28 consensus estimate. Net income was about $6.9 billion, supported by stronger pricing and higher volumes. Sandisk Reports Fiscal Fourth Quarter 2026 Financial Results
• Positive Sentiment: AI data-center demand is driving the outlook. Sandisk forecast fiscal first-quarter 2027 revenue of $10.3 billion to $10.8 billion and EPS of $44 to $46. The EPS outlook is above consensus, while the revenue range brackets estimates, reflecting continued demand for memory chips and storage used in AI infrastructure. Sandisk forecasts upbeat quarterly revenue on AI-driven demand
• Positive Sentiment: Datacenter growth and capital returns strengthened the investment case. Datacenter revenue reportedly surged 437% in fiscal 2026, and Sandisk expanded its share-repurchase authorization by $14 billion. Management also highlighted customer partnerships and the potential for durable free-cash-flow growth. Sandisk Corporation Stock Slides Despite Revenue Surge and Buyback
• Neutral Sentiment: Expectations and volatility were unusually high. Options had implied a post-earnings move of roughly 15%, and SNDK had already rallied sharply in recent sessions. The stock’s reaction suggests investors may have been pricing in an exceptionally large beat and are taking profits despite the strong report.
• Negative Sentiment: Investors remain concerned about the durability of NAND pricing and margins. Sandisk’s elevated valuation leaves little room for execution missteps, while potential oversupply, Chinese competition and cyclical NAND pricing could pressure future profitability. The revenue guidance midpoint is also only modestly above, and close to, consensus expectations. SNDK Earnings: Sandisk Stock Falls Despite Strong Earnings Beat

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on SNDK. UBS Group set a $1,700.00 price objective on shares of Sandisk in a report on Monday, May 4th. Arete Research raised shares of Sandisk from a “hold” rating to a “strong-buy” rating in a research note on Monday, April 13th. Sanford C. Bernstein increased their target price on Sandisk from $1,700.00 to $3,000.00 and gave the stock an “outperform” rating in a report on Monday, June 29th. Morgan Stanley boosted their price target on Sandisk from $1,100.00 to $1,750.00 and gave the company an “overweight” rating in a report on Wednesday, June 3rd. Finally, Royal Bank Of Canada boosted their price target on Sandisk from $650.00 to $1,000.00 and gave the company a “sector perform” rating in a report on Friday, May 1st. Three investment analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $1,811.38.

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.