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

Sandisk (NASDAQ:SNDK) released its quarterly earnings results on Thursday. The data storage provider reported $6.20 EPS for the quarter, beating the consensus estimate of $3.31 by $2.89, Briefing.com reports. The business had revenue of $3.03 billion during the quarter, compared to analyst estimates of $2.67 billion. The company’s 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 Stock Performance

Sandisk stock traded up $36.95 during trading hours on Friday, hitting $576.25. The stock had a trading volume of 40,291,324 shares, compared to its average volume of 17,745,680. The company has a 50-day moving average of $301.35 and a two-hundred day moving average of $174.97. The company has a quick ratio of 2.03, a current ratio of 3.29 and a debt-to-equity ratio of 0.14. The company has a market cap of $84.45 billion and a PE ratio of 1,800.78. Sandisk has a fifty-two week low of $27.89 and a fifty-two week high of $676.69.

Insider Buying and Selling

In other Sandisk news, Director Necip Sayiner sold 1,271 shares of Sandisk stock in a transaction on Wednesday, December 3rd. The stock was sold at an average price of $195.14, for a total transaction of $248,022.94. Following the completion of the transaction, the director directly owned 3,479 shares of the company’s stock, valued at approximately $678,892.06. This trade represents a 26.76% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 0.21% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. State Street Corp acquired a new position in shares of Sandisk in the third quarter valued at approximately $491,053,000. Arrowstreet Capital Limited Partnership acquired a new stake in shares of Sandisk during the 3rd quarter worth approximately $297,293,000. Bank of America Corp DE acquired a new position in shares of Sandisk during the 3rd quarter worth $190,425,000. AQR Capital Management LLC acquired a new stake in shares of Sandisk in the 3rd quarter valued at approximately $163,057,000. Finally, Polar Capital Holdings Plc acquired a new position in shares of Sandisk during the third quarter worth $146,143,000.

Analyst Ratings Changes

Several equities analysts have recently weighed in on SNDK shares. Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $650.00 price objective on shares of Sandisk in a research note on Friday. JPMorgan Chase & Co. began coverage on Sandisk in a research report on Monday, December 8th. They issued a “neutral” rating and a $235.00 target price on the stock. Benchmark boosted their price target on Sandisk from $260.00 to $450.00 and gave the company a “buy” rating in a report on Thursday, January 15th. Zacks Research cut shares of Sandisk from a “strong-buy” rating to a “hold” rating in a report on Thursday, January 22nd. Finally, Fox Advisors upgraded shares of Sandisk from a “hold” rating to a “strong-buy” rating in a research report on Friday, November 7th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $490.60.

Key Sandisk News

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Blowout Q2 results — Sandisk reported roughly $3.02B in Q2 revenue and materially beat EPS estimates, driven by datacenter/AI demand and improved product mix; the strong report is cited across press releases and earnings write-ups. BusinessWire: Q2 Results
• Positive Sentiment: Blockbuster forward guidance — management issued Q3 guidance that far exceeded Street expectations (revenue guidance ~ $4.4–$4.8B and EPS guidance well above consensus), signaling continued AI-driven NAND demand and prompting the sharp re-rate. Reuters: Forecast
• Positive Sentiment: Secured supply extension — Sandisk and Kioxia extended their Yokkaichi joint-venture agreement through 2034, reducing medium-term supply risk for NAND capacity and supporting the growth outlook. BusinessWire: JV Extension
• Positive Sentiment: Analyst upgrades and higher price targets — multiple firms raised ratings/targets (examples: Wedbush and Mizuho increases cited), citing durable NAND pricing tailwinds and AI demand, which supports continued upside. Benzinga: Analyst Coverage
• Neutral Sentiment: Wider market and media attention — major outlets (Barron’s, Investopedia, Seeking Alpha) are spotlighting Sandisk as one of the top post-spinoff performers and highlighting the earnings/guidance story; increased coverage can amplify flows but also volatility. Barron’s: Spinoff Coverage
• Negative Sentiment: Valuation and volatility risk — the stock has posted an extraordinary run, creating high implied expectations; options and leverage activity suggest elevated short-term volatility and a risk of sharp pullbacks if growth or pricing signals cool. Yahoo Finance: Options/Volatility

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.