Sandisk (NASDAQ:SNDK) Releases Earnings Results, Beats Estimates By $5.97 EPS

Sandisk (NASDAQ:SNDK) posted its quarterly earnings results on Wednesday. The data storage provider reported $39.25 EPS for the quarter, beating the consensus estimate of $33.28 by $5.97, FiscalAI reports. Sandisk had a net margin of 56.47% and a return on equity of 96.94%. The firm had revenue of $8.96 billion for the quarter. During the same quarter in the previous year, the business posted $0.29 EPS. The company’s quarterly revenue was up 371.6% on a year-over-year basis. 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 Stock Down 2.0%

SNDK stock traded down $25.54 during mid-day trading on Friday, reaching $1,233.04. The company had a trading volume of 11,487,179 shares, compared to its average volume of 16,523,252. Sandisk has a one year low of $41.00 and a one year high of $2,354.39. The stock has a market capitalization of $182.60 billion, a P/E ratio of 16.90 and a beta of 5.20. The stock’s 50-day simple moving average is $1,709.64 and its two-hundred day simple moving average is $1,147.93.

Sandisk News Roundup

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Sandisk reported fiscal fourth-quarter adjusted earnings of $39.25 per share and approximately $8.97 billion in revenue, substantially exceeding analyst estimates. Revenue increased 371.6% year over year, driven by stronger pricing, higher volumes and rapid data-center growth. SNDK Q4 Earnings Beat Estimates
• Positive Sentiment: AI-related demand remains the core bullish catalyst. Data-center revenue reportedly surged 437% in fiscal 2026, while long-term customer agreements and financial guarantees totaling roughly $94 billion could improve revenue visibility and reduce exposure to NAND’s traditional boom-bust cycle. Sandisk AI Guarantees
• Positive Sentiment: Sandisk authorized a $14 billion share-repurchase program, representing the potential repurchase of up to 6.6% of outstanding shares. The buyback may support per-share earnings and signals management’s confidence in the company’s valuation and cash generation. Sandisk Buyback and Earnings
• Neutral Sentiment: Several analysts remain bullish, with recent commentary describing the memory cycle as near a bottom and AI storage as a structural growth market. However, published price targets vary widely, reflecting unusually high volatility and uncertainty after the stock’s sharp rally.
• Negative Sentiment: Fiscal first-quarter 2027 revenue guidance of $10.3 billion to $10.8 billion was viewed as soft relative to elevated Wall Street expectations, even though projected EPS of $44 to $46 exceeded consensus. Investors interpreted the outlook as evidence that growth and pricing may be moderating. Sandisk Quarterly Guidance
• Negative Sentiment: Analysts and investors are concerned that current margins may not be sustainable as Sandisk gives up some near-term margin to secure longer-term strategic customer agreements. Jefferies cut its price target to $1,750 from $3,000 while maintaining a Buy rating, underscoring the valuation and NAND-pricing risks.

Sandisk declared that its board has initiated a share buyback plan on Wednesday, August 5th that authorizes the company to buyback $14.00 billion in shares. This buyback authorization authorizes the data storage provider to reacquire up to 6.6% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on SNDK. Wedbush increased their price target on Sandisk from $1,200.00 to $2,000.00 and gave the company an “outperform” rating in a report on Thursday, July 9th. Sanford C. Bernstein reiterated an “outperform” rating on shares of Sandisk in a report on Thursday. Arete Research upgraded Sandisk from a “hold” rating to a “strong-buy” rating in a report on Monday, April 13th. Bank of America lifted their price objective on shares of 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, Melius Research set a $2,350.00 target price on shares of Sandisk in a research note on Monday, May 18th. Three investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, Sandisk currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,853.14.

Insider Buying and Selling

In related news, insider Bernard Shek sold 600 shares of the stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $1,162.16, for a total value of $697,296.00. Following the completion of the transaction, the insider directly owned 30,915 shares of the company’s stock, valued at $35,928,176.40. This represents a 1.90% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Alper Ilkbahar sold 2,000 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $1,756.58, for a total value of $3,513,160.00. Following the completion of the sale, the executive vice president owned 52,677 shares in the company, valued at approximately $92,531,364.66. This represents a 3.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 6,246 shares of company stock valued at $9,993,292 in the last quarter. Company insiders own 0.21% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Dogwood Wealth Management LLC lifted its position in shares of Sandisk by 14.3% in the 2nd quarter. Dogwood Wealth Management LLC now owns 48 shares of the data storage provider’s stock valued at $109,000 after acquiring an additional 6 shares in the last quarter. Castle Rock Wealth Management LLC increased its holdings in shares of Sandisk by 2.4% in the 2nd quarter. Castle Rock Wealth Management LLC now owns 426 shares of the data storage provider’s stock valued at $969,000 after purchasing an additional 10 shares during the period. Legacy Wealth Asset Management LLC lifted its position in shares of Sandisk by 1.6% in the second quarter. Legacy Wealth Asset Management LLC now owns 772 shares of the data storage provider’s stock worth $1,755,000 after purchasing an additional 12 shares in the last quarter. GHP Investment Advisors Inc. lifted its position in shares of Sandisk by 12.0% in the first quarter. GHP Investment Advisors Inc. now owns 121 shares of the data storage provider’s stock worth $77,000 after purchasing an additional 13 shares in the last quarter. Finally, Versant Capital Management Inc boosted its holdings in shares of Sandisk by 2.5% during the second quarter. Versant Capital Management Inc now owns 527 shares of the data storage provider’s stock worth $1,198,000 after purchasing an additional 13 shares during the period.

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.