SanDisk Q4 2026 Revenue Surges 372%, but SNDK Stock Declines After Earnings

SanDisk announced record fiscal year 2026 fourth-quarter results. Demand for AI data centers, rising NAND prices, and an improved product mix drove revenue and profits significantly above Wall Street expectations. However, SNDK shares declined after hours as investors had already priced in extremely high growth expectations and were seeking even more impressive guidance.

SanDisk announced its fourth quarter and full-year fiscal year 2026 results after the close of U.S. markets on August 5, 2026. The quarter ended on July 3. Investors can review the company’s official fiscal year 2026 fourth quarter earnings presentation materials and investor relations page for complete financial statements, presentation materials, and conference call resources.

Yes. Sandisk reported quarterly revenue of $8.965 billion, a 51% sequential increase and a 372% year-over-year increase, exceeding the LSEG survey analyst expectation of approximately $8.39 billion. Non-GAAP diluted earnings per share reached $39.25, above the LSEG expectation of approximately $34.45. Non-GAAP gross margin rose to 84.6%, and adjusted free cash flow was approximately $5.04 billion. The quarterly results also surpassed Sandisk’s prior guidance, which had forecast revenue of $7.75 billion to $8.25 billion and adjusted earnings per share of $30 to $33. Sandisk reported GAAP earnings per share of $43.97, which included approximately $804 million in equity securities gains. To assess the company’s underlying operating performance, the non-GAAP earnings per share of $39.25 is the more relevant metric.

SanDisk's growth stems from both increased sales volume and a significant rise in NAND prices. Management stated that approximately one-third of the sequential revenue increase this quarter came from higher sales volume, while the remaining two-thirds resulted from price increases. This is critical: SanDisk is benefiting from growing AI storage demand, but the rapid improvement in revenue and margins also reflects tight NAND supply and higher average selling prices.

Data center revenue more than doubled

Data center business revenue reached $2.977 billion, representing a 103% sequential increase and a 1,298% year-over-year increase. Sandisk stated that data center products accounted for 38% of the company’s bit shipments this quarter, compared to just 12% a year ago. The company is increasing shipments of enterprise-grade solid-state drives to hyperscale cloud and AI infrastructure customers. AI training and inference systems require large volumes of data to be stored, read, and processed with low latency. This demand is driving sales of high-capacity enterprise SSDs and other flash storage products.

Edge business remains the largest source of revenue.

Edge's offerings include products for personal computers, smartphones, tablets, automotive systems, and other devices. This quarter, Edge revenue reached $5.432 billion, representing a 48% sequential increase and a 392% year-over-year growth. Management expects that AI PCs, premium smartphones, and edge AI applications will gradually increase the storage capacity required per device.

Consumer business revenue declined

Consumer business revenue decreased to $556 million, down 32% sequentially and 5% year-over-year.

This indicates that Sandisk's current growth is not evenly distributed across all business segments. Data center and Edge products are driving overall expansion, while storage cards, portable hard drives, and other consumer products remain more vulnerable to weak discretionary consumer demand.

SanDisk expects revenue for the first quarter of fiscal year 2027 to range between $10.3 billion and $10.8 billion. The company also anticipates non-GAAP diluted earnings per share of $44 to $46, a non-GAAP gross margin of 83% to 85%, and non-GAAP operating expenses of $520 million to $540 million. Based on the midpoint of the guidance, this translates to revenue of $10.55 billion and adjusted earnings per share of $45, both exceeding LSEG’s expectations of approximately $10.47 billion in revenue and $43.12 in earnings per share. However, Reuters notes that this profit guidance falls below forecasts from some other data providers. A more accurate conclusion is that SanDisk has issued another strong guidance, but it does not surpass all high-end market expectations.

Despite Sandisk exceeding expectations and continuing revenue growth, SNDK shares fell nearly 8% in after-hours trading. This market reaction reflects expectations more than weak quarterly performance. Prior to the earnings report, Sandisk’s stock had already risen nearly 470% in 2026. After such a substantial increase, investors anticipated guidance that would surpass even the most optimistic forecasts. A slight expected decline in gross margin also drew market attention: Sandisk’s adjusted gross margin for the fourth quarter was 84.6%, but guidance for the next quarter is 83% to 85%. While this level remains very high, it does not signal significant sequential gross margin expansion. Therefore, the stock decline does not change the fact that Sandisk exceeded market expectations this quarter—it reflects the difficulty of sustaining higher expectations for a rapidly rising stock after strong AI demand, NAND price increases, and margin expansion have already been priced in.

Sandisk is shifting more of its business from short-term purchasing arrangements to multi-year customer agreements. The company stated that its agreements with eight data center and edge customers correspond to a minimum contract revenue of $93.9 billion under minimum price conditions. These agreements have a weighted average term of more than four years and include approximately $16.5 billion in financial guarantees. Sandisk expects that about half of its bit supply in fiscal year 2027 will be covered by these agreements, rising to about two-thirds in fiscal year 2028. The contracts feature both fixed and floating pricing, along with price floors and ceilings to provide enhanced protection amid market price fluctuations. These agreements cannot eliminate all risks associated with the NAND cycle. Customer demand, contract execution, new industry capacity, and future pricing environments remain critically important. However, compared to traditional quarterly purchasing models, long-term agreements may provide Sandisk with greater demand visibility and more stable cash flows. Sandisk has also increased its share repurchase program by $14 billion. The company repurchased approximately $4.5 billion in shares during the fourth quarter and currently has approximately $15.5 billion remaining in authorized repurchase capacity.

SanDisk will hold its Investor Day on August 13, 2026. The company may provide further details during the event on its fiscal 2027 strategy, long-term financial targets, and AI data center storage plans. Key issues to watch include: whether enterprise SSD demand can continue to grow faster than SanDisk’s available supply, whether current NAND prices are sustainable, and whether the company can maintain gross margins near current levels after expanding production. Investors should also monitor the ramp-up of BiCS8 and BiCS10 NAND technology capacity, the economics of new long-term agreements, and the balance between data center growth and weak consumer demand.

When will SanDisk announce its fourth-quarter fiscal year 2026 earnings report?

SanDisk will report its fourth-quarter fiscal year 2026 earnings after the U.S. market close on August 5, 2026. The fiscal quarter ended on July 3.

Did SanDisk exceed market performance expectations?

Yes. The company's revenue of $8.965 billion and adjusted EPS of $39.25 both exceeded the consensus estimates reported by Refinitiv.

Why did SanDisk's stock price decline after the earnings report?

SNDK's stock price declined because, although the company provided strong guidance, it did not exceed all market expectations. Meanwhile, the stock has already risen nearly 470% this year. The market's reaction primarily reflects extremely high expectations, rather than disappointing performance.

What is SanDisk's guidance for next quarter?

SanDisk expects revenue of $10.3 billion to $10.8 billion for the first quarter of fiscal year 2027, with non-GAAP diluted earnings per share of $44 to $46.

When is SanDisk Investor Day?

SanDisk Investor Day is scheduled for August 13, 2026, at 9:00 AM Eastern Time.