Sandisk Corporation
SNDK · Nasdaq
Next quarter
Reports Nov 5, 2026.
Consensus is $45.22 EPS for Sep 2026 across 4 estimates, ranging $44.81 to $45.42.
SNDK Jun 2026
- 16.65%
- -6.81%
- $33.28
- $38.82
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Highlights
- Quarterly surge: Fiscal Q4 revenue was $8.97 billion, up 51% sequentially and 372% year over year, with roughly one-third of the sequential increase from volume and two-thirds from pricing.
- Earnings beat: Reported EPS was $38.82 versus consensus of $33.28, a 16.65% surprise; the release reported GAAP diluted EPS of $43.97 and non-GAAP diluted EPS of $39.25.
- Datacenter acceleration: Datacenter revenue more than doubled sequentially to $2.98 billion, up 103%, while fiscal 2026 datacenter revenue reached $5.15 billion, up 437% year over year.
- Broad market growth: Edge revenue rose 48% sequentially to $5.43 billion and 392% year over year, while Consumer revenue fell 32% sequentially to $556 million.
- Margin expansion: GAAP gross margin increased 6.2 percentage points sequentially to 84.6%, driving operating income up 71% to $7.04 billion and GAAP net income up 91% to $6.90 billion.
- Forward momentum: Fiscal Q1 2027 revenue guidance is $10.30 billion-$10.80 billion, with non-GAAP diluted EPS guidance of $44.00-$46.00 and gross margin guidance of 83.0%-85.0%.
- New customer commitments: Sandisk signed five additional New Business Model agreements since the April earnings call, including three with new customers and two expansions of existing agreements.
- Capital returns and cash: The board authorized another $14 billion of buybacks, leaving $15.5 billion of authorization; fiscal-year operating cash flow was $11.67 billion and adjusted free cash flow was $8.74 billion.
Analysis
Sandisk's fiscal fourth quarter was a much stronger result than either the prior quarter or the year-ago period. Revenue rose 51% sequentially to $8.97 billion from $5.95 billion and increased 372% from $1.90 billion a year earlier. The supplied earnings comparison shows EPS of $38.82 versus consensus of $33.28, a 16.65% beat; the release reports $43.97 of GAAP diluted EPS and $39.25 on a non-GAAP basis, versus $23.03 and $23.41, respectively, in the prior quarter. GAAP net income was $6.90 billion, compared with $3.62 billion previously and a $23 million loss last year.
The print was defined by pricing-led growth, datacenter scale-up and exceptional profitability. Management attributed approximately two-thirds of sequential revenue growth to higher pricing, with datacenter revenue up 103% sequentially to $2.98 billion and Edge up 48% to $5.43 billion. Gross margin expanded to 84.6% from 78.4%, lifting non-GAAP operating income 68% to $7.10 billion. The outlook calls for another 15%-20% sequential revenue increase in fiscal Q1, while ten New Business Model agreements are now in place. Sandisk also paired the operating performance with $7.08 billion of quarterly free cash flow and a new $14 billion repurchase authorization.
Datacenter and edge growth
The quarter's central operating story was the rapid expansion of higher-value datacenter demand alongside continued strength in Edge. Datacenter revenue reached $2.98 billion, up 103% sequentially from $1.47 billion and sharply above $213 million a year earlier. Fiscal-year datacenter revenue was $5.15 billion, up 437% year over year. Edge remained the larger business at $5.43 billion, up 48% sequentially and 392% year over year. Together, the two markets represented 94% of quarterly revenue, while Consumer declined 32% sequentially to $556 million.
- Mix shift: Fiscal 2026 revenue from datacenter and Edge was $17.31 billion, or approximately 85% of the $20.25 billion total, versus $5.09 billion of $7.36 billion in fiscal 2025.
- Pricing contribution: Of the 51% sequential revenue increase, management attributed approximately one-third to higher volumes and two-thirds to higher pricing, indicating that the quarter was not simply a shipment-driven recovery.
Margins and earnings
Profitability expanded faster than revenue as pricing and mix flowed through the income statement. GAAP gross margin rose to 84.6% from 78.4% in the prior quarter and 26.2% a year earlier. GAAP operating income increased 71% sequentially to $7.04 billion, while non-GAAP operating income rose 68% to $7.10 billion despite non-GAAP operating expenses increasing 8% to $484 million. GAAP net income included an $804 million gain on equity securities; excluding that and other adjustments, non-GAAP net income was $6.16 billion, up 68% sequentially.
- Annual reset: Fiscal 2026 revenue was $20.25 billion, up 175% year over year, while GAAP gross margin expanded 41.4 percentage points to 71.5%.
- Earnings conversion: Fiscal-year non-GAAP diluted EPS was $70.88 versus $2.99 in fiscal 2025, while GAAP diluted EPS was $73.76 versus a loss of $11.32.
New business agreements
Sandisk continued to build longer-term customer commitments around the demand increase. Since announcing five New Business Model agreements at the April earnings call, it signed five more, bringing the disclosed total to ten. Three of the latest agreements were with new customers and two expanded arrangements already in place. These agreements are strategically important because they can support datacenter growth and customer visibility, although the release does not quantify their expected revenue or timing.
- Cash impact: Fiscal-year adjusted free cash flow was $8.74 billion after excluding $2.48 billion of New Business Model prepayments and deposits, compared with reported free cash flow of $11.49 billion.
- Customer breadth: The latest agreements add three new customers while increasing commitments from two existing customers, broadening the commercial base behind the datacenter ramp.
Fiscal Q1 outlook
Management expects the acceleration to continue into fiscal Q1 2027. Revenue guidance of $10.30 billion-$10.80 billion implies approximately 15%-20% sequential growth from the $8.97 billion fourth-quarter result. Non-GAAP diluted EPS guidance of $44.00-$46.00 is above the quarter's $39.25, even as gross margin is expected to moderate to 83.0%-85.0% from 84.6%. The outlook assumes approximately 155 million diluted shares and non-GAAP operating expenses of $520 million-$540 million.
- Moderating margin, rising earnings: The midpoint of revenue guidance is $10.55 billion, while the midpoint of EPS guidance is $45.00; gross margin is expected to remain above 83% despite the sequential expansion in sales.
- Expense investment: Non-GAAP operating expense guidance rises to $520 million-$540 million from $484 million in Q4, consistent with supporting continued growth while maintaining very high profitability.
Cash returns and balance sheet
The earnings surge translated into substantial cash generation and an aggressive capital-return posture. Quarterly operating cash flow was $7.13 billion and free cash flow was $7.08 billion after $43 million of capital expenditures. Sandisk repurchased $4.52 billion of stock during the quarter, and the board approved an additional $14 billion authorization, leaving total remaining authorization of $15.5 billion. At July 3, 2026, the company held $4.76 billion of cash and cash equivalents, $1.78 billion of marketable equity securities and no long-term debt.
- Fiscal-year cash generation: Operating cash flow was $11.67 billion and free cash flow was $11.49 billion, compared with $84 million and negative $120 million, respectively, in fiscal 2025.
- Liquidity: Total assets were $22.51 billion and total liabilities were $6.77 billion at quarter-end, with shareholders' equity of $15.74 billion.
