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SanDisk

SNDK · NASDAQ

Semiconductors · NAND / Flash Storage

Q4 FY2026 Earnings · Wednesday, August 5Next Earnings: Q1 FY27 · ~late October 2026
Trading Now
$1,686.15+ 8.43%

Since the Report + 34.0%

Close on Report DayAug 5

$1,258.58▼ 6.8%Report-Day Move

Market Cap(Today)
≈ $250 B
1Y Return(At Report)
+ 2,902%
P/E($70.08 · Trailing 12M)
24.1
PEG(forward 12 months)
0.12
Net Margin(Trailing 12M)
56.5%
80/ 100
VerdictBUY

A record quarter beat expectations across the board, yet the stock slid on fears the NAND pricing cycle is nearing its peak and that a ~40% pre-earnings rally had already priced in the good news.

Avg. Analyst Target (23)$2,116.64▲ 68% Upside

  • Revenue (Q4)

    $8.97B

    ▲ 372% YoY

  • Gross Margin

    84.6%

    Record · Guidance Was 79-81%

  • Non-GAAP EPS

    $39.25

    ~12% Above Expectations

  • Datacenter Revenue

    $2.98B

    ▲ 437% YoY

  • Q1 FY27 Guidance

    $10.3-10.8B

    In Line with Expectation

  • Stock Reaction

    -6.8%

    Close to Close

Quarterly Revenue ($ Billion)

ReportedCompany Guidance

  • 1.90

  • 2.31

  • 3.03

  • 5.95

  • 8.97

  • $10.3–10.8B

  • Q4 25
  • Q1 26
  • Q2 26
  • Q3 26
  • Q4 26
  • Q1 27E
Annual Growth
▲ 372%$1.90B → $8.97B
Datacenter Share
33%$2.98B · ▲ 437% YoY
Consumer · Weakest
$556M · ▼ 32%Quarterly Decline

Q1 FY27 Company Guidance

Guidance RangeMarket Expectation
  • Revenue10.3 – 10.8 billion

    Midpoint 10.55 · Market Expectation 10.82Above the Range ▼

  • Earnings Per Share (Adjusted)44 – 46 $

    Midpoint 45.00 · Market Expectation 44.21Above Expectation ▲

  • Gross Margin83% – 85%

    Midpoint 84.0% · 84.6% actual last quarterFlat to Slightly Lower

The blue band is the company's low–high range; its length shows how much room the company left itself. The black triangle and the line beneath it mark where the market expected, and the notch in the band is the range's midpoint. The triangle appears only where a market expectation is known. Axis is ±2.9% around the midpoint.

Free Cash Flow (Q4)
$7.08BOperating Cash Flow $7.13B
Capital Expenditure (Q4)
$43M~0.5% of Revenue
Remaining Buyback Authorization
$15.5BAdditional $14B Program
From the CEODavid GoeckelerChairman & CEO
“We closed fiscal 2026 with a leading technology portfolio, established datacenter as a key growth pillar, and deepened our customer partnerships.”

Summary

SanDisk reported fiscal Q4 2026 revenue of $8.97 billion, up 372% from $1.90 billion a year earlier and 51% sequentially, roughly 5.7% above the market expectation of ~$8.56 billion. Non-GAAP EPS of $39.25 beat estimates by about 12%, while gross margin blew past the company's own 79-81% guidance to set a record of 84.6%. The new engine of growth was the datacenter segment, which alone reached $2.98 billion, up 437% year over year. Full fiscal-year revenue climbed to $20.25 billion, a 175% annual gain.

Even though every metric beat, the stock fell 6.8% on a close-to-close basis after the report (about 7.3% after hours, and as much as ~11% to $1,199 in the next session's pre-market). Two reasons stand out. First, the shares had rallied ~40% in the five days before earnings to break above $1,400, so most of the good news was already in the price. Second, while Q1 FY27 guidance of $10.3-10.8 billion (midpoint ~$10.55 billion) was in line with the ~$10.82 billion market expectation, it fell short of the most aggressive buy-side estimates (~$11.1 billion) and revived worries that the NAND pricing cycle is nearing its top.

The quarter itself was very strong: record margins, beats on every line, and a solid structural datacenter story. The guidance even implies ~18% sequential growth. The only caveat holding the score at 80 is that the margin is driven mostly by NAND pricing rather than volume, with the cycle approaching a peak. The verdict is buy on the quality of the quarter; the sell-off reflects not weakness in the results but a price that had already discounted a great deal of future growth.

Full Review

Claude

The datacenter is now the growth engine.

The most striking figure of the quarter is datacenter revenue reaching $2.98 billion, up 437% year over year and 103% sequentially. This segment now accounts for roughly a third of total revenue and shows how quickly SanDisk is moving away from its classic consumer-dependent memory identity. Edge remained the largest line at $5.43 billion (up 48% sequentially). By contrast, consumer fell 32% sequentially to $556 million, confirming that demand is being driven by AI and the datacenter while classic retail memory stays weak.

Record gross margin, but close to the peak.

Gross margin of 84.6% rose 6.2 points sequentially and comfortably exceeded the company's 79-81% guidance. For a NAND/flash maker that level is extraordinary, and it is fueled largely by price increases in a tight supply environment. Therein lies the concern: most of the gains come from price rather than volume. Price-driven margins are cyclical; when NAND prices peak, margins normalize. That is exactly what the market was questioning on earnings day — how durable today's record profitability really is.

Guidance is strong but below the highest bar.

The company guided Q1 FY27 to $10.3-10.8 billion in revenue and $44.00-46.00 in non-GAAP EPS. The midpoint of $10.55 billion implies ~18% sequential growth — very strong in absolute terms. But the market expectation was ~$10.82 billion, with some buy-side estimates as high as $11.1 billion, and the guidance did not clear that most ambitious bar. Investors were disappointed not by the quarter itself, but by a market that wanted the next quarter to beat expectations by an even wider margin.

The stock fell because the future was priced in.

The shares had climbed ~40% in the five days before earnings to break above $1,400, then pulled back 6.8% close-to-close after the results. The logic of the decline is a case of profit-taking: after the rally the good news was already in the price, and slightly soft guidance, sector-wide skepticism about the return on AI investment, and the sense that the NAND cycle is nearing its top all combined. It is a recurring theme on our pages: even a strong quarter can send a stock lower, because the price may have already discounted future growth (see /rehber/volatilite and /rehber/degerleme).

Strengths

5
  1. Revenue beat by ~5.7% to a record $8.97 billion; up 372% year over year
  2. Gross margin set a record at 84.6% — well above the company's own 79-81% guidance
  3. Datacenter revenue jumped 437% year over year to $2.98 billion; a new and durable growth pillar
  4. Non-GAAP EPS of $39.25 came in ~12% above expectations
  5. Full fiscal-year revenue of $20.25 billion, up 175%; Q1 FY27 guidance implies ~18% sequential growth

Risks

5
  1. Fears the NAND pricing cycle is nearing its peak; most margin gains come from price rather than volume
  2. Consumer segment shrank 32% sequentially to $556 million — demand is uneven
  3. Q1 FY27 guidance midpoint sits slightly below the ~$10.82 billion market expectation; aggressive buy-side looked for $11.1 billion
  4. Analyst targets span a wide range, from Wells Fargo's $1,400 to Susquehanna's $3,050 — high uncertainty
  5. The ~40% pre-earnings rally had priced in most of the good news — near-term profit-taking pressure

What to Watch

3
  1. Q1 FY27 earnings: expected ~late October / early November 2026
  2. NAND spot and contract prices: the key signal for the direction of the cycle through the quarter
  3. Sustainability of datacenter and AI-driven storage demand

Upcoming Earnings

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To Understand This

Earnings Reports: What to Read, HowThe book opens once a quarter — and the market really only reads three lines.P/E and the Valuation RatiosYou can't tell whether a stock is cheap or expensive by looking at its price.