Sandisk Shares Surge After Blockbuster Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 31 2026
0mins
Source: Fool
- Revenue Surge: Sandisk reported a remarkable 61% year-over-year revenue increase to $3 billion in its fiscal second quarter, highlighting its strong market performance amid soaring demand for AI data storage, thereby reinforcing its leadership in high-performance storage solutions.
- Gross Margin Improvement: The company's gross margin jumped by 18.6 percentage points to 51%, indicating not only enhanced pricing power but also its ability to significantly improve profitability in a supply-demand imbalance scenario.
- Net Income Explosion: Sandisk's adjusted net income skyrocketed by 443% to $967 million, translating to $6.20 per share, far exceeding analysts' expectations of $3.54, showcasing the company's robust profitability in a high-demand environment.
- Optimistic Outlook: Management guided for third-quarter revenue between $4.4 billion and $4.8 billion, with adjusted earnings per share projected at $12 to $14, indicating a strong potential for disciplined growth underpinned by sustained demand and supply alignment strategies.
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Analyst Views on SNDK
Wall Street analysts forecast SNDK stock price to fall
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 1589.940
Low
220.00
Averages
283.69
High
410.00
Current: 1589.940
Low
220.00
Averages
283.69
High
410.00
About SNDK
SanDisk Corporation is a developer, manufacturer and provider of data storage devices and solutions based on NAND flash technology and has consumer brands and franchises globally. The Company's solutions include a range of solid state drives (SSDs) embedded products, removable cards, universal serial bus (USB) drives, and wafers and components. Its broad portfolio of technology and products addresses multiple end markets of Datacenter, Edge and Consumer. Its Datacenter end market is composed primarily of products for public or private cloud environments and enterprise customers. The Company, through the Edge end market, provides original equipment manufacturer and channel customers a broad array of high-performance flash solutions across personal computer, mobile, gaming, automotive, virtual reality headsets, at-home entertainment, and industrial spaces. The Company serves the Consumer end market with a broad range of retail and other end-user products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- ETF Unit Trading Mechanism: ETFs trade like stocks, where investors are actually buying and selling 'units' that can be created or destroyed based on investor demand, impacting the liquidity and market performance of the ETF.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify ETFs experiencing significant inflows or outflows, where inflows necessitate purchasing underlying assets, while outflows may lead to selling, thus affecting the performance of individual stocks held within the ETFs.
See More
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- Market Potential: The total addressable market for high bandwidth memory is expected to grow by 90% between 2025 and 2028, driven by favorable content and pricing factors, indicating strong growth prospects in the coming years.
- Sustained NAND Demand: Mizuho noted that NAND demand has not slowed, with eSSD/KV Cache expected to tighten by 2027, indicating ongoing market demand for high-performance storage solutions.
See More
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- Surge in AI Compute Needs: As large language models (LLMs) become more complex, their memory requirements are increasing, resulting in a global shortage of dynamic random access memory and NAND flash memory, which further drives demand for Sandisk's products.
- High-Bandwidth Flash Technology: Sandisk is developing high-bandwidth flash (HBF), expected to be critical for inference, with samples available by the end of this year and full product launch anticipated next year, enhancing its competitive edge in AI computing.
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See More
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- New Business Models: Sandisk has signed five multi-year supply contracts with remaining performance obligations totaling approximately $42 billion, covering over a third of its bit supply for fiscal 2027, demonstrating a strategic shift towards high-value customers.
- Future Product Catalyst: Management plans to begin shipping QLC Stargate solid-state drives designed for high-density AI workloads in fiscal Q4 2026, which is expected to further drive revenue growth and enhance competitive positioning.
See More
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- Data Center Revenue Surge: Data center revenue hit $1.47 billion, reflecting a 233% sequential increase and approximately 645% year-over-year growth, showcasing the company's strategic redirection of bit supply towards high-value customers, enhancing its competitive edge in a rapidly evolving market.
- Long-Term Contract Guarantees: The company has signed five multi-year customer contracts totaling over $11 billion, securing more than a third of its bit supply for fiscal 2027, demonstrating customer trust in Sandisk's consistent supply capabilities.
- Share Repurchase Program: Sandisk recently authorized a $6 billion share repurchase program, further boosting market confidence in the company's future cash flows and profitability, while also reflecting management's optimistic outlook on long-term growth prospects.
See More
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- Profitability Milestone: The company's non-GAAP gross margin exceeded 50% for the first time, reaching 50.5%, up from 40% a year ago and 46.1% in the prior quarter, demonstrating successful cost control and pricing strategies.
- Dividend Increase: The board approved a 20% increase in the quarterly cash dividend to $0.15 per share, reflecting confidence in future growth, marking the second hike in six months, resulting in a cumulative increase of 50%.
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