SanDisk Fiscal Fourth-Quarter Revenue Beats Estimates, Rising 372% to $8.965 Billion

Tradingkey - On August 5, Eastern Time, SanDisk ( SNDK) released its fiscal fourth quarter 2026 earnings report during post-market trading. Following the announcement, SanDisk's stock price once fell over 8%, but as of press time, the gain narrowed to around 4%, trading at $1,287.67.

During the period, SanDisk's revenue increased by 372% year-on-year to $8.965 billion, exceeding market expectations of $8.394 billion; it grew 51% quarter-on-quarter. The company stated that about one-third of the sequential growth came from shipment increases, and about two-thirds from price increases.

Gross margin reached as high as 84.6%, up 58.4 percentage points year-on-year and 6.2 percentage points quarter-on-quarter.

Source: TradingView

By end market, Edge business revenue was $5.432 billion, up 48% quarter-on-quarter and 392% year-on-year; Datacenter business revenue was $2.977 billion, soaring 103% quarter-on-quarter compared to just $213 million in the same period last year, and has become a key growth pillar for the company; Consumer business revenue was $556 million, down 32% quarter-on-quarter and 5% year-on-year.

Source: SanDisk's Fiscal 2026 Fourth Quarter Financial Results

On the profitability side, under GAAP, SanDisk's fourth-quarter net income was $6.903 billion, compared to a net loss of $23 million in the same period last year; diluted EPS was $43.97, compared to a loss of $0.16 per share in the prior-year period. Under non-GAAP, net income was $6.162 billion, and adjusted EPS was $39.25, higher than the market estimate of $34.45, beating expectations by about 14%.

For the full year, fiscal year 2026 revenue increased 175% year-on-year to $20.248 billion; GAAP net income was $11.433 billion, compared to a net loss of $1.641 billion in the previous fiscal year, corresponding to diluted EPS of $73.76; non-GAAP adjusted EPS was $70.88. By market, full-year Datacenter revenue increased 437% year-on-year to $5.153 billion, and Edge business revenue increased 195% year-on-year to $12.16 billion.

In terms of business progress, following the announcement of five new business model (NBM) agreements during the April earnings call, the company signed another five new agreements during the period, three of which were with new customers and two were expansions of existing agreements. Regarding shareholder returns, the board of directors approved an additional $14 billion share buyback program, bringing the total remaining buyback authorization to $15.5 billion.

Regarding guidance, SanDisk expects revenue for the first quarter of fiscal year 2027 to be between $10.3 billion and $10.8 billion, with a midpoint of $10.55 billion; non-GAAP gross margin is expected to be 83.0%-85.0%; non-GAAP diluted EPS is expected to be $44 to $46.

David Goeckeler, the company's Chairman and CEO, stated: "We closed fiscal year 2026 with a leading technology portfolio, establishing Datacenter as a key growth pillar and deepening customer partnerships. Our technology and products are well-positioned to deliver value to our customers and generate growing and sustainable free cash flow."