US Storage Stocks Fall as SanDisk, Western Digital Guidance Disappoints
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On August 6, Eastern Time, U.S. storage stocks declined sharply after SanDisk and Western Digital issued cautious forward guidance. Despite both companies surpassing Q4 fiscal 2026 revenue and earnings expectations, their outlook failed to satisfy aggressive market forecasts. SanDisk’s revenue guidance of $10.55 billion and EPS of $45.00 fell short of analyst estimates, while Western Digital’s projections similarly disappointed investors. This performance triggered a sectoral sell-off, with Western Digital and SanDisk shares dropping 14% and 8% respectively, further pressuring peers including SK Hynix and Micron Technology amidst concerns over sector valuation and growth momentum.
TradingKey - SanDisk and Western Digital's results beat expectations but guidance fell short, causing their stock prices to plunge and dragging down other storage stocks.
On August 6, Eastern Time, the U.S. storage sector fell collectively premarket. Among them, Western Digital ( WDC) fell nearly 14%, while SanDisk ( SNDK) tumbled over 8%, SK Hynix ( SKHY) fell about 6%, and Micron Technology ( MU) fell over 3%.
Western Digital stock price chart, Source: TradingView
Yesterday, both SanDisk and Western Digital released their fourth-quarter fiscal year 2026 financial results. Although both current-quarter revenue and earnings exceeded market expectations, their guidance for the next quarter failed to meet Wall Street's extremely high expectations, triggering a sharp plunge in stock prices and dragging down the entire U.S. storage and memory sector.
According to the financial report, SanDisk's quarterly revenue was $8.97 billion, beating the expected $8.4 billion; adjusted EPS was $39.25, higher than the expected $34.37. The midpoint of the revenue guidance was $10.55 billion, lower than the $11.16 billion expected by analysts; the midpoint of the EPS guidance was $45.00, also below the expected $45.58.
Western Digital's quarterly revenue reached $3.75 billion, higher than the market expectation of $3.69 billion; adjusted EPS was $3.56, also beating the expected $3.29. The midpoint of the revenue guidance was $4.10 billion, and the midpoint of the EPS guidance was $4.00, meeting most market expectations but failing to reach the extremely high expectations driven by strong market upward revisions.
This content was translated using AI and reviewed for clarity. It is for informational purposes only.
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