SanDisk Earnings: AI Investment Logic & Cycle Anxiety
SanDisk beat big on revenue and margins, yet stock fell on guidance miss and cycle peak fears. AI storage demand vs market anxiety.
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SanDisk(SNDK 0.00%↑) delivered a set of financial results that would be considered explosive in any industry.
Q4 revenue was about $9 billion, up 372% year-over-year, beating the market expectation of $8.394 billion. Adjusted EPS came in at $39.25, roughly 14% higher than the expected $34.45. Gross margin hit 84.6%, more than triple the 26.4% from a year ago.
Full-year revenue reached $20.248 billion, up 175% year-over-year. GAAP net income was $11.433 billion, compared with a loss of $1.641 billion in the prior year. Data center revenue for the full year grew 437% to $5.153 billion.
The board also approved a new $14 billion share repurchase program, bringing the total remaining authorization to $15.5 billion.
Every single metric is at a crushing level.
Yet the stock fell as much as 9.6% after hours.
It had already dropped 5.4% during regular trading hours. After the results were released, the after-hours session delivered another blow.
There are two main reasons for the decline.
Let’s start with the first and most direct one—the guidance.
SanDisk guided for fiscal 2027 first-quarter revenue of $10.3–10.8 billion, with a midpoint of $10.55 billion.
