Sandisk 2025 Q3 Earnings Misses Targets as Net Income Falls Dramatically
Tuesday, May 13, 2025 5:39 am ET
3min read Sandisk (SNDK) reported its fiscal 2025 Q3 earnings on May 12th, 2025. The company faced a challenging quarter as revenue decreased slightly by 0.6% compared to the same period last year. Sandisk's net income significantly declined, resulting in a record loss per share. The guidance for the fourth quarter indicates cautious optimism, with potential improvement in earnings expected. Despite the disappointing results, Sandisk's focus on innovation and strategic adjustments remains unwavering, as CEO David Goeckeler emphasized the company's commitment to aligning supply with demand and enhancing technological capabilities.
Revenue
Sandisk's revenue for fiscal 2025 Q3 decreased by 0.6% to $1.70 billion from $1.71 billion in 2024 Q3. The cloud segment generated $197 million, while the client sector contributed $927 million. Meanwhile, the consumer segment added $571 million, culminating in a total revenue of $1.70 billion.
Earnings/Net Income
Sandisk experienced a drastic swing to a loss of $13.33 per share in 2025 Q3, compared to a profit of $0.19 per share in 2024 Q3, marking a negative change of 7115.8%. The company reported a net loss of $1.93 billion, signifying a severe deterioration from the previous net income of $27 million. The EPS results indicate a concerning financial performance.
Price Action
The stock price of Sandisk edged up 0.32% during the latest trading day, surged 19.24% during the most recent trading week, and jumped 12.82% month-to-date.
Post-Earnings Price Action Review
Over the past five years, purchasing Sandisk shares after a revenue increase on the financial report release date and holding them for 30 days has proven to be a successful strategy. This approach has yielded an annualized return of 28.31%, outperforming the market by 13.02%. The compounding effect was evident as an initial $100 investment grew to $348.60. This strategy underscores the potential benefits of holding onto shares post-revenue increase, highlighting the long-term advantages of capitalizing on positive earnings announcements.
CEO Commentary
“I’m pleased with our team’s execution in the first quarter as a standalone company. SanDisk’s innovation was reinforced, with a strong early ramp of BiCS 8, our latest technology engineered to deliver industry-leading performance, power efficiency, and density,” said David Goeckeler, SanDisk CEO. Goeckeler emphasized the importance of aligning supply with demand and noted actions taken to increase prices this quarter, reflecting a strategic priority to maximize returns. Despite facing challenges, he expressed optimism about the company's innovation and strategic adjustments, positioning it for future recovery and growth.
Guidance
SanDisk expects fourth-quarter 2025 revenue to be between $1.75 billion and $1.85 billion. The company anticipates Non-GAAP earnings per share to range from a loss of $0.10 to a gain of $0.15, indicating a potential shift towards profitability. The guidance reflects a cautious yet positive outlook, driven by strategic management of supply and demand dynamics.
Additional News
Sandisk announced its official separation from Western Digital on February 24, 2025, and began trading as an independent company on the Nasdaq Stock Market under the ticker symbol “SNDK.” CEO David Goeckeler remarked on the company's focus on innovation and its readiness to leverage its strengths for long-term growth. Additionally, Sandisk management is set to participate in the 53rd Annual J.P. Morgan Global Technology, Media, and Communications Conference on May 13, 2025, providing insights into its strategic direction and future opportunities.
Revenue
Sandisk's revenue for fiscal 2025 Q3 decreased by 0.6% to $1.70 billion from $1.71 billion in 2024 Q3. The cloud segment generated $197 million, while the client sector contributed $927 million. Meanwhile, the consumer segment added $571 million, culminating in a total revenue of $1.70 billion.
Earnings/Net Income
Sandisk experienced a drastic swing to a loss of $13.33 per share in 2025 Q3, compared to a profit of $0.19 per share in 2024 Q3, marking a negative change of 7115.8%. The company reported a net loss of $1.93 billion, signifying a severe deterioration from the previous net income of $27 million. The EPS results indicate a concerning financial performance.
Price Action
The stock price of Sandisk edged up 0.32% during the latest trading day, surged 19.24% during the most recent trading week, and jumped 12.82% month-to-date.
Post-Earnings Price Action Review
Over the past five years, purchasing Sandisk shares after a revenue increase on the financial report release date and holding them for 30 days has proven to be a successful strategy. This approach has yielded an annualized return of 28.31%, outperforming the market by 13.02%. The compounding effect was evident as an initial $100 investment grew to $348.60. This strategy underscores the potential benefits of holding onto shares post-revenue increase, highlighting the long-term advantages of capitalizing on positive earnings announcements.
CEO Commentary
“I’m pleased with our team’s execution in the first quarter as a standalone company. SanDisk’s innovation was reinforced, with a strong early ramp of BiCS 8, our latest technology engineered to deliver industry-leading performance, power efficiency, and density,” said David Goeckeler, SanDisk CEO. Goeckeler emphasized the importance of aligning supply with demand and noted actions taken to increase prices this quarter, reflecting a strategic priority to maximize returns. Despite facing challenges, he expressed optimism about the company's innovation and strategic adjustments, positioning it for future recovery and growth.
Guidance
SanDisk expects fourth-quarter 2025 revenue to be between $1.75 billion and $1.85 billion. The company anticipates Non-GAAP earnings per share to range from a loss of $0.10 to a gain of $0.15, indicating a potential shift towards profitability. The guidance reflects a cautious yet positive outlook, driven by strategic management of supply and demand dynamics.
Additional News
Sandisk announced its official separation from Western Digital on February 24, 2025, and began trading as an independent company on the Nasdaq Stock Market under the ticker symbol “SNDK.” CEO David Goeckeler remarked on the company's focus on innovation and its readiness to leverage its strengths for long-term growth. Additionally, Sandisk management is set to participate in the 53rd Annual J.P. Morgan Global Technology, Media, and Communications Conference on May 13, 2025, providing insights into its strategic direction and future opportunities.
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