Sandisk 2026 Q1 Earnings Beats Expectations Amid Revenue Surge

Sandisk (SNDK) reported fiscal 2026 Q1 earnings on Nov 8, 2025, with results exceeding expectations. The company’s revenue rose 22.6% year-over-year to $2.31 billion, driven by strong demand in data center segments, while adjusted EPS came in at $1.22, surpassing forecasts. Guidance for Q2 2026 was raised, with revenue projected between $2.55 billion and $2.65 billion and EPS expected to range from $3.00 to $3.40.

Revenue

The company’s total revenue surged 22.6% year-over-year to $2.31 billion, significantly outpacing the $2.15 billion forecast. Data center revenue, a key growth driver, rose 26% sequentially to $269 million, reflecting robust demand from hyperscale clients. The BiCS8 technology accounted for 15% of bits shipped in Q1 and is projected to dominate production by the end of 2026.

Earnings/Net Income

Despite a 47.3% decline in GAAP EPS to $0.77 and a 46.9% drop in net income to $112 million, the company’s non-GAAP EPS of $1.22 beat estimates by $0.34. The earnings shortfall highlights margin pressures but underscores operational resilience amid macroeconomic challenges.

Post-Earnings Price Action Review

Following the report, Sandisk’s stock surged 17% in after-hours trading, reflecting optimism over its guidance and market positioning. Institutional investors, including Osaic Holdings, initiated new positions, while analyst price targets were raised across the board. The stock’s 81.59% month-to-date gain and 20.14% weekly rally signal strong investor confidence, though mixed sentiment persists due to valuation concerns.

CEO Commentary

Dr. Lisa Chen emphasized the company’s strategic focus on AI-driven storage optimization and partnerships with cloud providers. She acknowledged supply chain inflation as a near-term challenge but expressed optimism about long-term growth in enterprise storage and AI infrastructure.

Guidance

Sandisk reiterated Q1 2026 revenue of $2.31 billion and EPS of $0.77, aligning with reported figures. For Q2, the company projected revenue between $2.55 billion and $2.65 billion and non-GAAP EPS of $3.00–$3.40. Long-term plans include a 10% CAPEX reduction by 2027 and maintaining R&D spend above 15% of revenue.

Additional News

1. New Fab2 Facility: Kioxia and Sandisk launched operations at the Kitakami Plant’s Fab2, producing 218-layer 3D flash memory to meet AI-driven demand. Production is expected to ramp in H1 2026.

2. HBF Collaboration: A partnership with SK hynix aims to standardize High Bandwidth Flash (HBF) memory, offering 8–16x capacity over HBM at competitive costs. First samples are slated for H2 2026.

3. Mizuho Conference Participation: Sandisk’s management presented at the Mizuho Technology Conference, reiterating its commitment to AI infrastructure and enterprise storage innovation.

Sandisk’s Q1 results highlight a mix of resilience and strategic momentum, with data center growth and AI partnerships positioning it for long-term gains. However, margin pressures and valuation skepticism remain critical watchpoints for investors.