Sandisk plunges 7% after earnings as guidance falls short of investor expectations
Sandisk shares fell around 7% in extended trading Wednesday after the company reported stronger than expected fiscal fourth quarter earnings, as investors focused on a revenue outlook that fell short of elevated Wall Street forecasts.
The decline followed a 5.4% drop during regular trading, extending the stock’s recent retreat after a sharp rally driven by demand for storage products used in artificial intelligence infrastructure. Sandisk shares were still up more than 400% in 2026 before the earnings release.
Sandisk reported fiscal fourth quarter revenue of $8.97 billion, up 51% sequentially and 372% from the same period last year. Revenue surpassed the $8.48 billion expected by analysts.
Adjusted earnings reached $39.25 per diluted share, compared with Wall Street expectations of $34.96. GAAP net income totaled $6.90 billion, or $43.97 per diluted share.
Sandisk said approximately one third of the sequential revenue growth came from higher volumes, while two thirds came from higher pricing. Gross margin increased to 84.6% from 78.4% in the previous quarter.
The company’s data center business generated $2.98 billion in revenue, up 103% sequentially and above analyst estimates of approximately $2.74 billion. Edge revenue rose 48% from the previous quarter to $5.43 billion, while consumer revenue fell 32% to $556 million.
For the fiscal first quarter of 2027, Sandisk expects revenue between $10.3 billion and $10.8 billion. The midpoint of $10.55 billion came in below Wall Street expectations of approximately $10.8 billion.
The company forecast adjusted earnings between $44 and $46 per share. The midpoint of that range was slightly above the $44.72 expected by analysts, but the outlook was not strong enough to meet expectations following Sandisk’s significant stock rally.
Sandisk also expanded its share repurchase authorization by $14 billion, bringing its total remaining authorization to $15.5 billion. The company repurchased approximately $4.52 billion of stock during fiscal 2026.
The company signed five additional New Business Model agreements following its April earnings report, including agreements with three new customers and expansions of two existing deals. Sandisk has now signed ten such agreements as it seeks to secure long term customer demand and reduce exposure to swings in memory pricing.
For the full fiscal year, revenue rose 175% to $20.25 billion, while GAAP net income reached $11.43 billion. Data center revenue increased 437% to $5.15 billion, reflecting growing demand for storage capacity from AI infrastructure customers.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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