SanDisk Stock Dives After Tepid Forecast Despite AI-Fueled Q4 Beat

Sandisk Corp. (SNDK August 06, 2026, $1,211 Pre-market)

SNDK Q4 2026 Earnings Review

Memory-chip maker Sandisk (SNDK) beat Wall Street estimates for the fiscal fourth quarter thanks to strong AI data-center demand, but its in-line outlook sent the stock lower in after-hours trading.

The company earned an adjusted $39.25 a share on sales of $8.97 billion in the quarter ended July 3, beating FactSet estimates of $34.96 a share on $8.48 billion in sales. In the year-ago quarter, SanDisk posted an adjusted $0.29 a share on $1.9 billion in revenue.

Key highlights:

• SanDisk’s fiscal Q4 marked its fifth consecutive quarter of accelerating sales, driven by memory chips and storage for AI data centers. The company said one-third of sequential revenue growth came from higher volumes and two-thirds from higher prices.

• Year-over-year, SanDisk's earnings jumped 13,434% and sales rose 372%; sequentially, earnings climbed 68% and revenue increased 51%.

• Soaring demand from cloud giants like Amazon, Meta and Alphabet is outstripping memory supply, prompting price hikes that have boosted Sandisk.

What happened: Sandisk (SNDK) shares tumbled about 10.33% in premarket trading.

Why: The flash-memory maker gave fiscal Q1 revenue guidance that missed analyst estimates.

Sandisk: Key Q4 Results and Q1 Guidance

Q1 revenue guidance: $10.30B–$10.80B (midpoint above LSEG analyst average of $10.47B).

Q1 adjusted EPS guidance: $44–$46 (vs. $43.12 consensus).

Q4 revenue: $8.97B (beat $8.39B estimate).

Q4 adjusted EPS: $39.25 (beat $34.45 estimate).

Q4 data-center revenue: $2.98B, more than doubled sequentially from Q3.

Growth drivers: Generative AI demand boosting enterprise SSDs and flash memory capacity needs.

Business development: Signed five additional agreements since April (three new customers, two expansions).

Capital return: Board approved an additional $14B share-repurchase program; $15.5B total remaining authorization.

Analysts Expectation – post Q4 earnings:

• RBC raises SanDisk price target to $1,300 from $1,000.

• A Citi analyst kept a "buy" on (SNDK), cutting the price target to $2,100 from $2,500.

• Evercore ISI cut its SanDisk (SNDK) price target to $2,800 while maintaining an Outperform rating.

• Wells Fargo cut its SanDisk (SNDK) price target to $1,400 from $1,620, keeping an Equal Weight rating.

Quarterly Performance Summary:

Revenue was about $9.0B, up 51% sequentially and 372% year‑over‑year; roughly one‑third of the sequential gain came from volume and two‑thirds from higher pricing amid tight NAND supply.

Datacenter Becomes Primary Growth Driver:

Management called datacenters the fastest-growing end market and a core long-term pillar; fiscal 2026 datacenter revenue hit $5.153B, up 437% year-over-year.

Strategic Initiatives: New Business Models:

SanDisk highlighted its New Business Models (NBMs) - long-term supply deals that boost revenue visibility and include financial guarantees. It has eight NBM customers covering $93.9 billion in minimum contracted revenue at floor pricing. RPO was $59.8 billion at quarter-end (rising to $91.1 billion with post-quarter deals), and the agreements include $16.5 billion in financial guarantees. Management says NBMs will account for over half of bits in FY27 and about two-thirds in FY28, with a weighted-average duration of more than four years.

Source: SNDK Q4-26 Earnings Deck

SHARIAH Compliance Metrics

SNDK qualifies all three Musaffa Shariah screening parameters based on AAOIFI methodology as of Q3 2026 report.

• Business Activity 99.63% Halal, Doubtful is 0.02%, and non-Halal is 0.35%.

• Interest-bearing securities and assets = 12.06% (Shariah-complaint is < 30%).

• Interest-bearing debt = 0.00% (Shariah-complaint is < 30%).

You can get a more detailed view of the Shariah status on the Sandisk stock page.