Sandisk Beats Revenue Estimates, Shares Drop 8%
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- Sandisk forecast Q1 revenue of $10.30–$10.80 billion with a midpoint above the $10.47 billion LSEG analyst estimate, and adjusted profit of $44–$46 per share versus the $43.12 consensus.
- Shares dropped nearly 8% in extended trading despite the revenue beat, following a roughly 470% year-to-date rally, as the midpoint of profit guidance topped LSEG estimates but fell short of other data providers.
- CEO David Goeckeler said Sandisk has shifted sales toward long-term purchase agreements with a median duration of four years, securing eight deals worth at least $93.9 billion with six customers.
- Sandisk's Q4 data-center revenue more than doubled sequentially to $2.98 billion; total Q4 revenue of $8.97 billion beat the $8.39 billion estimate and adjusted profit of $39.25/share topped the $34.45 estimate.
- Sandisk's board approved an additional $14 billion share repurchase authorization, bringing total remaining buyback capacity to $15.5 billion.
- Sandisk signed five additional long-term agreements since April — three with new customers and two expansions of existing deals — and expects half of FY2027 output and two-thirds of FY2028 output to be sold under such contracts.
Why it matters: Sandisk's $93.9 billion in locked-in long-term deals covering half of FY2027 and two-thirds of FY2028 production fundamentally de-risks its AI memory-chip revenue stream, but the 8% after-hours selloff shows investors expected a bigger guide-up after a 470% YTD run.
