Sandisk Drops 6.8% Despite Blowout Q4 Earnings
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- Sandisk reported fiscal Q4 2026 non-GAAP earnings of $39.25 per share on $8.97 billion in revenue, comfortably beating Wall Street estimates on record top-line performance.
- Sandisk data center revenue surged 103% sequentially to $2.98 billion, driven by explosive demand for AI memory infrastructure as hyperscalers scaled AI inference workloads.
- Sandisk stock dropped 6.8% on Thursday after the midpoint of its Q1 fiscal 2027 revenue guidance ($10.3B–$10.8B) came in below consensus estimates of $10.8B.
- Sandisk repurchased $4.5 billion of its own stock in the most recent quarter, with $14.5 billion remaining under its existing share repurchase authorization.
- Citi analyst Asiya Merchant, after meeting with Sandisk's CEO and CFO, reported management tone was "very bullish," citing a projected NAND total addressable market of roughly $500 billion by calendar year 2027 (up from $300 billion in 2026).
- CEO David Goeckeler said the company has "over four years of visibility" on committed demand from its largest customers, with no indication on the earnings call that fundamentals were shifting negatively.
- Despite the sell-off, Sandisk stock remains up close to 430% year-to-date.
Why it matters: Sandisk's 6.8% drop on numbers that tripled data center revenue and confirmed four years of demand visibility shows how unforgiving momentum-stock tape has become — a single guidance midpoint miss triggered the pullback even as management backed the quarter with a $4.5 billion buyback and a bullish Citi-monitored outlook.
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