Sandisk Drops 6.8% Despite Blowout Q4 Earnings, AI Demand
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- Sandisk reported fiscal Q4 2026 non-GAAP earnings of $39.25 per share on $8.97 billion in revenue, with data center revenue jumping 103% sequentially to $2.98 billion on AI memory demand
- Sandisk stock dropped 6.8% on Thursday after its FQ1 FY2027 revenue guidance range of $10.3 billion to $10.8 billion came in below the $10.8 billion consensus midpoint
- Sandisk repurchased $4.5 billion of its stock in the most recent quarter and still has $14.5 billion remaining under its existing buyback authorization, per Yahoo Finance AlphaSpace data
- Citi analyst Asiya Merchant, after meeting with Sandisk's CEO and CFO, characterized management's tone as "very bullish" and cited a NAND total addressable market of roughly $500 billion by CY2027
- CEO David Goeckeler told the earnings call that Sandisk has "over four years of visibility" on committed demand from its largest customers, framing the outlook as long-lasting rather than cyclical
- Sandisk shares remain up roughly 430% year-to-date despite the summer sell-off and the latest post-earnings decline
Why it matters: Sandisk shareholders absorbed a 6.8% single-day decline even as the company posted triple-digit revenue growth, an active $4.5 billion buyback, and multi-year demand visibility from hyperscaler customers — underscoring how a stock up roughly 430% year-to-date can punish investors for merely meeting, not blowing past, already-elevated expectations.
