Overview
Since the Report + 3.0%
Revenue grew 372.0% year over year, EPS beat the estimate by 12.0%; the stock fell 6.8% in its first reaction.
- RevenueQ4
- $8.97B
- ▲ 372% YoY
- Gross Margin
- 84.6%
- Record · Guidance Was 79 – 81%
Verdict
BUYA record quarter beat expectations across the board: revenue reached $8.97 billion and gross margin hit 84.6%. The stock still slid 6.8% close-to-close, because a ~40% pre-earnings rally had already priced in the good news. The focus now shifts to how close the NAND pricing cycle is to its peak.
Close on Report DayAug 5
$1,258.58▼ 6.8%Report-Day Move
- Market Cap(Today)
- ≈ $187 B
- 1Y Return(At Report)
- + 2,902%
- P/E(At Today's Price · $70.08 · Trailing 12M)
- 18.5
- PEG(Forward 12 Months)
- 0.09
- Net Margin(Trailing 12M)
- 56.5%
Earnings Summary
In 30 Seconds- Revenue of $8.97 billion beat expectations by 5.7%, and non-GAAP EPS of $39.25 beat by 12%.
- Datacenter revenue rose from $213 million a year earlier to $2.98 billion, reaching 33% of total revenue.
- The stock fell 6.8% close to close after a ~40% pre-earnings rally and revenue guidance 2.5% below expectations.
The Numbers
Non-GAAP EPS
$39.25
~12% Above Expectations
Datacenter Revenue
$2.98B
▲ 103% QoQ · Fiscal Year ▲ 437%
Q1 FY27 Guidance
$10.3-10.8B
In Line with Expectation
Stock Reaction
−6.8%
Close to Close
Quarterly Revenue ($ Billion)
1.90
Q4 25 · $1.90 B
2.31
Q1 26 · $2.31 B · QoQ + 21.4%
3.03
Q2 26 · $3.03 B · QoQ + 31.1%
5.95
Q3 26 · $5.95 B · QoQ + 96.7%
8.97
Q4 26 · $8.97 B · QoQ + 50.7% · YoY + 371.6%
$10.3–10.8B
Q1 27E · $10.3–10.8B · QoQ + 17.7% · YoY + 357.1%
- Q4 25
- Q1 26
- Q2 26
- Q3 26
- Q4 26
- Q1 27E
Q1 FY27 Company Guidance
- Revenue10.3 – 10.8 billion10.3 billion10.8 billion
Midpoint 10.55 · Market Expectation 10.82Midpoint 2.5% Below Estimate ▼
- Earnings Per Share (Adjusted)44 – 46 $44 $46 $
Midpoint 45.00 · Market Expectation 44.21Midpoint 1.8% Above Estimate ▲
- Gross Margin83% – 85%83%85%
Midpoint 84.0% · 84.6% Actual Last QuarterSlightly Lower · 0.6 pt Contraction ▼
How to Read the Chart
The blue band is the company's low-high range; its length shows how much room the company left itself. The black triangle and the line beneath it mark where the market expected, and the notch in the band is the range's midpoint. The triangle appears only where a market expectation is known. When the company gave a single number rather than a range and no market expectation is known, that row gets no band at all: there is no length to measure and no position to compare. Axis is ±2.9% around the midpoint.
Segment and KPI Data
Revenue by Segment
- Edge$5.43 BShare 60.6%▲ 392.0% YoY
- Datacenter$2.98 BShare 33.2%
$213M a year ago; company calls the YoY rate not meaningful
- Consumer$556 MShare 6.2%▼ 5.0% YoY
Key Metrics
Operating Cash Flow
$7.13 B
Press Release
Adjusted Free Cash Flow
$5.04 B
Press Release
Fiscal-Year Free Cash Flow
$11.5 B
Press Release
Cash and Cash Equivalents
$4.76 B
▲ 221.5% YoYPress Release
Inventories
$2.70 B
▲ 29.8% YoYPress Release
Shares Outstanding
149 M shares
▲ 2.1% YoYPress Release
Shares are computed over the segment total: $8.97 B. Source: Press Release.
Metrics come only from the company's own filings; each one names the document it was taken from.
“We closed fiscal 2026 with a leading technology portfolio, established datacenter as a key growth pillar, and deepened our customer partnerships.”
- Data Center Largest Segment
- Demand Exceeds Supply
- $15.5B Buyback Remaining
Summary and Review
Summary
SanDisk reported fiscal Q4 2026 revenue of $8.97 billion. That is up 372% from $1.90 billion a year earlier and 51% sequentially. The figure landed ~5.7% above the ~$8.56 billion market expectation. Non-GAAP EPS of $39.25 beat estimates by about 12%. Gross margin set a record of 84.6%, past the company's own 79-81% guidance. The new engine of growth was the datacenter, which reached $2.98 billion, up from $213 million a year earlier. Full-year revenue climbed to $20.25 billion, a 175% gain.
Even though every metric beat, the stock fell 6.8% close-to-close. It dropped ~7.3% after hours and ~11% to $1,199 in pre-market. Two reasons stand out. First, the shares had rallied ~40% in the five days before earnings, breaking above $1,400. Most of the good news was already priced in. Second, the Q1 FY27 guidance midpoint is ~$10.55 billion. That matches the ~$10.82 billion expectation but falls short of the most aggressive estimates (~$11.1 billion). It also revived NAND peak-cycle worries.
The quarter itself was very strong: record margins, beats on every line, a solid structural datacenter story. The guidance even implies ~18% sequential growth. The only caveat holding the score at 80 is the margin's source. It is driven mostly by NAND pricing rather than volume, with the cycle approaching a peak. The verdict is buy on the quality of the quarter. The sell-off reflects not weakness in the results but a price that had already discounted future growth.
Full Review
The datacenter is now the growth engine.
The most striking figure of the quarter is datacenter revenue. The segment reached $2.98 billion, up from $213 million a year earlier. It rose 103% sequentially and 437% for the fiscal year. It now accounts for 33% of total revenue. SanDisk is moving away fast from its classic consumer-dependent memory identity. Edge remained the largest line at $5.43 billion, up 48% sequentially. Consumer, by contrast, fell 32% sequentially to $556 million. Total revenue rose 51% from the prior quarter. The contribution came from datacenter and edge, while consumer went backwards. That mix confirms demand is being driven by AI and the datacenter, while classic retail memory stays weak. The same mix shaped the full year: revenue of $20.25 billion, up 175%.
Record gross margin, but close to the peak.
Gross margin came in at 84.6%. That is 6.2 points higher than the prior quarter. It also comfortably exceeded the company's 79-81% guidance. For a NAND/flash maker that level is extraordinary. The margin is fueled largely by price increases in a tight supply environment. Therein lies the concern: most of the gains come from price rather than volume. Price-driven margins are cyclical. When NAND prices peak, margins normalize. The company's own outlook implies as much: Q1 FY27 gross margin is guided to 83-85%, a midpoint of 84.0%. Management therefore expects a flat to slightly lower margin. Cash generation stayed strong: operating cash flow $7.13 billion and free cash flow $7.08 billion. Capital expenditure stayed at just $43 million, about 0.5% of revenue. This is what the market was questioning on earnings day: how durable today's record profitability really is.
Guidance is strong but below the highest bar.
The company guided Q1 FY27 to $10.3-10.8 billion in revenue. Non-GAAP EPS guidance is $44.00-46.00. The revenue midpoint of $10.55 billion implies ~18% sequential growth. In absolute terms that is very strong. But the market expectation was ~$10.82 billion. Some buy-side estimates ran as high as $11.1 billion. The guidance did not clear that most ambitious bar; the midpoint sits 2.5% below the estimate. On earnings the picture flips: the $45.00 midpoint is 1.8% above the $44.21 market expectation. The softness is in the revenue bar, not in profit. Investors were disappointed not by the quarter itself, but by a market that wanted the next quarter to beat by an even wider margin.
The stock fell because the future was priced in.
The shares had climbed ~40% in the five days before earnings to break above $1,400. After the results they pulled back 6.8% close-to-close. The logic of the decline is a case of profit-taking. After the rally, the good news was already in the price. Slightly soft guidance added to it. So did sector-wide skepticism about the return on AI investment (ROI). The sense that the NAND cycle is nearing its top completed the picture. Analyst targets show the same uncertainty: the range runs from Wells Fargo's $1,400 to Susquehanna's $3,050. The company holds $15.5 billion of remaining buyback authorization, $14 billion from a new program. A recurring theme on our pages applies here: even a strong quarter can send a stock lower, because the price may have already discounted future growth (see /rehber/volatilite and /rehber/degerleme). Watch one line next quarter: whether gross margin holds in the 83-85% band.
Looking Ahead
Strengths and Risks
5 Strengths · 5 RisksStrengths
5- Revenue beat by ~5.7% to a record $8.97 billionUp 372% year over year
- Gross margin set a record at 84.6% — well above the company's own 79-81% guidance
- Datacenter revenue jumped from $213 million a year earlier to $2.98 billionA new and durable growth pillar
- Non-GAAP EPS of $39.25 came in ~12% above expectations
- Full fiscal-year revenue of $20.25 billion, up 175%Q1 FY27 guidance implies ~18% sequential growth
Risks
5- Fears the NAND pricing cycle is nearing its peakMost margin gains come from price rather than volume
- Consumer segment shrank 32% sequentially to $556 million — demand is uneven
- Q1 FY27 guidance midpoint sits slightly below the ~$10.82 billion market expectationAggressive buy-side looked for $11.1 billion
- Analyst targets span a wide range, from Wells Fargo's $1,400 to Susquehanna's $3,050 — high uncertainty
- The ~40% pre-earnings rally had priced in most of the good news — near-term profit-taking pressure
What to Watch
3- Q1 FY27 earningsExpected ~late October / early November 2026
- NAND spot and contract prices: the key signal for the direction of the cycle through the quarter
- Sustainability of datacenter and AI-driven storage demand
Upcoming Earnings
To Understand This