Sandisk (NASDAQ:SNDK) Posts Quarterly Earnings Results, Beats Estimates By $3.32 EPS

Sandisk (NASDAQ:SNDK) released its earnings results on Thursday. The data storage provider reported $49.51 earnings per share for the quarter, topping analysts’ consensus estimates of $46.19 by $3.32, FiscalAI reports. The business had revenue of $11.03 billion for the quarter. Sandisk had a return on equity of 137.31% and a net margin of 67.04%. The firm’s quarterly revenue was up 23.0% compared to the same quarter last year. During the same period last year, the business earned $1.22 earnings per share.

Here are the key takeaways from Sandisk’s conference call:

• Strong first-quarter results exceeded guidance: Revenue reached $11 billion, non-GAAP gross margin was 85.1%, and non-GAAP EPS was $49.51. Adjusted free cash flow totaled $5.7 billion, supporting $5 billion in share repurchases.
• AI-driven data-center demand remains a major growth engine. Data-center revenue rose 61% sequentially to $4.8 billion, while management said industry data-center bit demand could grow about 40% in calendar 2027 and exceed 55% of the market.
• Long-term customer commitments are expanding. Sandisk said its NBM pipeline exceeds available supply through the end of the decade, with roughly half of fiscal 2027 bits and two-thirds of fiscal 2028 bits under contract; management expects the committed share to rise further.
• Near-term guidance points to continued growth. Fiscal second-quarter revenue is expected at $12.2 billion-$12.6 billion, with non-GAAP EPS of $55-$57 pre-split, and the board approved an 8-for-1 stock split effective in November.
• Consumer weakness and seasonal risk remain. Consumer revenue fell 29% sequentially to $397 million as customers adjusted to higher prices, and management cautioned that fiscal third-quarter sequential growth should be modeled conservatively because it is historically the weakest quarter.

Sandisk Price Performance

Shares of NASDAQ SNDK opened at $1,150.89 on Friday. Sandisk has a 1 year low of $183.00 and a 1 year high of $2,354.39. The firm has a market cap of $166.34 billion, a PE ratio of 9.23, a price-to-earnings-growth ratio of 0.13 and a beta of 5.23. The company has a 50 day simple moving average of $1,557.91 and a 200 day simple moving average of $1,250.84.

Sandisk shares are going to split on Monday, November 9th. The 8-1 split was announced on Thursday, October 29th. The newly issued shares will be distributed to shareholders after the closing bell on Thursday, November 19th.

Insider Buying and Selling

In other news, insider Bernard Shek sold 600 shares of the stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $1,734.94, for a total value of $1,040,964.00. Following the completion of the sale, the insider owned 25,588 shares of the company’s stock, valued at approximately $44,393,644.72. This represents a 2.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Alper Ilkbahar sold 4,712 shares of the firm’s stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $1,540.58, for a total value of $7,259,212.96. Following the transaction, the executive vice president owned 44,134 shares of the company’s stock, valued at $67,991,957.72. This trade represents a 9.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 77,899 shares of company stock valued at $121,159,122. Company insiders own 0.29% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of Sandisk during the 2nd quarter valued at $23,408,732,000. Situational Awareness LP increased its stake in shares of Sandisk by 42.4% in the 2nd quarter. Situational Awareness LP now owns 2,495,344 shares of the data storage provider’s stock worth $5,673,739,000 after acquiring an additional 743,325 shares during the last quarter. Wellington Management Group LLP lifted its position in Sandisk by 71.2% in the second quarter. Wellington Management Group LLP now owns 1,066,886 shares of the data storage provider’s stock valued at $2,425,811,000 after buying an additional 443,714 shares during the last quarter. Amundi boosted its stake in shares of Sandisk by 135.5% in the first quarter. Amundi now owns 872,632 shares of the data storage provider’s stock valued at $554,418,000 after purchasing an additional 502,166 shares during the period. Finally, Assenagon Asset Management S.A. raised its holdings in shares of Sandisk by 33.3% in the 3rd quarter. Assenagon Asset Management S.A. now owns 828,900 shares of the data storage provider’s stock valued at $1,442,195,000 after purchasing an additional 207,051 shares in the last quarter.

Sandisk declared that its Board of Directors has initiated a stock repurchase program on Wednesday, August 5th that authorizes the company to repurchase $14 billion in shares. This buyback authorization authorizes the data storage provider to purchase up to 6.6% of its shares through open market purchases. Stock buyback programs are generally a sign that the company’s management believes its stock is undervalued.

More Sandisk News

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Sandisk reported fiscal Q1 revenue of $11.03 billion and non-GAAP EPS of $49.51, exceeding Wall Street expectations. Revenue increased 378% year over year, while GAAP net income reached $8.1 billion. SanDisk Q1 2027 Earnings Call Transcript
• Positive Sentiment: Management projected fiscal Q2 revenue of $12.2 billion to $12.6 billion and highlighted strong AI-driven data-center demand, long-term customer supply agreements and a pipeline extending through 2030. Data-center revenue rose 61% sequentially. SanDisk CEO Sees Strong Customer Demand
• Positive Sentiment: The board approved an 8-for-1 forward stock split effective November 19, and Sandisk repurchased approximately $5 billion of stock during the quarter. These actions may improve trading accessibility and signal management confidence, although they do not change intrinsic value. Sandisk Tops Estimates and Announces Stock Split
• Neutral Sentiment: Analyst sentiment remains divided. Rosenblatt reaffirmed a $2,400 buy target and Susquehanna maintained a positive rating, while Wells Fargo cut its target to $1,300 with an equal-weight rating and RBC reduced its target to $1,400 with a sector-perform rating.
• Negative Sentiment: Investors appear concerned that memory pricing and margins may be near a peak, limiting further earnings upside after the stock’s substantial run. Analysts also flagged valuation risks despite the earnings beat. Analyst Sees Memory Pricing Peak
• Negative Sentiment: The broader technology and semiconductor sell-off, triggered partly by disappointing results from Amazon and Intel, pressured memory stocks across the sector. Rising competition from China’s CXMT added another concern for investors. Why Memory Stocks Are Falling

Analyst Ratings Changes

Several equities analysts recently issued reports on the stock. Argus raised shares of Sandisk from a “hold” rating to a “buy” rating and set a $1,600.00 price target for the company in a report on Monday, August 10th. Weiss Ratings cut shares of Sandisk from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, October 14th. Wells Fargo & Company reduced their price objective on shares of Sandisk from $1,550.00 to $1,300.00 and set an “equal weight” rating on the stock in a research note on Friday. Arete Research boosted their target price on Sandisk from $2,300.00 to $3,000.00 and gave the company a “buy” rating in a research note on Thursday, August 27th. Finally, Susquehanna dropped their price objective on shares of Sandisk from $2,745.00 to $2,720.00 and set a “positive” rating on the stock in a report on Friday. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, Sandisk presently has a consensus rating of “Moderate Buy” and a consensus target price of $2,056.23.

Sandisk Company Profile

SanDisk Corporation offers flash storage solutions. The Company designs, develops and manufactures data storage solutions in a range of form factors using flash memory, controller, firmware and software technologies. The Company operates through flash memory storage products segment. Its solutions include a range of solid state drives (SSD), embedded products, removable cards, universal serial bus (USB), drives, wireless media drives, digital media players, and wafers and components. It offers SSDs for client computing applications, which encompass desktop computers, notebook computers, tablets and other computing devices.