Sandisk reported fiscal fourth-quarter 2026 earnings that beat expectations, with revenue of $8.97 billion, up 51% from the prior quarter. Full-year revenue reached $20.25 billion, a 175% increase, driven by a 437% jump in datacenter revenue. The company guided next quarter revenue of $10.30 to $10.80 billion, slightly below analyst forecasts. Goldman Sachs maintained a Buy rating and a $2,200 price target, while Mizuho cut its target to $1,900 but kept a Buy rating. Shares traded lower as the market digested the mixed guidance.
Sandisk’s fiscal fourth-quarter earnings beat expectations on Tuesday, triggering a mixed reaction from analysts. Goldman Sachs kept its price target unchanged at $2,200, while Mizuho trimmed its target to $1,900, though both firms maintained Buy ratings.
The company posted revenue of $8.97 billion, up 51% from the prior quarter. Full-year fiscal 2026 revenue landed at $20.25 billion, up 175% from fiscal 2025, as datacenter revenue alone surged 437%.
GAAP net income for the fiscal year came in at $11.43 billion, or $73.76 per diluted share. For the fourth quarter, GAAP net income reached $6.90 billion, or $43.97 per diluted share, up 91% from the prior quarter.
Gross margin expanded to 84.6%, more than six points higher than the prior quarter. The board approved an additional $14 billion buyback, bringing total remaining authorization to $15.5 billion.
Guidance for the first quarter of fiscal 2027 calls for revenue of $10.30 billion to $10.80 billion, with non-GAAP earnings per share expected between $44.00 and $46.00.
David Goeckeler, Chairman and CEO of Sandisk, said: “We closed fiscal 2026 with a leading technology portfolio, established datacenter as a key growth pillar, and deepened our customer partnerships.”
Goldman Sachs analyst James Schneider reiterated his Buy rating, noting that revenue guidance came in below the Street while earnings guidance was in line. He said: “We expect the stock to trade lower following a strong quarter with guidance that was below the Street on revenue, but in line on EPS. Investor expectations remained very elevated heading into the call.”
Mizuho kept its Buy rating but lowered its price target to $1,900 from $2,200. The Sandisk stock price target range on Wall Street has widened since the earnings report. Shares were trading lower at the time of writing.
