Sandisk Corp (SNDK): Results of Operations and Financial Condition
Sandisk Corp (SNDK) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Sandisk Reports Fiscal Fourth Quarter 2026 Financial Results News Summary • Fiscal fourth quarter revenue was $8.97 billion, up 51% sequentially, with GAAP net income reported at $6.90 billion ($43.97 diluted net income per share). Sequential revenue growth came appr
How this was made
The 30-second read
Why it matters
The key tradable inputs are the reported Q4 and full-year financials, the segment mix shift toward datacenter, the expanded $14B buyback authorization, and the explicit Q1 2027 revenue and Non-GAAP EPS guidance range.
Market read
This is a primary earnings-and-guidance disclosure with a large buyback update, likely driving immediate repricing of near-term earnings expectations.
What to watch
The filing emphasizes Non-GAAP adjustments and excludes certain items from guidance; traders should monitor whether GAAP-to-Non-GAAP reconciliation trends persist and whether consumer revenue weakness offsets datacenter strength.
Fiscal fourth quarter revenue was $8.97 billion, up 51% sequentially, with GAAP net income reported at $6.90 billion ($43.97 diluted net income per share).
Revenue increased 51% sequentially and 372% year-over-year, GAAP gross margin reached 84.6%, and GAAP net income was $6,903 million. First-quarter fiscal 2027 revenue guidance of $10,300 - $10,800 million indicates further sequential growth from the fourth-quarter result.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 2026 RevenueGAAP | $8,965 | up 51% | up 372% |
| Q4 2026 Revenuenon-GAAP | $8,965 | up 51% | up 372% |
| Q4 2026 Gross MarginGAAP | 84.6% | up 6.2 ppt | up 58.4 ppt |
| Q4 2026 Gross Marginnon-GAAP | 84.6% | up 6.2 ppt | up 58.2 ppt |
| Q4 2026 Operating ExpensesGAAP | $545 | down 1% | up 14% |
| Q4 2026 Operating Expensesnon-GAAP | $484 | up 8% | up 20% |
| Q4 2026 Operating IncomeGAAP | $7,037 | up 71% | – |
| Q4 2026 Operating Incomenon-GAAP | $7,104 | up 68% | – |
| Q4 2026 Net IncomeGAAP | $6,903 | up 91% | – |
| Q4 2026 Net Incomenon-GAAP | $6,162 | up 68% | – |
| Q4 2026 Diluted Net Income Per ShareGAAP | $43.97 | up 91% | – |
| Q4 2026 Diluted Net Income Per Sharenon-GAAP | $39.25 | up 68% | – |
| Fiscal Year 2026 RevenueGAAP | $20,248 | – | up 175% |
| Fiscal Year 2026 Revenuenon-GAAP | $20,248 | – | up 175% |
| Fiscal Year 2026 Gross MarginGAAP | 71.5% | – | up 41.4 ppt |
| Fiscal Year 2026 Gross Marginnon-GAAP | 71.6% | – | up 41.3 ppt |
| Fiscal Year 2026 Operating ExpensesGAAP | $2,083 | – | down 42% |
| Fiscal Year 2026 Operating Expensesnon-GAAP | $1,791 | – | up 16% |
| Fiscal Year 2026 Operating Income (Loss)GAAP | $12,389 | – | – |
| Fiscal Year 2026 Operating Income (Loss)non-GAAP | $12,700 | – | – |
| Fiscal Year 2026 Net Income (Loss)GAAP | $11,433 | – | up 797% |
| Fiscal Year 2026 Net Income (Loss)non-GAAP | $10,987 | – | – |
| Fiscal Year 2026 Diluted Net Income (Loss) Per ShareGAAP | $73.76 | – | up 752% |
| Fiscal Year 2026 Diluted Net Income (Loss) Per Sharenon-GAAP | $70.88 | – | – |
| Fiscal Year 2026 Datacenter Revenueother | $5,153 | – | up 437% |
| Fiscal Year 2026 Edge Revenueother | $12,160 | – | up 195% |
| Fiscal Year 2026 Consumer Revenueother | $2,935 | – | up 29% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| DatacenterRevenue growth driver was not separately specified for the quarter. | $2,977 | up 103% | – |
| EdgeRevenue growth driver was not separately specified for the quarter. | $5,432 | up 48% | up 392% |
| ConsumerRevenue growth driver was not separately specified for the quarter. | $556 | down 32% | down 5% |
Fiscal first quarter of 2027 outlook
- Revenue$10,300 - $10,800
- Gross marginGAAP 83.0% - 84.9%; Non-GAAP 83.0% - 85.0%
- Operating expensesGAAP $574 - $614; Non-GAAP $520 - $540
- Tax rateNon-GAAP 15.0%
- NoteNon-GAAP diluted net income per share: $44.00 - $46.00
- NoteDiluted Shares Outstanding: ~ 155
- NoteNon-GAAP gross margin guidance excludes stock-based compensation expense, totaling approximately $5 million to $7 million.
- NoteNon-GAAP operating expenses guidance excludes stock-based compensation expense, totaling approximately $54 million to $74 million.
- NoteNon-GAAP diluted net income per share guidance excludes these items totaling $59 million to $81 million.
Capital returns
- Sandisk’s Board of Directors approved an additional $14 billion buyback program.
- Total remaining authorization was $15.5 billion.
What drove it
- Sequential revenue growth came approximately one-third from higher volumes and two-thirds from higher pricing.
- Fiscal year 2026 revenue outperformance was driven by both mix shift toward higher-value customers and higher pricing.
- Datacenter was up 437% for fiscal year 2026.
- Since the April earnings call, the company signed five additional agreements, including three New Business Model agreements with new customers and two deals expanding previously signed New Business Model agreements.
Concerns
- Consumer revenue was down 32% sequentially and down 5% year-over-year in Q4 2026.
- The reported Q4 results may differ from results disclosed in the Form 10-K following financial closing procedures, final adjustments, completion of the audit, and other developments.
- Management identified volatility in demand, pricing trends and fluctuations in average selling prices, customer deployment timing, product ramps, manufacturing and supply-chain disruptions, and reliance on strategic relationships as risks.
What to watch
- Execution against fiscal first-quarter 2027 revenue guidance of $10,300 - $10,800.
- Whether pricing and volume continue to support revenue growth.
- Datacenter growth and the contribution of customer partnerships.
- Consumer end-market revenue following its sequential and year-over-year declines in Q4 2026.
- Progress under the additional $14 billion buyback program.
Analysis
Sandisk closed fiscal 2026 with a sharp acceleration in its fourth quarter. Q4 revenue was $8,965 million, up 51% sequentially and 372% year-over-year. The company attributed sequential growth approximately one-third to higher volumes and two-thirds to higher pricing. Fiscal-year revenue was $20,248 million, up 175% year-over-year, with management attributing outperformance to higher pricing and a mix shift toward higher-value customers.
The revenue mix showed broad strength outside Consumer. Datacenter revenue was $2,977 million in Q4, up 103% sequentially, while Edge revenue was $5,432 million, up 48% sequentially and 392% year-over-year. Consumer revenue was $556 million, down 32% sequentially and 5% year-over-year. For fiscal 2026, Datacenter revenue rose 437%, Edge increased 195%, and Consumer grew 29%.
Margins and earnings expanded materially. Q4 GAAP gross margin was 84.6%, up 6.2 ppt sequentially and 58.4 ppt year-over-year. GAAP operating income was $7,037 million, up 71% sequentially, and GAAP net income was $6,903 million, up 91% sequentially. Fiscal-year GAAP gross margin reached 71.5%, operating income was $12,389 million, and net income was $11,433 million, compared with prior-year operating and net losses.
Capital allocation moved toward a substantially larger repurchase capacity. The board approved an additional $14 billion buyback program, bringing total remaining authorization to $15.5 billion. The release did not report repurchase spending in the quarter or fiscal year, nor did it provide cash, debt, operating cash flow, or free cash flow figures.
For fiscal first quarter 2027, Sandisk expects revenue of $10,300 - $10,800, GAAP gross margin of 83.0% - 84.9%, non-GAAP gross margin of 83.0% - 85.0%, and non-GAAP diluted net income per share of $44.00 - $46.00. The outlook calls for revenue above the Q4 result while pointing to gross-margin ranges below Q4's 84.6% GAAP and non-GAAP gross margin at the low ends of the respective ranges. Non-GAAP guidance excludes specified stock-based compensation amounts, and a full reconciliation to certain GAAP measures is unavailable without unreasonable effort.
Management, verbatim
We closed fiscal 2026 with a leading technology portfolio, established datacenter as a key growth pillar, and deepened our customer partnerships.
David Goeckeler, Chairman and Chief Executive Officer of Sandisk
Our technology and products are well positioned to create value for our customers and generate growing and durable free cash flow.
David Goeckeler, Chairman and Chief Executive Officer of Sandisk
Not in the filing
stated, not guessed- Operating cash flow
- Free cash flow
- Cash balance
- Debt balance
- Quarterly or fiscal-year repurchase spending
- Dividend amount or dividend policy
- GAAP tax-rate guidance
- GAAP diluted net income per share guidance
- Q4 2026 Datacenter year-over-year percentage change, reported as not meaningful
- Q4 2026 Datacenter-specific revenue driver
- Q4 2026 Edge-specific revenue driver
- Q4 2026 Consumer-specific revenue driver
- Previous-release outlook for comparison
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Sandisk became a standalone public company after separating from Western Digital on Feb. 21, 2025; this 8-K reports fiscal Q4 2026 results and Q1 2027 outlook.
Ticker impact
Sandisk reported fiscal Q4 2026 results and guided fiscal Q1 2027 revenue to $10.30B-$10.80B and Non-GAAP EPS to $44-$46.
Likely positive near-term bias as guidance and buyback expansion support earnings expectations, though semiconductor memory cyclicality can cap upside.
The filing discloses concrete Q4 financials, full-year performance, and a specific Q1 2027 revenue and Non-GAAP EPS range, alongside a $14B incremental repurchase authorization.
Market effects
Datacenter revenue surge and pricing-driven growth may reinforce positive read-through for NAND flash demand and pricing power.
Limited direct regional impact beyond US-listed semiconductor sentiment.
Could influence global memory supply-demand expectations if investors extrapolate datacenter strength across the NAND complex.
Counterpoint
Datacenter growth may be partly mix and pricing, so margins and demand could normalize, making the guidance range vulnerable to downside if pricing weakens.
Key entities
- companySandisk Corporation
Nasdaq-listed semiconductor memory company reporting fiscal Q4 2026 results and Q1 2027 guidance, plus an expanded share repurchase authorization.
- executiveDavid Goeckeler
Chairman and CEO quoted on technology positioning and free cash flow outlook.
