Sandisk stock sinks as revenue forecast falls short of expectations
SanDisk (SNDK) shares fell about 5% after the company issued fiscal Q1 revenue guidance of $10.3B to $10.8B, below analyst estimates of $11.16B. Adjusted EPS was $39.25, above $34.37. It expects adjusted EPS of $44 to $46 vs $45.58, and gross margin guidance of 83% to 85% for 2027.
How this was made
The 30-second read
Why it matters
The immediate driver is fiscal Q1 revenue guidance below consensus, plus a current-quarter adjusted EPS forecast that is slightly under estimates, despite a prior-quarter revenue beat and record gross margin.
Market read
Traders can use the guidance ranges and allocation commentary to update near-term revenue/EPS expectations and reassess how quickly supply tightness converts into reported revenue.
What to watch
Management expects bits to remain on allocation beyond calendar 2027 and highlights long-term new-business model agreements, which may offset near-term revenue volatility.
Background
SanDisk (spun off from Western Digital in Feb 2025) is a key beneficiary of AI-driven memory demand, with supply constraints supporting pricing.
Ticker impact
SanDisk guided fiscal Q1 revenue to $10.3B-$10.8B versus $11.16B estimates, driving a reported 5% stock drop.
Bearish bias for the next few sessions as traders reprice 2027 margin and allocation-driven supply constraints.
The article cites specific below-consensus guidance ranges for revenue and adjusted EPS, which are direct inputs to near-term valuation and expectations.
Market effects
Signals continued tight flash memory supply and pricing power, but with demand/supply dynamics translating into guidance that still disappoints expectations.
Limited direct regional read-through; primarily affects US-listed memory/storage sentiment.
Memory pricing and AI infrastructure bottleneck narratives may see incremental repricing if guidance softness spreads across the supply chain.
Counterpoint
The company’s record gross margin and EPS beat suggest fundamentals remain strong; the revenue miss could reflect timing of shipments within a still-tight supply environment.
Key entities
- companySanDisk
Flash memory and storage manufacturer issuing below-consensus fiscal Q1 revenue guidance and allocation-based supply outlook.
- companySK Hynix
Memory maker partnering with SanDisk on an AI chip memory hardware blueprint mentioned as context for the stock’s earlier jump.
- executiveLuis Visoso
SanDisk CFO quoted on minimum expected revenue from signed new-business model agreements.
