Start here if you're new
what it is
Sandisk sells the flash storage that sits inside your laptop, phone, console, and cloud server.
how it gets paid
Last year Sandisk made $7.4B in revenue.
why it's growing
Revenue grew 10.4% last year. Demand for NAND storage snapped higher fast. Fiscal 2026 Q2 revenue of $3.035 billion was up 61% vs. prior year and topped the internal target.
what just happened
Sandisk posted $5.3B in latest-quarter revenue and crushed expectations with EPS of about $6.02 to $6.20.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
196.9x trailing p/e — you're paying up for this one
20.5% return on capital — every dollar works hard here
$65.00 fy2027 eps est
$32B fy2029 rev est
xvary composite: 60/100 — average
What they do
Sandisk sells the flash storage that sits inside your laptop, phone, console, and cloud server.
This is a scale game. Sandisk serves PCs, phones, game consoles, data centers, and cloud customers with about 11,000 employees, which spreads costs across a lot of bits. When supply stays tight, pricing power shows up fast in your portfolio, and fiscal 2026 Q2 revenue jumped 61% vs. prior year to $3.035 billion.
How they make money
$7.4B
annual revenue · their business grew +10.4% last year
total revenue
$7.4B
+10.4%
The products that matter
pc and smartphone storage
Edge (Client)
$4.5B · 61% of disclosed segment revenue
It's still the biggest business here at $4.5B, which means your results still lean heavily on consumer and PC demand.
61% of mix
enterprise and ai storage
Data Center SSDs
$2.9B segment base · SSD revenue +64% sequentially
This is the business the market cares about right now. SSD revenue rose 64% sequentially, which is why investors are suddenly treating a memory company like an AI supplier.
ai demand
next-gen memory pipeline
PCIe Gen5 TLC & BiCS8
second hyperscaler qualification
Gen5 TLC is now qualified at a second hyperscaler. That's not revenue by itself, but it matters because qualification is how future data center share gets earned.
share expansion
Key numbers
$65.00
fy2027 eps
That is the fiscal 2027 profit estimate. Put plainly, the whole story is riding on earnings.
196.9x
trailing p/e
P/E → how many years of current profit you are paying for → so what: you are paying a bubble multiple on old earnings and trusting the rebound.
18.7%
operating margin
Operating margin → profit after running the business → so what: the current business still loses money before the cycle fully flips.
$583M
long-term debt
Debt is only 1% of capital, which means balance-sheet stress is not the problem here. The cycle is.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- long-term debt $583M (1% of capital)
- net profit margin 25.8% — keeps 26 cents of every dollar in revenue
- return on equity 20% — $0.20 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for SNDK right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Sandisk posted $5.3B in latest-quarter revenue and crushed expectations with EPS of about $6.02 to $6.20.
Demand for NAND storage snapped higher fast. Fiscal 2026 Q2 revenue of $3.035 billion was up 61% vs. prior year and topped the internal target by more than $400 million.
$5.3B
revenue
$6.02
eps
41.8%
gross margin
the number that mattered
Revenue growth of 76% vs. prior year matters most because memory stocks live and die on pricing power, and pricing power finally showed up.
-
shares of sandisk corp. have been on a wild ride.indeed, despite cooling off of late, the stock has more than doubled in value since our last full-page review in december. the company's fundamentals couldn't be much better, as both revenues and earnings continue to best wall street estimates.
-
near-term prospects are excellent.
-
sandisk posted revenues of $3.035 billion in the fiscal 2026 second quarter (year ends june 30th).
-
the figure topped our target by over $400 million and advanced 61% vs. prior year.adjusted earnings of $6.20 per share also blew away consensus estimates and increased five fold from the year-earlier period.
-
sandisk is benefiting from a number of positive industry trends.
source: company earnings report, 2026
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What could go wrong
The top threat is NAND supply tightness colliding with a very full valuation. This company can execute well and still get punished if supply, demand, or pricing cools faster than investors expect.
med
NAND supply tightness
Goldman Sachs research says 2026 NAND supply is sold out, with shortages not easing until 2028. New production capacity from Sandisk and Micron is not expected until 2027–2028.
Tight supply helps pricing now, but it also leaves little room to grow units. If demand outruns supply for too long, revenue can get capped by physics rather than demand.
med
valuation premium
The stock trades at 10.2x sales versus 4.6x for peers and 1.8x for the wider U.S. tech group. That is a premium stacked on top of a cyclical business model.
A smaller beat, a margin miss, or weaker guidance can compress the multiple even if the business is still profitable.
med
ai storage demand cyclicality
The current surge is being driven by AI storage demand, and SSD revenue jumped 64% sequentially. That's real. It is also a fresh demand pocket that has not been tested through a downturn.
If hyperscaler spending pauses, the fastest-growing part of the story slows first.
med
client concentration
Edge still accounts for $4.5B, or 61% of disclosed segment revenue. Data center excitement is real, but the largest segment still lives with PC and smartphone demand.
If client demand softens, most of the revenue base feels it immediately.
With 61% of disclosed segment revenue tied to Edge and the stock at 10.2x sales, even a modest demand wobble can hit both revenue and the multiple.
source: institutional data · regulatory filings · risk analysis
Pay attention to
next check
q3 guidance versus reality
Management guided to $4.4B–$4.8B of revenue and 65–67% gross margin. If results land below either low end, the premium story loses its cleanest proof point.
mix
data center share of revenue
Data Center & Other is $2.9B versus $4.5B for Edge. If that gap keeps closing, the AI thesis is becoming earnings, not just narrative.
supply
new NAND capacity timing
The current setup assumes no meaningful new capacity until 2027–2028. Any change there could alter pricing faster than investors are modeling.
momentum
ssd growth after the 64% jump
A 64% sequential surge is the kind of number that resets expectations. The next few prints need to show this was demand strength, not a one-quarter air pocket reversal.
Analyst rankings
risk profile
average
stability score 3 means middle-of-the-pack risk. in human-speak, this is not a bunker stock and it is not a disaster candidate either.
valuation
stretched
196.9x trailing p/e and 10.2x sales tell you the market is pricing continuation, not hesitation.
fundamental quality
above average
B++ balance sheet grade, 39.0% net margin, and 52% return on equity say the current numbers are strong. The debate is durability, not present quality.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 337 buyers vs. 156 sellers in 4q2025. total institutional holdings: 0.1B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$192
$869
$589
current price
$531
target midpoint · 10% from current · 3-5yr high: $1190 (+100% · 19% ann'l return)
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