SanDisk $SNDK drops 8% despite Q4 EPS beat; Q1 revenue guide trails

SanDisk $SNDK fell 8% in after-hours trading after fiscal Q4 results beat estimates but the next-quarter revenue range landed just below consensus. The company said in its SEC-filed earnings release that Q4 revenue was $8.97B, up 51% sequentially, while GAAP net income was $6.90B, or $43.97 per diluted share. Non-GAAP diluted net income per share was $39.25.

The earnings surprise was concrete: market coverage cited non-GAAP EPS expectations near $34.59 and revenue expectations near $8.42B, putting the EPS beat at $4.66 and the revenue beat at roughly $550M. Revenue outperformance came from both higher volumes and higher pricing, with the company saying the sequential growth split was about one-third volume and two-thirds pricing.

For fiscal 2026, SanDisk reported revenue of $20.25B, up 175% year over year, and GAAP net income of $11.43B, or $73.76 per diluted share. Datacenter revenue was up 437%, making AI storage demand the central operating driver behind the year. The company also said it signed five additional New Business Model agreements after the April earnings call, bringing the recent total to ten agreements.

The market reaction centered on guidance. SanDisk expects fiscal Q1 2027 revenue of $10.30B to $10.80B and non-GAAP diluted EPS of $44.00 to $46.00. Yahoo Finance market coverage said the revenue midpoint trailed the $10.82B consensus even though Q4 beat headline estimates.

Capital return was another major number. SanDisk’s board approved an additional $14B repurchase authorization, bringing remaining authorization to $15.5B. The next item for investors is whether Q1 pricing and datacenter demand can support the implied step-up from $8.97B in Q4 revenue to at least $10.30B in Q1 without further guidance risk.

Not investment advice. Verify all figures with primary sources before acting.