SanDisk Stock Dives After Tepid Forecast Despite AI-Fueled Q4 Beat

Scandisk Corp. (SNDK August 06, 2026, $1,211 Pre-market)

SNDK Q4 2026 Earnings Review

Memory-chip maker Sandisk (SNDK) beat Wall Street estimates for the fiscal fourth quarter thanks to strong AI data-center demand, but its in-line outlook sent the stock lower in after-hours trading.

The company earned an adjusted $39.25 a share on sales of $8.97 billion in the quarter ended July 3, beating FactSet estimates of $34.96 a share on $8.48 billion in sales. In the year-ago quarter, SanDisk posted an adjusted $0.29 a share on $1.9 billion in revenue.

Key highlights:

• SanDisk’s fiscal Q4 marked its fifth consecutive quarter of accelerating sales, driven by memory chips and storage for AI data centers. The company said one-third of sequential revenue growth came from higher volumes and two-thirds from higher prices.
• Year-over-year, SanDisk's earnings jumped 13,434% and sales rose 372%; sequentially, earnings climbed 68% and revenue increased 51%.
• Soaring demand from cloud giants like Amazon, Meta and Alphabet is outstripping memory supply, prompting price hikes that have boosted Sandisk.

What happened: Sandisk (SNDK) shares tumbled about 10.33% in premarket trading.

Why: The flash-memory maker gave fiscal Q1 revenue guidance that missed analyst estimates.

Sandisk: Key Q4 Results and Q1 Guidance

Q1 revenue guidance: $10.30B–$10.80B (midpoint above LSEG analyst average of $10.47B).

Q1 adjusted EPS guidance: $44–$46 (vs. $43.12 consensus).

Q4 revenue: $8.97B (beat $8.39B estimate).

Q4 adjusted EPS: $39.25 (beat $34.45 estimate).

Q4 data-center revenue: $2.98B, more than doubled sequentially from Q3.

Growth drivers: Generative AI demand boosting enterprise SSDs and flash memory capacity needs.

Business development: Signed five additional agreements since April (three new customers, two expansions).

Capital return: Board approved an additional $14B share-repurchase program; $15.5B total remaining authorization.

Analysts Expectation – post Q4 earnings:

• RBC raises SanDisk price target to $1,300 from $1,000.
• A Citi analyst kept a "buy" on (SNDK), cutting the price target to $2,100 from $2,500.
• Evercore ISI cut its SanDisk (SNDK) price target to $2,800 while maintaining an Outperform rating.
• Wells Fargo cut its SanDisk (SNDK) price target to $1,400 from $1,620, keeping an Equal Weight rating.

Quarterly Performance Summary:

Revenue was about $9.0B, up 51% sequentially and 372% year‑over‑year; roughly one‑third of the sequential gain came from volume and two‑thirds from higher pricing amid tight NAND supply.

Datacenter Becomes Primary Growth Driver:

Management called datacenters the fastest-growing end market and a core long-term pillar; fiscal 2026 datacenter revenue hit $5.153B, up 437% year-over-year.

Strategic Initiatives: New Business Models:

SanDisk highlighted its New Business Models (NBMs) - long-term supply deals that boost revenue visibility and include financial guarantees. It has eight NBM customers covering $93.9 billion in minimum contracted revenue at floor pricing. RPO was $59.8 billion at quarter-end (rising to $91.1 billion with post-quarter deals), and the agreements include $16.5 billion in financial guarantees. Management says NBMs will account for over half of bits in FY27 and about two-thirds in FY28, with a weighted-average duration of more than four years.

Source: SNDK Q4-26 Earnings Deck

SHARIAH Compliance Metrics

SNDK qualifies all three Musaffa Shariah screening parameters based on AAOIFI methodology as of Q3 2026 report.

• Business Activity 99.63% Halal, Doubtful is 0.02%, and non-Halal is 0.35%.
• Interest-bearing securities and assets = 12.06% (Shariah-complaint is < 30%).
• Interest-bearing debt = 0.00% (Shariah-complaint is < 30%).

You can get a more detailed view of the Shariah status on the Sandisk stock page.

Disclaimer: Musaffa Academy articles are provided for informational purposes only, and are not research reports or legal, tax, investment, or financial advice. Content may include historical or hypothetical data; past performance does not guarantee future results.

Stock screenings, halal status, grades, and classifications are based on AAOIFI methodology and the oversight of Musaffa’s Shariah scholars. The content is not tailored to your financial situation, risk tolerance, or investment objectives. Always conduct your own research or consult a qualified financial advisor before making decisions.

Musaffa Islamic Social Responsible Investing (MISRI) proprietary rankings are internally developed by Musaffa and are currently in beta. While we continuously work to improve accuracy and reliability, no guarantees are made regarding completeness or correctness.

Logos and brand names are used for identification only and do not imply endorsement. Information is accurate as of the publication date and may change. All content, materials, and methodologies are the exclusive property of Musaffa and are protected by copyright law.

For full details, please visit: https://musaffa.com/disclaimer