NEW YORK, July 25, 2026, 14:06 EDT — Markets in the United States have closed trading for the day.
- SanDisk ended Friday at $1,436.56, a decline of 10.8%, though it rose 6.0% over the week.
- Initial estimate: Friday’s closing price represents 11.4 times the annualized guidance for adjusted fourth-quarter EPS.
- Microsoft NASDAQ:MSFT is set to report on July 29, with Apple NASDAQ:AAPL scheduled for July 30. SanDisk will release its results on August 5.
SanDisk’s stock dropped 10.8% on Friday, marking the biggest decline among four major storage firms. Chipmakers were sold off by investors amid heightened concern about possible gains from rising AI investment.
Despite this, the stock ended the week up 6.0%. The divide reflects a broader discussion: surging short-term earnings against worries of reaching a high point.
The difference in valuation is notable. SanDisk’s trailing price-to-earnings ratio is close to 49.9 times.
Initial estimate: taking the $31.50 midpoint from adjusted EPS guidance and annualizing it results in $126 per share. The stock’s closing price on Friday reflects 11.4 times that projected annual figure.
This is not a projection. It also contrasts non-GAAP guidance against the market price.
As a result, investors are pricing in a significant normalization of earnings. SanDisk shares remain 38.5% under their record close from June 25. The company’s guidance for the fourth quarter continues to project a 34.6% increase in adjusted EPS quarter-on-quarter.
| Company | Friday close | Friday move | Weekly move |
|---|---|---|---|
| SanDisk NASDAQ:SNDK | $1,436.56 | down 10.8% | up 6.0% |
| Micron Technology NASDAQ:MU | $920.95 | down 6.9% | up 8.5% |
| Western Digital NASDAQ:WDC | $519.80 | down 6.9% | up 8.9% |
| Seagate Technology NASDAQ:STX | $851.69 | down 6.8% | up 8.1% |
Friday’s closing levels and daily performance are based on July 24 figures. Weekly variation measures compare July 24 to July 17. SanDisk posted weaker results than all its peers across both benchmarks.
The earnings environment continues to show exceptional strength. Revenue for the fiscal third quarter increased 97% from the previous quarter to $5.95 billion. Adjusted earnings per share stood at $23.41.
The non-GAAP gross margin increased to 78.4% compared to 51.1%. Adjusted free cash flow totalled $2.96 billion.
Datacenter sales surged 233% to hit $1.47 billion. Edge revenue climbed 118% to reach $3.66 billion. Consumer revenue dropped by 10%.
Chief Executive David Goeckeler described the quarter as a “fundamental inflection point.” He noted that multi-year agreements with customers included solid financial commitments. SEC
Management forecasts fourth-quarter revenue between $7.75 billion and $8.25 billion. Adjusted EPS is projected in the $30 to $33 range, with gross margin expected between 79% and 81%.
Revenue increases by 34.5% at the midpoint, while gross margin climbs just 1.6 points. As a result, pricing, product mix and supply discipline outweigh headline sales in importance.
Two informative demand gauges arrive next week. Microsoft is set to report on July 29, followed by Apple on July 30. Microsoft’s results offer insights into datacenter investment, while Apple’s report sheds light on premium device trends.
SanDisk is set to announce results on August 5 and will host its Investor Day on August 13. Shareholders are expected to look for more information about the length of contracts, pricing strategy, and the $6 billion stock buyback program.
The Federal Reserve is set to convene on July 28-29, presenting an additional gauge for valuations. On Friday, rate futures implied a 38% probability of a 25-basis-point hike.
Andersen Capital Management CEO Peter Andersen described FOMO as turning into “fear of massive overbuilding.” SanDisk relies on ongoing investment to maintain robust demand for storage. Reuters
Risks: NAND prices are susceptible to rapid downturns, and additional supply can pressure margins. Extended contracts might cap gains if shortages arise. Rising interest rates or a slowdown in cloud demand could drive a further de-rating.
Currently, the stock reflects solid near-term earnings, though there are questions about their sustainability. The key test of whether this skepticism is warranted will come on August 5.
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