NEW YORK, Jan 29, 2026, 16:33 EST
- Sandisk reported fiscal Q2 revenue at $3.03 billion and an adjusted earnings per share of $6.20. Datacenter revenue surged 64% compared to the previous quarter.
- For fiscal Q3, the company projects revenue between $4.40 billion and $4.80 billion, with adjusted earnings per share expected to range from $12 to $14.
- After-hours trading saw shares climb further following a roughly 2.7% gain at the close.
Sandisk shares surged in after-hours trading Thursday following a strong quarterly profit report and a forecast of significant revenue growth, driven by rising demand for AI-related storage.
These results carry weight as Wall Street has been loading up on storage and memory stocks linked to the AI surge, wagering that spending on cloud and datacenters will continue to drive up NAND flash memory prices for solid-state drives.
Sandisk, spun off from Western Digital just last year, has quickly turned into a litmus test for how long tight supply and strong pricing can hold in a market infamous for sudden swings.
Sandisk reported Q2 revenue of $3.03 billion, up 61% from a year ago, with GAAP net income hitting $803 million. Adjusted earnings came in at $6.20 per share. Datacenter revenue surged 64% quarter-over-quarter, reaching $440 million. CEO David Goeckeler highlighted the quarter’s results as a sign of the company’s agility in leveraging a stronger product mix and faster enterprise SSD deployments.
Sandisk projected revenue between $4.40 billion and $4.80 billion for the fiscal third quarter, with adjusted earnings of $12 to $14 per share. It also anticipates a non-GAAP gross margin ranging from 65% to 67% during that timeframe.
Sandisk shares ended the day at $539.30 and climbed further in after-hours trading. At their peak, they surged nearly 16% in the extended session, according to after-hours data.
Morgan Stanley analyst Joseph Moore boosted his price target to $483 from $273 before the report, citing “very strong” NAND market fundamentals as enterprise solid-state drive demand squeezes supply. He highlighted big cloud orders pushing into consumer pricing. https://sherwood.news/markets/morgan-stanl…
Zacks Investment Research noted this week that Sandisk’s earnings outlook surged ahead of the report, lifting its consensus estimate for the quarter. The stock has climbed over 170% in the past three months. However, Zacks cautioned that the shares might experience sharp volatility following the earnings release.
In a separate Seeking Alpha column released before the earnings report, the case was made for buying Sandisk, pointing to tight supply, rising memory prices, and strong hyperscaler demand driven by AI workloads. The piece did note, however, that the stock’s valuation appeared stretched.
Storage names are catching a bid on AI-related demand. In recent days, Seagate and Western Digital have gained ground as investors seek exposure to datacenter expansions that extend past just GPUs and servers.
The trade runs both ways. If NAND supply ramps up faster than expected, prices soften, or cloud orders stall, margins could take a quick hit. Sandisk warned its outlook is vulnerable to demand swings, pricing fluctuations, and supply-chain hiccups.
Sandisk finalized its split from Western Digital on Feb. 21, 2025. The company highlighted its reliance on strategic ties with major partners like Kioxia. On the upcoming earnings call, investors will focus on updates around supply discipline and enterprise SSD launches.
