Sandisk Stock Rebounds as Analysts Reframe the Earnings Selloff

MILPITAS, California, August 10, 2026, 15:57 EDT

Sandisk shares rose 1.9% to $1,234.91 in late trading as analysts revisited the earnings selloff.
The $1,600 Argus target implies 29.6% upside from the late-session price.
First-quarter revenue guidance still implies 17.7% sequential growth at its midpoint.

Sandisk Corporation NASDAQ:SNDK shares rebounded Monday as analysts revisited last week’s earnings selloff. Cantor Fitzgerald reiterated Buy, while fresh reporting highlighted Argus Research’s upgrade and $1,600 target.

The move tests whether investors have reset expectations enough. Sandisk beat fiscal fourth-quarter forecasts, yet its outlook fell short of the market’s more aggressive hopes.

The operating picture remains unusually strong. First-quarter revenue guidance of $10.30 billion to $10.80 billion has a $10.55 billion midpoint. That is 17.7% above fourth-quarter revenue.

Margins are the near-term check. The midpoint of Sandisk’s 83% to 85% non-GAAP gross-margin forecast is 60 basis points below the fourth quarter.

Financial measure	Q4 FY2026	Q3 FY2026	Sequential change
Revenue	$8.965 billion	$5.950 billion	+51%
Gross margin	84.6%	78.4%	+6.2 percentage points
Non-GAAP operating income	$7.104 billion	$4.218 billion	+68%
Non-GAAP diluted EPS	$39.25	$23.41	+68%

Sandisk’s official results support the comparison above. Revenue climbed 51% sequentially, while gross margin gained 6.2 percentage points. Two-thirds of revenue growth came from higher prices.

Datacenter sales supplied the clearest growth signal. They more than doubled from the third quarter, while consumer revenue fell 32%.

End market	Q4 FY2026 revenue	Q3 FY2026 revenue	Sequential change
Datacenter	$2.977 billion	$1.467 billion	+103%
Edge	$5.432 billion	$3.663 billion	+48%
Consumer	$556 million	$820 million	-32%
Total	$8.965 billion	$5.950 billion	+51%

The segment table comes from Sandisk’s earnings release. Datacenter accounted for one-third of quarterly revenue, up from roughly one-quarter in Q3. That mix shift matters because AI infrastructure now drives the fastest part of the business.

Chief Executive David Goeckeler said Sandisk had “established datacenter as a key growth pillar, and deepened our customer partnerships.” The company also added five long-term customer agreements during the quarter. Sandisk

Wall Street remains broadly positive, but targets span a wide range. Cantor Fitzgerald reiterated Buy on Monday with a $2,900 target. Argus’s new $1,600 target sits closer to the market.

Analyst	Firm	Recommendation	Action	Target	Date
C.J. Muse	Cantor Fitzgerald	Buy	Reiterated	$2,900	Aug. 10
Jim Kelleher	Argus Research	Buy	Upgraded	$1,600	Aug. 7
James Schneider	Goldman Sachs	Buy	Maintained	$2,200	Aug. 6
Aaron Rakers	Wells Fargo	Hold	Reiterated	$1,400	Aug. 6
Srini Pajjuri	RBC Capital	Hold	Maintained	$1,300	Aug. 5

Google Finance lists 14 Buy and two Hold ratings from 16 analysts. Its published targets range from $1,300 to $3,050, showing how sharply views differ on the durability of NAND pricing.

The market reaction has been severe. Sandisk fell 13.3% on Thursday despite guidance above estimates compiled by LSEG. Western Digital Corporation NASDAQ:WDC dropped 19.1% in the same session.

Divya Mathur, a portfolio manager at ClearBridge Investments, said the volatility “appears disconnected from any material change in long-term fundamentals.” Her point now faces a live market test. Reuters

Peers stabilized Monday. Western Digital traded higher, while Micron Technology Inc. NASDAQ:MU and Seagate Technology Holdings plc NASDAQ:STX were near flat late in the session.

The balance sheet adds support. Sandisk expanded its repurchase authorization by $14 billion, leaving $15.5 billion available. That equals about 8.5% of the late-session market value.

Risks: NAND prices can reverse quickly. A slower pricing cycle, weaker AI spending or a larger margin decline would challenge both the earnings path and analyst targets.

The next test arrives soon. Sandisk’s August 13 investor day must show that datacenter growth and long-term customer deals can outlast the present pricing surge.

TS2 TECH • EXTENDED COVERAGE

Further analysis

Editorial insight

What led to the increase in Sandisk shares on August 10?

Argus Research raised its rating on Sandisk to Buy and established a $1,600 price target following the stock’s selloff after earnings. Shares were up 1.9% to $1,234.91 close to the end of Monday’s session. Argus cited optimism in a prolonged flash-memory cycle, though the target remains contingent on robust NAND pricing.

Is Sandisk still forecasting growth in its outlook?

Yes. The midpoint for first-quarter revenue guidance stands at $10.55 billion, representing a 17.7% increase from fourth-quarter revenue. Gross-margin guidance is set at a midpoint of 84%, which is 60 basis points lower than Q4. Investors are left to weigh if brisk revenue growth is enough to balance out this slight margin decrease.

What factors are influencing Sandisk's earnings?

Datacenter revenue totaled $2.977 billion in Q4, rising 103% from the previous quarter. Roughly two-thirds of this quarter-over-quarter revenue increase came from higher prices. While this mix boosts profits rapidly, it also makes earnings vulnerable if NAND prices decline in the future.

What will likely act as the next catalyst for Sandisk shares?

Sandisk is set to hold its investor day on August 13, marking the next key event. Investors are looking for further information about long-term customer deals, datacenter demand, and capital allocation. Persistent uncertainty centers on soft pricing forecasts or reduced AI infrastructure investment.