Sandisk Corp (NASDAQ:SNDK) Beats Q4 2025 Revenue and EPS Estimates Despite Stock Decline

Sandisk Corp (NASDAQ:SNDK) Reports Q4 2025 Earnings: Revenue and EPS Beat Estimates

Sandisk Corp delivered a stronger-than-expected fiscal fourth quarter, with both revenue and non-GAAP earnings per share (EPS) surpassing analyst estimates. The company reported revenue of $1.901 billion, up 12% quarter-over-quarter and 8% year-over-year, exceeding the consensus estimate of $1.849 billion. Non-GAAP EPS came in at $0.29, significantly higher than the estimated $0.0416.

Key Financial Highlights

• Revenue Growth: Q4 revenue rose to $1.901 billion, beating expectations and showing sequential and year-over-year improvements.
• Profitability: Non-GAAP operating income surged to $100 million, up 4,900% from the previous quarter, while GAAP operating income rebounded to $18 million from a loss of $1.881 billion in Q3.
• Gross Margin Expansion: Non-GAAP gross margin improved to 26.4%, up 3.7 percentage points sequentially, though it declined year-over-year due to pricing pressures and cost adjustments.
• End Market Performance:
  • Cloud revenue grew 25% year-over-year to $213 million.
  • Client revenue increased 3% year-over-year to $1.103 billion.
  • Consumer revenue rose 12% year-over-year to $585 million.

Market Reaction

Despite the earnings beat, Sandisk’s stock declined 9.2% in after-hours trading. This reaction may reflect broader market concerns, including:

• Gross Margin Pressure: While margins improved sequentially, they remain below prior-year levels, signaling ongoing cost challenges.
• Forward Guidance: The company provided Q1 2026 revenue guidance of $2.10–$2.20 billion, slightly above the analyst estimate of $2.024 billion, but investors may have expected stronger growth projections.
• Macroeconomic Uncertainty: Persistent inflation and supply chain risks could be weighing on sentiment despite solid execution.

Outlook vs. Analyst Estimates

Sandisk’s Q1 2026 revenue forecast aligns closely with consensus estimates, while its non-GAAP EPS guidance of $0.70–$0.90 suggests confidence in continued profitability. Analysts project full-year 2026 revenue at $8.494 billion, implying steady growth if execution remains strong.

Strategic Developments

CEO David Goeckeler highlighted progress in new product ramps, including BiCS8 flash memory and High Bandwidth Flash (HBF) for AI inference workloads. The company’s separation from Western Digital in February 2025 has allowed it to operate as an independent entity, though restructuring costs impacted GAAP results earlier in the year.

Conclusion

Sandisk’s Q4 results demonstrate resilience in demand, particularly in cloud and client markets, but investor caution persists amid margin pressures and macroeconomic headwinds. The stock’s post-earnings dip suggests the market was hoping for more robust guidance or margin recovery signals.

For more detailed earnings estimates and historical performance, visit Sandisk’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.