Sandisk SNDK is set to report its third-quarter fiscal 2026 results on April 30.
For the to-be-reported quarter, SNDK expects revenues between $4.4 billion and $4.8 billion. The company anticipates the market to be more undersupplied than it was in the second quarter and expects bits to be down mid-single digits. The Zacks Consensus Estimate for revenues is pegged at $4.55 billion, suggesting 168.6% growth from the figure reported in the year-ago quarter.
Sandisk expects non-GAAP earnings between $12.00 and $14.00 per share. The consensus mark for earnings is pegged at $13.92 per share, up 1.8% over the past 30 days. SNDK reported a loss of 30 cents per share in the year-ago quarter.
Consensus Estimate Trend
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SNDK’s earnings have surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average being 371.33%.
Sandisk Corporation Price and EPS Surprise
Sandisk Corporation price-eps-surprise | Sandisk Corporation Quote
Let us see how things have shaped up for the upcoming announcement.
Key Factors to Note Ahead of SNDK’s Q3 Results
Sandisk is expected to have benefited from strong demand for NAND storage products that are capable of processing large volumes of data quickly and efficiently. NAND is the most scalable storage semiconductor, making it essential in AI architectures. NAND usage is driven by the need for higher storage per workload and the growing deployment of larger models. SNDK is riding on an accelerating enterprise SSD demand based on the aforesaid factors. The company is seeing strong adoption across all types of AI infrastructure builders, including cloud hyperscalers, edge and enterprise data centers, OEMs and system integrators who are deploying AI at scale.
The growing need for fast, high-density storage infrastructure places enterprise SSDs at the center of AI infrastructure buildouts. Sandisk’s expanding presence in this segment is supported by next-generation PCIe Gen5 drives and the forthcoming BiCS8 QLC Stargate solution. This is driving a clear shift in SNDK’s revenue mix toward higher-value data center deployments, signaling a structural pivot beyond traditional end markets. Data Center revenues jumped 64% sequentially and 76% year over year to $440 million in the second quarter of fiscal 2026.
In the edge end-market, demand-supply imbalance is continuing due to ongoing replacement cycles and strong AI adoption across PCs and mobile devices. Richer configurations in these devices are driving higher storage content per device. Mix shift toward premium products and higher-value configurations is supporting SNDK’s storage content growth and profitability in the consumer end-market.
These factors are expected to have driven Sandisk’s top-line growth in the to-be-reported quarter.
Sandisk Shares Outperform Sector & Peers
Sandisk shares have jumped 317% year to date (YTD), outperforming the Zacks Computer Storage industry’s return of 7.8% and the Zacks Computer and Technology sector’s appreciation of 8.8%. The company has outperformed its storage peers, including Western Digital WDC, Seagate STX and Micron Technology MU, over the same time frame, shares of which have returned 134.5%, 112.8% and 74%, respectively.
SNDK Stock’s Price Performance
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Sandisk shares are trading at a premium, as suggested by a Value Score of F. In terms of the forward 12-month price-to-sales (P/S), Sandisk is trading at 5.15X, higher than the industry’s 3.06X and Micron’s 3.66X. However, SNDK shares are trading at a lower multiple compared with Western Digital’s 8.96X and Seagate’s 9.37X.
SNDK Stock’s Valuation
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Strong AI Demand to Aid SNDK’s Prospects
Sandisk is expected to benefit from a transformative shift in the NAND flash memory market, surging demand from AI applications and its technological leadership in next-generation storage solutions. As rapid expansion continues in the AI space, investments in data centers and AI infrastructure are projected to surpass $1 trillion by 2030, creating substantial long-term demand for SNDK's products. Rapid growth of AI is creating a strong tailwind for SNDK’s high-capacity, power-efficient SSDs enabled by the BiCS8 technology. Growing interest in the company’s technology from global hyperscalers, neocloud and OEM customers is noteworthy.
Data centers, including hyperscalers, are replacing consumer devices as the largest buyers of NAND, with demand expected to grow more than 60% within a year. This structural change bodes well for SNDK as long-term contracts and higher pricing stability improve top-line growth as well as margin expansion visibility for investors. Moreover, continuing supply constraints due to limited capacity additions, high capital expenditure, and long build cycles bode well for Sandisk’s long-term prospects. The company intends to maintain its capital spending plan, which supports mid- to high-teens bit growth through the BiCS8 transition.
Conclusion
Sandisk is benefiting from strong AI-driven demand for NAND that is driving Data Center revenues. Demand-supply imbalance as well as shift towards premium configuration devices in edge and consumer end-markets bodes well for the company’s prospects. These factors are expected to push the stock upward and justify a premium valuation.
Sandisk currently sports a Zacks Rank #1 (Strong Buy) and a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
