Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Fiscal 2026 was Sandisk's first full year as an independent public company after its February 2025 separation from Western Digital, and the year was defined by surging demand for NAND flash storage tied to AI infrastructure. Management attributed the jump to higher sales and pricing in Datacenter and Edge, with revenue more than doubling year over year. Gross margin expanded from roughly 30% to over 71%, and operating income swung from a loss to a substantial profit, while the prior-year $1.8B goodwill impairment did not recur. Tension remains around trade policy and tariff exposure, and the company's working capital cycle lengthened as it built inventory to meet demand.
Revenue
$20.25B
+175.30% YoY
EPS (Diluted)
$73.76
+751.59% YoY
Gross Margin
71.5%
+41.4 pts YoY
Operating Income
$12.39B
+999.71% YoY
Audit Opinion: Unqualified opinion on the consolidated financial statements and internal control over financial reporting.(Report of Independent Registered Public Accounting Firm)
Source: SEC XBRL
Sandisk (SNDK) reported FY2026 revenue of $20.25B, up 175.3% year over year. Operating margin was 61.2%, against -18.7% a year earlier. Operating cash flow was $11.67B, up 13794.0% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 39.25 | 35.14 | Beat +11.7% |
| Mar 2026 | 23.41 | 14.83 | Beat +57.9% |
| Dec 2025 | 6.20 | 3.52 | Beat +76.3% |
| Sep 2025 | 1.22 | 0.95 | Beat +27.8% |
Compiled by AI from 10-K Item 7 of this filing
Management attributed the 175% revenue increase to a 437% jump in Datacenter, 195% in Edge, and 29% in Consumer; revenue per gigabyte rose almost 150% in Datacenter, almost 180% in Edge, and low-fifties percent in Consumer.
Source: 10-K Item 7 MD&A
Commencing in fiscal 2026, Sandisk entered into long-term agreements (New Business Models) with several Datacenter and Edge customers, which include pricing mechanisms with fixed and variable components and are expected to become the predominant way of doing business, improving revenue predictability.
Source: 10-K Item 7 MD&A
The Company settled in full the remaining principal of its $2.0B Term Loan Facility on March 4, 2026 using cash on hand and recognized a $46 million loss on debt extinguishment from the write-off of unamortized issuance costs. Long-term debt is now $0.
Source: 10-K Item 7 MD&A
Fiscal 2026 had no goodwill impairment charges, compared with a $1.8 billion goodwill impairment recognized in fiscal 2025.
Source: 10-K Item 7 MD&A
Days inventory outstanding rose 43 days to 178 days as Sandisk built inventory to meet demand, extending the cash conversion cycle to 162 days from 136 days in 2025.
Source: 10-K Item 7 MD&A
Compiled by AI from 10-K Item 1A of this filing · 3 high, 2 medium, 0 low
The U.S. has pending Section 232 and Section 301 investigations that may change tariff rates for Sandisk products. Although most products sold in the U.S. are currently exempt, additional tariffs or loss of exemptions would raise cost of goods sold and could reduce demand if prices increase.
Source: 10-K Item 1A Risk Factors
Sandisk relies on a limited number of qualified suppliers for critical materials, components, and manufacturing services, including commodity DRAM. Supply shortages, supplier consolidation, or failure by sole-source suppliers to meet requirements could disrupt production, raise costs, and force product mix shifts away from higher-margin products.
Source: 10-K Item 1A Risk Factors
Long-term agreements with Datacenter and Edge customers expose Sandisk to execution, financial, and market risks, especially as NBMs become the predominant way of doing business. These agreements do not eliminate risks from customer demand, market conditions, or operational execution.
Source: 10-K Item 1A Risk Factors
Sandisk guarantees half of the outstanding obligations under Flash Ventures equipment lease agreements. A covenant breach or cancellation event could accelerate lease obligations and trigger a call on the Company's guarantees, potentially hurting financial position, and the revolving credit facility may restrict operations.
Source: 10-K Item 1A Risk Factors
Sandisk experiences cybersecurity incidents of varying degrees, and its products, systems, and third-party partners are targets for increasingly sophisticated attacks. A successful breach could cause operational disruption, loss of proprietary or customer data, remediation costs, litigation, and reputational damage.
Source: 10-K Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 20.25 $B | 7.36 $B | +175.30% |
Cost of Revenue $B | 5.78 $B | 5.14 $B | +12.31% |
Gross Profit $B | 14.47 $B | 2.21 $B | +554.25% |
Operating Income $B | 12.39 $B | -1.38 $B | +999.71% |
Net Income $B | 11.43 $B | -1.64 $B | +796.71% |
EPS (Basic) $ | 77.78 $ | -11.32 $ | +787.10% |
EPS (Diluted) $ | 73.76 $ | -11.32 $ | +751.59% |
R&D Expense $B | 1.33 $B | 1.13 $B | +17.31% |
SG&A Expense $M | 676.00 $M | 573.00 $M | +17.98% |
Answers draw on this SEC filing and the data on this page
SNDK reported a remarkable turnaround in Q3 FY2026 with a 251% increase in revenue and a significant shift from a net loss to a net income of $3.615 billion.
SNDK reported a significant increase in profitability for Q2 FY2026, with net income up 672.1% year-over-year, driven by strong revenue growth and improved margins.
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