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Sandisk Q2 Earnings Beat Estimates, Revenues Increase Y/Y, Shares Rise

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Key Takeaways

  • SNDK Q2 earnings of $6.20 beat estimates by 75% and rose sharply from $1.23 a year ago.
  • Revenues surged 61.2% Y/Y to $3.03B, driven by strong datacenter and edge segment performance.
  • Gross margin jumped to 51.1% from 32.5%, with operating margin rising to 32% from 9.5% Y/Y.

Sandisk (SNDK - Free Report) reported second-quarter fiscal 2026 non-GAAP earnings of $6.20 per share, which beat the Zacks Consensus Estimate by 75.14%. The company reported earnings of $1.23 per share in the year-ago quarter and $1.22 per share in the previous quarter.

Revenues surged 61.2% year over year and 31.1% sequentially to $3.03 billion and beat the Zacks Consensus Estimate by 13.49%. Bit shipments increased at low single digits, and average selling price per Gigabyte increased mid 30% in the reported quarter.    

Sandisk shares were up 22.19% at the time of writing this article.

Sandisk Corporation Price, Consensus and EPS Surprise

Sandisk Corporation Price, Consensus and EPS Surprise

Sandisk Corporation price-consensus-eps-surprise-chart | Sandisk Corporation Quote

 

SNDK’s Top Line Rides on Strong Datacenter & Edge Growth

End-market-wise, Sandisk reports under three heads – Datacenter, Edge and Consumer, which accounted for 14.5%, 55.5% and 30% of revenues, respectively.

Datacenter revenues jumped 76% year over year and 63.6% sequentially to $440 million. The figure beat the Zacks Consensus Estimate of 41.03%. SNDK benefited from strong adoption of its solutions among AI infrastructure builders, semi-custom customers and technology companies deploying AI at scale.

Edge revenues jumped 63.2% year over year and 21% sequentially to $1.68 billion. The figure beat the Zacks Consensus Estimate of 10.61%.

Consumer revenues jumped 51.7% year over year and 39.1% sequentially to $907 million. The figure beat the Zacks Consensus Estimate of 17.95%.

SNDK’s Gross & Operating Margins Expand Y/Y

The gross margin of 51.1% expanded from 32.5% reported in the year-ago quarter and 29.9% in the previous quarter. 

Operating expenses rose 9.8% year over year to $413 million. Sequentially, operating expenses declined 7.4%.

Operating margin of 32% expanded from 9.5% reported in the year-ago quarter and 24.1% in the previous quarter.

Sandisk’s Balance Sheet Remains Strong

As of Jan. 2, 2026, cash & cash equivalents were $1.54 billion compared with long-term debt of $583 million. 

In the second quarter of fiscal 2026, adjusted free cash flow was $843 million compared with $91 million in the year-ago quarter and $448 million in the previous quarter.

Sandisk Offers Positive Q3 Guidance

For the third quarter of fiscal 2026, Sandisk expects revenues between $4.4 billion and $4.8 billion. Gross margin is expected in the 65%-67% range. Operating expenses on a non-GAAP basis are expected in the $450 to $470 million range. 

Earnings are expected between $12 per share and $14 per share.

Zacks Rank & Other Stocks to Consider

Currently, Sandisk sports a Zacks Rank #1 (Strong Buy). 

Some other top-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their quarterly results are Amkor Technology (AMKR - Free Report) , Microchip Technology (MCHP - Free Report) and MKS (MKSI - Free Report) . Each of the three stocks sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Amkor, Microchip and MKS are set to report their respective quarterly results on Feb. 9, Feb. 5 and Feb. 17. In the trailing 12-month period, shares of Amkor, Microchip and MKS have jumped 100.9%, 43.2% and 115.6%, respectively.

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