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Will Strong Data Center Revenues Boost SNDK's Top Line in Q3 Earnings?
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Key Takeaways
SNDK's Q3 may see strong data center growth driven by AI-led enterprise SSD demand.
Enterprise SSD revenues jumped 64% sequentially in Q2, with further gains expected in Q3.
Hyperscaler adoption of PCIe Gen5 and BiCS8 products boosts Sandisk's revenue visibility.
Sandisk (SNDK - Free Report) is expected to have benefited from strong Data Center revenues in the third quarter of fiscal 2026. The company is set to release third-quarter fiscal 2026 results on April 30.
Sandisk continues to strengthen its data center revenues by capitalizing on AI-driven demand through rapid enterprise SSD growth. This growth is supported by the successful qualification and ramp-up of high-performance PCIe Gen5 TLC drives with hyperscalers, expanding customer adoption across the AI ecosystem. The company is also advancing next-generation BiCS8 TLC and QLC products that increase storage content per deployment.
Click here to know how SNDK’s overall fiscal third-quarter performance is likely to have been shaped.
SNDK’s Data Center Revenues to Ride on Enterprise SSD
In the second quarter of fiscal 2026, enterprise SSD revenues rose 64% sequentially, and management expects another sharp increase in the third quarter of fiscal 2026, fueled by hyperscaler demand and AI-led storage expansion.
SNDK’s to-be-reported quarter’s Data Center results are expected to have benefited from a rich and expanding partner ecosystem in the enterprise SSD space. This ecosystem is anchored by deep engagements with multiple hyperscalers that are actively qualifying and deploying its next-generation PCIe Gen5 TLC solutions. Additional hyperscaler qualifications are expected, reinforcing multi-node demand visibility. This partner base is further strengthened by early traction in BiCS8 TLC and QLC “Stargate” programs, which are already in qualification with major hyperscalers, indicating broad adoption potential across cloud-scale infrastructure customers.
In addition, long-term strategic relationships, including joint venture alignment with Kioxia and the shift toward multi-year agreements with prepayments, enhance supply assurance, co-development depth and recurring demand visibility. These factors collectively form a structurally strong and diversified enterprise SSD partner base.
These factors are expected to have driven Sandisk’s Data Center revenue growth in the to-be-reported quarter. The Zacks Consensus Estimate for fiscal third-quarter Data Center revenues is pegged at $4.86 billion, indicating impressive year-over-year growth of 26.04%.
What Our Model Says About SNDK
Our proven model predicts an earnings beat for Sandisk this time around. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s the exact case here.
Sandisk currently has an Earnings ESP of +4.96% and a Zacks Rank #1. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:
View the Zacks #1 Rank List
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Will Strong Data Center Revenues Boost SNDK's Top Line in Q3 Earnings?
Key Takeaways
Sandisk (SNDK - Free Report) is expected to have benefited from strong Data Center revenues in the third quarter of fiscal 2026. The company is set to release third-quarter fiscal 2026 results on April 30.
Sandisk continues to strengthen its data center revenues by capitalizing on AI-driven demand through rapid enterprise SSD growth. This growth is supported by the successful qualification and ramp-up of high-performance PCIe Gen5 TLC drives with hyperscalers, expanding customer adoption across the AI ecosystem. The company is also advancing next-generation BiCS8 TLC and QLC products that increase storage content per deployment.
Click here to know how SNDK’s overall fiscal third-quarter performance is likely to have been shaped.
SNDK’s Data Center Revenues to Ride on Enterprise SSD
In the second quarter of fiscal 2026, enterprise SSD revenues rose 64% sequentially, and management expects another sharp increase in the third quarter of fiscal 2026, fueled by hyperscaler demand and AI-led storage expansion.
Sandisk Corporation Revenue (TTM)
Sandisk Corporation revenue-ttm | Sandisk Corporation Quote
SNDK’s to-be-reported quarter’s Data Center results are expected to have benefited from a rich and expanding partner ecosystem in the enterprise SSD space. This ecosystem is anchored by deep engagements with multiple hyperscalers that are actively qualifying and deploying its next-generation PCIe Gen5 TLC solutions. Additional hyperscaler qualifications are expected, reinforcing multi-node demand visibility. This partner base is further strengthened by early traction in BiCS8 TLC and QLC “Stargate” programs, which are already in qualification with major hyperscalers, indicating broad adoption potential across cloud-scale infrastructure customers.
In addition, long-term strategic relationships, including joint venture alignment with Kioxia and the shift toward multi-year agreements with prepayments, enhance supply assurance, co-development depth and recurring demand visibility. These factors collectively form a structurally strong and diversified enterprise SSD partner base.
These factors are expected to have driven Sandisk’s Data Center revenue growth in the to-be-reported quarter. The Zacks Consensus Estimate for fiscal third-quarter Data Center revenues is pegged at $4.86 billion, indicating impressive year-over-year growth of 26.04%.
What Our Model Says About SNDK
Our proven model predicts an earnings beat for Sandisk this time around. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s the exact case here.
Sandisk currently has an Earnings ESP of +4.96% and a Zacks Rank #1. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:
Arista Networks (ANET - Free Report) has an Earnings ESP of +2.79% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks shares have gained 31.6% in the year-to-date period. Arista Networks is scheduled to report its first-quarter 2026 results on May 5.
Audioeye (AEYE - Free Report) has an Earnings ESP of +9.62% and a Zacks Rank #2 at present.
Audioeye shares have lost 27.1% in the year-to-date period. Audioeye is set to report its first-quarter 2026 results on May 13.
CDW (CDW - Free Report) has an Earnings ESP of +1.90% and a Zacks Rank #2 at present.
CDW shares have lost 2.2% in the year-to-date period. CDW is set to report first-quarter fiscal 2026 results on May 6.