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

Sandisk SNDK 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.

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, Microchip Technology MCHP and MKS MKSI. 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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This article originally published on Zacks Investment Research (zacks.com).

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