Sandisk (SNDK) Q4 2026: Revenue Soars 372% YoY — Strongly Positive

In the fiscal fourth quarter of 2026, Sandisk Corporation reported a remarkable revenue of $8.97 billion, representing a staggering increase of $7.07 billion or 372% year-over-year compared to $1.90 billion in Q4 2025. This performance not only highlights the company's robust growth trajectory but also underscores its successful strategic pivot towards higher-value customers, particularly in the datacenter segment.

Analyst View

This quarter is undoubtedly a strong win for shareholders. The significant revenue growth, coupled with a GAAP net income of $6.90 billion (up $6.92 billion from a net loss of $23 million in Q4 2025), showcases Sandisk's ability to capitalize on market opportunities and improve its profitability. The diluted net income per share also surged to $43.97, a remarkable increase from $(0.16) in the same quarter last year. Such performance metrics indicate a solid operational turnaround and a promising outlook for the company.

Key Financial Metrics

• Q4 2026 Revenue: $8.97 billion (up 372% YoY)
• GAAP Net Income: $6.90 billion (up $6.92 billion YoY)
• Diluted Net Income per Share: $43.97 (up from $(0.16) YoY)
• Gross Margin: 84.6% (up 58.4 percentage points YoY)
• Operating Income: $545 million (up 14% YoY)
• Operating Expenses: $7.04 billion (up 71% YoY)

Shareholder Returns and Future Guidance

In a move that reflects confidence in its financial health, Sandisk's Board of Directors has approved an additional $14 billion share repurchase program, bringing the total remaining authorization to $15.5 billion. This buyback initiative is likely to enhance shareholder value and signal management's commitment to returning capital to investors.

Looking ahead, Sandisk expects first-quarter 2027 revenue to be in the range of $10.30 billion to $10.80 billion, with anticipated Non-GAAP diluted net income per share between $44.00 and $46.00. This guidance suggests continued momentum and growth potential as the company capitalizes on its strategic initiatives.

Forward Catalysts

Investors should closely monitor Sandisk's performance in the datacenter segment, which has shown explosive growth of 437% year-over-year, contributing significantly to overall revenue. Additionally, the company's ongoing efforts to expand its New Business Model agreements will be crucial in sustaining growth and enhancing customer relationships. The upcoming earnings call will provide further insights into these initiatives and the company's strategic direction.

In conclusion, Sandisk's Q4 2026 results reflect a transformative period for the company, characterized by exceptional revenue growth, improved profitability, and a strong commitment to shareholder returns. As the company continues to execute its strategic vision, it remains well-positioned for future success.

Note: All amounts in the following tables are in millions.

CONSOLIDATED STATEMENTS OF OPERATIONS	(in millions, except per share amounts; unaudited)
Three Months Ended July 3, 2026	June 2026 Year Ended July 3, 2025	June 2025
Revenue net	$8,965	$1,901	$20,248	$7,355
Cost of revenue	$1,383	$1,403	$5,776	$5,143
Gross profit	$7,582	$498	$14,472	$2,212
Operating expenses	Research and development	$348	$285	$1,328	$1,132
Selling and administrative	$197	$162	$676	$573
Goodwill impairment	$—	$—	$—	$1,830
Loss on debt extinguishment	$—	$—	$46	$—
Business separation costs	$—	$17	$25	$67
Employee termination and other costs	$—	$16	$-2	$21
(Gain) loss on business divestitures	$—	$—	$10	$-34
Total operating expenses	$545	$480	$2,083	$3,589
Operating income (loss)	$7,037	$18	$12,389	$-1,377
Interest and other income (expense), net:	Gain (loss) on equity securities, net	$804	$-1	$808	$-2
Interest income	$30	$11	$70	$22
Interest expense	$-2	$-41	$-73	$-63
Other income (expense), net	$-20	$-5	$-177	$-59
Total interest and other income (expense), net	$812	$-36	$628	$-102
Income (loss) before taxes	$7,849	$-18	$13,017	$-1,479
Income tax expense	$946	$5	$1,584	$162
Net income (loss)	$6,903	$-23	$11,433	$-1,641
Net income (loss) per common share:	Basic	$46.96	$-0.16	$77.78	$-11.32
Diluted	$43.97	$-0.16	$73.76	$-11.32
Weighted average shares outstanding:	Basic	147	145	147	145
Diluted	157	145	155	145

CONSOLIDATED BALANCE SHEETS	(in millions; except par value, unaudited)
July 3, 2026	June 27, 2025
ASSETS	Current assets:	Cash and cash equivalents	$4,762	$1,481
Accounts receivable, net	$4,708	$1,068
Inventories	$2,698	$2,079
Income tax receivable	$22	$66
Other current assets	$590	$392
Total current assets	$12,780	$5,086
Marketable equity securities	$1,777	$—
Property, plant and equipment, net	$674	$619
Notes receivable and investments in Flash Ventures	$678	$654
Goodwill	$4,994	$4,999
Income tax receivable, non-current	$169	$80
Deferred tax assets	$66	$58
Other non-current assets	$1,369	$1,489
Total assets	$22,507	$12,985
LIABILITIES AND SHAREHOLDERS’ EQUITY	Current liabilities:	Accounts payable	$516	$366
Accounts payable to related parties	$460	$400
Accrued expenses	$313	$274
Accrued compensation	$657	$173
Refund liabilities	$1,500	$126
Contract liabilities	$849	$25
Income tax payable, current	$1,286	$43
Current portion of long-term debt	$—	$20
Total current liabilities	$5,581	$1,427
Deferred tax liabilities	$161	$17
Income tax payable, non-current	$258	$131
Long-term debt	$—	$1,829
Non-current contract liabilities	$393	$—
Other liabilities	$378	$365
Total liabilities	$6,771	$3,769
Shareholders’ equity:	Common stock, $0.01 par value; authorized — 450 shares; issued and outstanding — 149 shares and 146 shares, respectively (issued and outstanding as of June 27, 2025 - 146 shares)	$1	$1
Treasury stock	$-4,537	$—
Additional paid-in capital	$10,879	$11,248
Accumulated other comprehensive loss	$-256	$-249
Retained earnings (Accumulated deficit)	$9,649	$-1,784
Total shareholders’ equity	$15,736	$9,216
Total liabilities and shareholders’ equity	$22,507	$12,985

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