SanDisk’s Latest Results Reset Expectations Again

Here’s a number that makes you look twice: in a single quarter, SanDisk (NASDAQ: SNDK) generated nearly $3 billion in free cash flow, posted EPS of $23.41 vs estimates of $14.62, and then guided the next quarter to as much as $8.25 billion in revenue. About a year ago, the stock was at $40. Now it’s around $1,400. That’s not hype, it’s timing, execution, and a massive shift in demand all lining up. See, SanDisk’s Surge Explained: What’s Fueling the Move?

The Quarter That Changed The Story

The April 30 Q3 FY2026 report was the turning point. Revenue hit $5.95 billion, up 97% sequentially and 251% year over year. EPS came in at $23.41, a roughly 60% beat.

The real driver was data centers. Enterprise SSD revenue jumped 233% sequentially to $1.467 billion, now 25% of total revenue, up from about 10% just a quarter ago. Margins expanded sharply too, with gross margin at 78.4% and free cash flow at $2.955 billion.

But the bigger shift is structural. SanDisk locked in $42 billion in multi year supply agreements with over $11 billion in guarantees. That covers more than a third of fiscal 2027 output. It is starting to look less like a cyclical chip business and more like a predictable cash machine.

And Then Guidance Blew It Open

Management did not slow things down. Q4 guidance came in at $7.75 billion to $8.25 billion in revenue and $30 to $33 EPS.

Think about that trajectory.
Guided Q3 at $12 to $14.
Delivered $23.41.
Now guiding $30 to $33.

Each quarter is not just beating expectations, it is resetting them. On top of that, there is a $6 billion buyback backed by a now net cash balance sheet.

See also, What GameStop’s $55B Bid For eBay Means For Investors.

The Perfect Setup: Spinoff And AI Boom

This did not happen overnight. The company spun off from Western Digital Corporation in February 2025, becoming a pure play NAND business at exactly the right time.

Then AI demand took off.

Hyperscalers like Microsoft, Amazon, and Google started pouring money into AI infrastructure, and all of it needs high performance storage. Demand for enterprise SSDs surged more than 60%, while supply only grew about 15 to 17%. That gap pushed prices and margins sharply higher. See how Sandisk financials compare to Micron, Seagate, Western Digital, NetApp, and Everpure.

So What Now?

The setup still looks strong. There is $42 billion in contracted revenue, AI demand is not slowing, and next quarter estimates sit around $7.93 billion revenue and about $31.72 EPS.

But at $1,400, the stock already reflects a lot of that optimism. Memory cycles can turn quickly, and if AI spending cools or supply catches up, things could normalize just as fast.

Still, going from $40 to $1,400 in about a year, with nearly $3 billion in quarterly free cash flow and $30 plus EPS guidance, is not luck. It is what happens when a company hits the right market at exactly the right time.

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