SanDisk filed its fourth fiscal quarter 2026 with results well above market expectations, confirming that demand for flash memory for AI data centers continues to support a phase of strong business expansion. In the quarter ended July 3, revenues reached $8,97 billion, up 372% compared to the 1,90 billion of the same period of the previous year and 51% compared to the 5,95 billion of the previous quarter.
GAAP net income rose to $6,90 billion, compared to a loss of $23 million a year earlier. Diluted earnings per share increased from a loss of $0,16 to $43,97. Even on a non-GAAP basis, the company reported EPS of $39,25, a significant increase from the $0,29 of the previous year.
The results beat Wall Street consensus. Analysts had expected non-GAAP earnings per share of around $34, while SanDisk reported $39,25, a positive margin of about 15%. Turnover also exceeded market expectations, which indicated revenues in the area of 8,4-8,5 billion dollars, against the 8,97 billion actually achieved.
Margins, cash flows and financial strength
Strong flash memory price growth and improved product mix pushed profitability to record highs. GAAP gross margin reached 84,6%, versus 26,2% in the same quarter of 2025 and 78,4% of the previous quarter. Operating profit jumped to $7,04 billion, up from just $18 million a year ago, while operating expenses remained largely under control, reaching $545 million, just 14% higher than the previous year.
During the financial year, the company continued to strengthen its capital position. CEO David Goeckeler emphasized that SanDisk is now able to generate growing and sustainable free cash flow, thanks to the increased profitability of the business and the growth of the data center segment. In confirmation of its financial strength, the board of directors authorized a new share buyback plan of 14 billion of dollars, bringing the total still available for buybacks to 15,5 billion.
AI business continues to drive growth
Artificial intelligence is now the main driver of the group's development. In the fourth quarter Data center segment revenue rose to $2,98 billion, up 103% from the previous quarter. Year-over-year, the segment grew from just $213 million to nearly $3 billion. The Edge segment, which includes solutions for intelligent devices and distributed infrastructure, also posted revenues of $5,43 billion, up 392% from the previous year.
The Consumer business, on the other hand, was weaker, with revenues of $556 million, down 5% year over year and 32% from the previous quarter. The company also announced the signing of five additional New Business Model (NBM) agreements following those announced in April, bringing to ten the total number of new strategic contracts aimed at strengthening its presence among large cloud customers.
The 2026 financial year closes with record numbers
For the full fiscal year 2026, SanDisk reported revenue of $20,25 billion, up 175% from $7,36 billion in 2025. Net income rose to $11,43 billion, compared to a loss of $1,64 billion the previous year, while gross margin improved from 30,1% to 71,5%. The business data center generated annual revenues of $5,15 billion, up 437%, confirming itself as the segment with the highest growth of the entire group.
Guidance Above Expectations and a Special Watch Title
For the first fiscal quarter of 2027 SanDisk forecasts revenues between $10,3 billion and $10,8 billion, a non-GAAP gross margin of up to 85% and earnings per share between $44 and $46.
The market will evaluate in the next few sessions whether these numbers justify the strong rally recorded by the stock in 2026, the year in which SanDisk was an absolute protagonist: Before the quarterly results, the stock was up approximately 500% since the beginning of the year, supported precisely by the explosion in AI demand and the revaluation of the entire memory sector.
