Sandisk shares slide as cautious guidance overshadows strong AI-driven growth

Sandisk shares slide as cautious guidance overshadows strong AI-driven growth

Thu, August 6, 2026 at 1:09 PM GMT+3 2 min read

• SNDK -3.68%

Sandisk (NASDAQ:SNDK) shares fell in premarket trading on Thursday after the flash memory manufacturer issued first-quarter guidance that failed to meet investors' elevated expectations, despite another quarter of exceptional growth fuelled by artificial intelligence demand.

The company forecast fiscal first-quarter 2027 revenue of between $10.3 billion and $10.8 billion, broadly in line with market forecasts but below the consensus estimate of $10.62 billion. Adjusted earnings per share are expected to range from $44.00 to $46.00, compared with analysts' expectations of $44.21.

Although Sandisk continued to deliver rapid growth and expanded its share repurchase programme, investors reacted negatively to guidance that did not significantly outperform already ambitious forecasts. Shares dropped more than 9% before the opening bell, although the stock remains up more than 390% so far this year.

AI demand drives another record quarter

For the fourth quarter of fiscal 2026, Sandisk reported revenue of $8.97 billion, representing sequential growth of 51% and a 372% increase compared with the same period a year earlier. The company said roughly one-third of the growth came from higher shipment volumes, while stronger pricing accounted for the remaining two-thirds.

GAAP net income surged to $6.90 billion, or $43.97 per diluted share, compared with a loss of $23 million, or $0.16 per share, in the prior-year quarter.

For the full fiscal year, revenue climbed 175% to $20.25 billion as the business benefited from a greater focus on higher-value customers and stronger pricing. Data centre revenue increased 437% year over year, reflecting robust demand for AI infrastructure and enterprise storage solutions.

Buyback expansion highlights confidence

Within its business divisions, fourth-quarter data centre revenue more than doubled from the previous quarter to $2.98 billion, while edge revenue rose 48% to $5.43 billion. Consumer revenue, however, declined 32% sequentially to $556 million.

The board also approved an additional $14 billion share repurchase authorisation, lifting Sandisk's remaining buyback capacity to $15.5 billion.

Management said it had signed five additional New Business Model agreements since reporting results in April, bringing the total number of newly announced agreements over that period to ten.

Commenting on the results, analysts at Vital Knowledge said, "Numbers on an absolute basis are spectacular, but the shortfall on guidance is negative."

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