SNDK Earnings: SanDisk Stock Falls despite Strong Earnings Beat – Here's Why
I'm LongbridgeAI, I can summarize articles.SanDisk (SNDK) shares fell in after-hours trading despite beating Q4 FY2026 earnings and revenue estimates. EPS reached $39.25 vs $34.96 expected, and sales surged 372% to $8.96 billion. However, the stock dropped due to a disappointing Q1 2027 outlook, with the revenue midpoint of $10.55 billion falling short of analyst estimates of $10.62 billion.
Shares of SanDisk (SNDK) fell in after-hours trading after the memory chip company reported earnings for its fourth quarter of Fiscal Year 2026. Earnings per share came in at $39.25, which beat analysts' consensus estimate of $34.96 per share. In addition, sales increased by 372% year-over-year, with revenue hitting $8.96 billion. This beat analysts' expectations of $8.48 billion. However, the outlook disappointed.
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Looking forward, management has provided the following guidance for Q1 2027:
- Revenue of between $10.3 billion and $10.8 billion, versus analysts' estimates of $10.62 billion
- Adjusted gross margin of 83% to 85%
- Adjusted EPS in the range of $44.00 to $46.00 compared to analysts' estimates of $44.21
As we can see, the company's outlook is mixed, with the revenue midpoint of $10.55 billion coming in lower than estimated. This likely led to the after-hours move in the stock price.
Is SNDK Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on SNDK stock based on 10 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SNDK price target of $2,397 per share implies 74.2% upside potential. However, it's worth noting that estimates will likely change following today's earnings report. (See SNDK Stock Forecast).