$Sandisk(SNDK.US)

SanDisk: When a Beat Isn’t Good Enough

SanDisk’s FY2026 numbers were exceptional: revenue surged 175% YoY to $20.25bn, while non-GAAP EPS reached $70.88. Q4 revenue of $8.97bn and EPS of $39.25 beat consensus, with gross margin expanding to 84.6%. Datacenter revenue more than doubled sequentially to $2.98bn, validating the AI-storage thesis. (Sandisk Corporation)

So why the ~8% after-hours slump? Expectations, not fundamentals. FY2027 Q1 revenue guidance of $10.3–10.8bn sits below Wall Street’s ~$10.82bn expectation, while 83–85% gross-margin guidance implies little further expansion. After SanDisk’s extraordinary 2026 rerating, investors are demanding increasingly aggressive beats. (Barron’s)

Technically, the setup has weakened materially: price remains below key moving averages, with momentum and MACD bearish, although oversold conditions raise rebound risk. (Raymond James)

Options-writer stance: avoid naked calls. The dislocation favours a bull put spread—selling downside premium while defining risk—or, for existing shareholders, a covered call above resistance. The key trade is exploiting elevated implied volatility without betting against fundamentally strong AI-storage demand.

Not financial advice.