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SanDisk Beats Estimates but Stock Falls as Guidance and Price-Driven Growth Worry Investors

Markets sold shares after revenue and earnings topped forecasts while guidance landed at or below expectations and much of the quarter’s lift came from higher NAND prices.

Overview

  • SanDisk reported record fiscal fourth-quarter results with $8.97 billion in revenue and $39.25 in adjusted earnings per share, driven by a surge in AI data-center demand.
  • Data-center sales doubled sequentially to about $2.98 billion, but the company said roughly two thirds of the quarter-over-quarter revenue gain came from higher NAND prices rather than shipment volume.
  • Investors reacted negatively on Thursday after SanDisk’s fiscal Q1 revenue guide of $10.3 billion to $10.8 billion fell to the low end of street expectations, sending the stock down roughly 9–11 percent.
  • Management highlighted multi-year customer visibility with about $93.9 billion in minimum revenue commitments and spent $4.5 billion on buybacks this quarter while leaving roughly $15.5 billion authorized.
  • The trade shows how sensitive AI-linked chip and storage stocks are to guidance and pricing signals and points to a risk that pricing-driven gains could reverse quickly if supply or hyperscaler demand shifts.