Sandisk Corp. (SNDK) stocks slipped after-hours on Wednesday after the memory chipmaker's Q1 FY27 revenue guidance fell short of the higher end of analyst expectations, despite reporting blockbuster fiscal fourth-quarter results. The company posted fourth-quarter revenue of $8.97 billion, a nearly fivefold jump from $1.9 billion in the same period last year, and net income of $6.9 billion, or $43.97 per share, reversing a net loss of $23 million in the prior-year quarter. The surge was driven by unprecedented spending from cloud hyperscalers racing to build artificial intelligence infrastructure, creating intense demand for high-capacity enterprise solid-state drives (SSDs) amid a structural deficit in NAND flash memory capacity.
Sandisk Reports $8.97 Billion Q4 Revenue Amid Hyperscaler AI Demand
Sandisk reported fourth-quarter revenue of $8.97 billion, up from $1.9 billion in the same period last year, powered by spending from cloud hyperscalers like Meta (META), Amazon (AMZN), Alphabet (GOOGL), and Microsoft (MSFT) building out artificial intelligence infrastructure. Net income reached $6.9 billion, or $43.97 per share, reversing a net loss of $23 million, or 16 cents per share, in the prior-year quarter. Adjusted earnings per share came in at $39.25, beating Wall Street consensus estimates of $34.96 per share on revenue of $8.48 billion.
NAND Flash Supply Constraints Drive Pricing Power and Long-Term Agreements
Demand for high-density Enterprise Solid-State Drives (eSSDs) has far outpaced global supply as tech giants and cloud providers scale up mega-data centers to support AI tools. Industry-wide capacity constraints in NAND flash memory manufacturing have created a structural deficit, leaving hyperscalers vying for limited inventory and pushing average selling prices dramatically higher. To secure supply, major cloud customers have increasingly locked in multi-year Long-Term Agreements (LTAs) with fixed and variable pricing mechanisms to guarantee storage allocation for training clusters. Sandisk management stated during its earnings call that these long-term agreements are tailored to meet customer needs and provide demand certainty at financials consistent with the company's outlook, allowing Sandisk to capture upside as capacity remains constrained across AI data center deployments.
Sandisk Guides Q1 FY27 Revenue Between $10.3 Billion and $10.8 Billion
For the first quarter of fiscal 2027, Sandisk projected revenue to land between $10.3 billion and $10.8 billion, compared to the analyst range of $9.4 billion to $12.3 billion expected by analysts polled by Fiscal.ai. Adjusted earnings per share are forecasted to range from $44.00 to $46.00 per share, compared to Wall Street analysts' expectations of $44.2 per share polled by FactSet.
Retail Sentiment Remains Extremely Bullish Despite After-Hours Decline
Retail sentiment on Stocktwits was 'extremely bullish' with 'high' message volumes. A user expressed bullish views on memory demand and the AI thesis, noting that a 5% after-market drop was common for a high-beta stock like SNDK. SNDK stock has soared 460% year-to-date, while Roundhill Memory ETF (DRAM) has surged 99% during the same period.
FAQ
What did Sandisk report for Q4 revenue and earnings?
Sandisk reported fourth-quarter revenue of $8.97 billion, up from $1.9 billion in the same period last year, and net income of $6.9 billion, or $43.97 per share, reversing a net loss of $23 million in the prior-year quarter. Adjusted earnings per share came in at $39.25, beating consensus estimates of $34.96 per share.
What is Sandisk's Q1 FY27 revenue guidance?
Sandisk guided Q1 FY27 revenue to land between $10.3 billion and $10.8 billion, compared to the analyst range of $9.4 billion to $12.3 billion. Adjusted earnings per share are forecasted to range from $44.00 to $46.00 per share.
Why did Sandisk stocks slip after-hours despite strong Q4 results?
Sandisk stocks slipped after-hours because the company's Q1 FY27 revenue guidance of $10.3 billion to $10.8 billion fell short of the higher end of analyst expectations, which ranged from $9.4 billion to $12.3 billion.
