Sandisk: Fiscal 3Q26 Financial Results

Summary:

Third quarter revenue was $5.95 billion, up 97% sequentially and above the guidance range, with GAAP net income reported at $3,615 million ($23.03 diluted net income per share)
Revenue outperformance was driven by both our mix shift toward higher-value customers, with Datacenter up 233%, and higher pricing, third quarter Non-GAAP diluted net income per share was $23.41
Ended the fiscal third quarter with three signed New Business Model agreements, signed two additional NBM agreements in the fiscal fourth quarter
Expect fourth quarter revenue to be in the range of $7.75 billion to $8.25 billion, with expected Non-GAAP diluted net income per share to be in the range of $30.00 to $33.00

Sandisk Corp. reported fiscal third quarter financial results.

“This quarter marks a fundamental inflection point for Sandisk – where our technology leadership is enabling a deliberate shift in our mix toward the highest-value end markets, led by Datacenter,” said David Goeckeler, CEO, Sandisk. “We are also advancing to a new business model built on multi-year customer engagements backed by firm financial commitments. Together, this transformation is driving structurally higher and more durable earnings power,” continued Mr. Goeckeler. “With a zero-debt balance sheet, strong cash generation, and a recently authorized share repurchase program, we are positioned to deliver substantial long-term value creation for our shareholders.”

Q3 2026 Financial Highlights

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Basis of Presentation
On February 21, 2025, Sandisk Corporation completed its separation from Western Digital Corporation and became a standalone publicly traded company.

Comments

Sandisk delivered a stunning quarter, with revenue surging 97% YoY, nearly doubling in a single year. This validates what many now see as an obvious strategic call: spinning off Sandisk from WD. The company is clearly among the biggest beneficiaries of the current market dynamics, riding the convergence of supply chain reshoring, AI-driven demand, and favorable NAND pricing. The 78% non-GAAP gross margin speaks for itself, this is an exceptionally profitable business firing on all cylinders.

To put the numbers in perspective: just one year ago, Q3 FY2025 generated $1.695 billion in revenue. Q3 FY2026 came in at $5.95 billion. For the first nine months of FY2026, Sandisk has already posted $11.283 billion in revenue, up from $5.454 billion over the same period in FY2025, a 107% YoY increase. Extrapolating current momentum, FY2026 full-year revenue could approach $18–19 billion.

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Breaking down by segment, Datacenter was the standout at $1.5 billion, with Edge close behind at $3.7 billion, both growing at a remarkable pace. Consumer came in at around $0.8 billion, posting a modest 5% full-year gain but down roughly 10% QoQ, reflecting the more cyclical nature of that segment.

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Looking ahead, all eyes will be on FMS, where Sandisk is expected to make announcements around high-capacity SSDs, particularly showcasing TLC and QLC technologies, as well as potential developments on the HBM front through its partnership with SK Hynix.