SanDisk Earnings Exceed Forecasts

SanDisk Corporation (SNDK) reported earnings on Jan. 29, 2026, that surpassed forecasts and raised its Q3 guidance sharply, citing strong demand from data centers and tightening NAND supply that management said will reshape storage markets.

Quarter Results and Guidance

SanDisk said in a Jan. 29 press release that fiscal second-quarter revenue reached $3.0 billion, up 31% sequentially and 61% year over year. Adjusted (non-GAAP) diluted EPS was $6.20, well above the $3.62 consensus, while GAAP net income was $803 million, with net profit rising 617% sequentially and 672% annually. CEO David Goeckeler said, "This quarter's performance underscores our agility in capitalizing on better product mix, accelerating enterprise SSD deployments, and strengthening market demand dynamics."

Data center revenue totaled $440 million, up 64% sequentially and 76% year over year, despite bit shipments growing only in the low single digits. The average selling price per gigabyte rose in the mid-30% range. Edge revenue reached $1.7 billion, increasing about half year over year, while consumer revenue was $907 million, reflecting a product mix weighted toward enterprise solid-state drives (SSDs).

For the current quarter, SanDisk issued guidance calling for revenue between $4.4 billion and $4.8 billion and adjusted EPS of $12.00 to $14.00. This outlook far exceeds analyst models centered near $2.9 billion in revenue and $4.21 in EPS. Management attributed the guidance to continued data center demand and improved product mix.

Supply Agreements and Capacity Expansion

SanDisk has signed and closed one long-term agreement (LTA) that included a prepayment component, with several additional LTAs reportedly in the pipeline. The company extended its Yokkaichi Plant joint venture with Kioxia through Dec. 31, 2034, committing $1.2 billion for manufacturing services and guaranteed supply, with payments scheduled from 2026 through 2029. Both the Yokkaichi and Kitakami fabs are operating at full capacity, and Kitakami is expanding with a new K2 fab.

Management warned that new production capacity from SanDisk and Micron is not expected until 2027–2028, leaving high-end NAND supply for AI servers tight and shortages likely to intensify in the second half of 2026. The company revised data center exabyte demand growth upward from the mid-20% range to the high-60% range and expects data centers to surpass smartphones as the largest source of NAND demand in 2026. Customers are prioritizing supply over price and planning storage needs into 2026–2028 and even 2029–2030.

On product development, SanDisk targets first samples of High-Bandwidth Flash (HBF) in the second half of 2026 and expects the first AI-inference devices using HBF early in 2027. The company is collaborating with SK hynix on memory and controller design for these products.