![\"\"](\"https:\/\/s.yimg.com\/lo\/mysterio\/api\/986899ef9ff81a285fe0021f694b491c004080840f62aaba18bcf73faed27e41\/lightyear_networkapi\/resizefit_w960%3Bquality_80%3Bformat_webp\/https%3A%2F%2Fmedia.zenfs.com%2Fen%2Fbarchart_com_477%2F78fa8380472192a67bc6b432c3a15cf7.png\")
<\/a> www.barchart.com <\/p>\nEven after that run, it\u00a0traded at a 7.18 times forward price-to-earnings ratio, below the sector average of 23.21 times. <\/p>\n
The company’s\u00a0fiscal Q4 2026 results show why investors have taken notice. Revenue climbed 51% from the prior quarter and 372% from a year earlier to $8.97 billion. GAAP gross margin reached 84.6%, up 6.2 percentage points sequentially and 58.4 points year over year.\u00a0 <\/p>\n
At the same time, GAAP operating expenses fell 1% from the prior quarter to $545 million. That helped operating income rise 71% sequentially to $7.04 billion, compared with only $18 million a year earlier. <\/p>\n
GAAP net income came in at $6.90 billion, compared with a $23 million loss a year earlier. Diluted EPS rose to $43.97 from a loss of $0.16 per share, while non-GAAP EPS reached $39.25, up 68% from the prior quarter and well above $0.29 a year ago. Free cash flow totaled $7.08 billion, up from $2.99 billion in Q3 and $49 million a year earlier.\u00a0 <\/p>\n
Story Continues <\/p>\n
Adjusted free cash flow rose to $5.04 billion from $2.42 billion in the prior quarter and $77 million a year ago. For all of fiscal 2026, revenue rose 175% to $20.25 billion, net income improved to $11.43 billion from a $1.64 billion loss, and data center revenue jumped 437% to $5.15 billion. <\/p>\n
Why SanDisk Is Tightening Operations <\/p>\n
SanDisk’s recent layoffs affect about 700 people working on flash-memory chip design, error-correction software, and storage systems. The cuts reportedly caught employees by surprise, especially given SanDisk’s strong financial results. <\/p>\n
Reports suggest the company is moving NVMe SSD development for cloud and AI servers to its India center, while the Israel team takes on work related to a new higher-capacity “Stargate” platform. No layoffs were reported outside Israel. The timing also upset some workers because the cuts came months before a planned employee stock-purchase plan with discounted shares. Still, the reported job reductions appear tied to a shift in projects rather than the stock-purchase plan itself. <\/p>\n
This approach fits SanDisk’s long-term financial targets. At its\u00a0August Investor Day, SanDisk said it is targeting mid-to-high-teens revenue growth, adjusted gross margin of about 80%, adjusted operating margin of about 75%, and operating expenses equal to roughly 5% of revenue. <\/p>\n
SanDisk is also continuing to invest in new products. Its\u00a0partnership with SK hynix (SKHY) has led to the first Open Compute Project specification for High Bandwidth Flash. This is a NAND-based memory layer designed for AI inference systems. SanDisk expects to begin HBF sampling in the second half of 2026, followed by early AI-inference device samples in 2027. <\/p>\n
Wall Street Weighs the Outlook <\/p>\n
SanDisk’s next big test comes with its fiscal Q1 2027 earnings report, which is\u00a0expected on Nov. 5. Analysts expect the company to earn $45.22 per share for the current quarter, up from $0.90 a year earlier. That works out to projected growth of 4,924.44%. For the full fiscal year, Wall Street expects EPS of $208.92, up 201.08% from $69.39 in fiscal 2026. <\/p>\n
Bank of America analyst Wamsi Mohan remains bullish. On July 1, he\u00a0repeated his “Buy” rating and raised his price target on SanDisk to $2,500 from $2,100. Mohan expects NAND supply to remain tight compared with demand through mid-2027, which could keep pricing favorable even if price increases slow from quarter to quarter. <\/p>\n
Wedbush analyst Matt Bryson is more careful. He\u00a0kept an “Outperform” rating and a $2,000 target after SanDisk’s Investor Day, but said investors still want to see management deliver on its long-term plans. He is also looking for more proof that High Bandwidth Flash will gain traction and that SanDisk can execute on its long-term customer contracts. <\/p>\n
Still, Wall Street remains positive. All 24 analysts covering SNDK\u00a0rate it a consensus “Strong Buy,” and their average $2,133.39 price target suggests 43.7% upside from recent levels. <\/p>\n
The reported Israel layoffs look more like a targeted efficiency and R&D-reallocation move than a warning that SanDisk’s underlying business is weakening. Reports indicate that NVMe SSD development for cloud and AI servers is shifting to India while the Israeli organization takes on the higher-capacity Stargate platform, consistent with a company optimizing resources while pursuing aggressive margin goals. With NAND supply tight, AI storage demand robust, and earnings estimates still rising sharply, SNDK’s longer-term setup remains constructive. Shares may stay volatile after their enormous rally, but if pricing and execution hold up, the fundamental trend still points higher. <\/p>\n On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally\u00a0published on Barchart.com<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"SanDisk Corporation (SNDK) is having an exceptional year. The flash-memory maker is the best-performing stock in the S&P…\n","protected":false},"author":2,"featured_media":269614,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[33],"tags":[10279,73735,73739,73740,73738,73737,37,73736,73741,73734],"class_list":["post-269613","post","type-post","status-publish","format-standard","has-post-thumbnail","category-israel","tag-ai","tag-eps","tag-fiscal-2026","tag-fiscal-2030","tag-fiscal-q4","tag-gaap","tag-israel","tag-nand","tag-quarter-to-quarter","tag-sandisk"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@iran\/117181934667874421","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts\/269613","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/comments?post=269613"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts\/269613\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/media\/269614"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/media?parent=269613"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/categories?post=269613"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/tags?post=269613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}