SanDisk Corporation reported fiscal second‑quarter 2026 results on January 29 2026, delivering revenue of $3.025 billion—an increase of 61% year‑over‑year from $1.876 billion in Q2 2025—and adjusted earnings per share of $6.20, a $3.08 (≈100%) beat over the consensus estimate of $3.12 per share. The company’s strong performance was driven by a sharp shift in product mix toward higher‑margin data‑center SSDs and a sustained rise in average selling prices, which together lifted operating leverage and helped the firm outpace analysts’ expectations.
The gross margin expanded to 51.1% from 29.9% in the prior quarter and 32.5% a year earlier, a 19‑percentage‑point lift that reflects both pricing power and a favorable mix of high‑margin enterprise products. SanDisk’s management attributed the margin growth to higher average selling prices and a continued focus on data‑center demand, which has been amplified by the rapid adoption of AI workloads that require large, high‑performance storage arrays.
Segment‑level data show data‑center revenue surged 64% sequentially to $1.678 billion, while the edge segment grew 21% to $1.678 billion and the consumer segment rose 39% to $907 million. The AI‑driven demand for enterprise SSDs is the primary catalyst for the data‑center jump, and the company’s expansion of multi‑year supply agreements has helped secure pricing and capacity for these high‑margin contracts.
Management guided fiscal third‑quarter revenue to $4.4 billion–$4.8 billion, a 64‑76% year‑over‑year increase, and adjusted EPS to $12–$14, more than double the consensus estimate of $5.11. The guidance signals strong confidence in sustained pricing power and the continued acceleration of AI infrastructure spending, while the wide margin target of 65‑67% underscores expectations of further mix improvement and operational efficiency.
CEO David Goeckeler highlighted that “Artificial intelligence continues to drive a step change in demand with data‑center and edge workloads expanding system complexity and storage content requirements.” CFO Luis Visoso noted that the NAND market is undergoing a structural shift toward multi‑year contracts, which should reduce cyclicality and support higher long‑term margins. The company’s transition to BiCS8 technology and full fab utilization is positioned to sustain these gains and accelerate growth in the coming years.
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