SanDisk Corporation reported fiscal third‑quarter 2026 revenue of $5.95 billion, a 97% sequential increase from $3.025 billion in Q2 2026 and a 247% year‑over‑year jump from $1.70 billion in Q3 2025. GAAP net income reached $3.615 billion, translating to diluted earnings per share of $23.03, a dramatic rise from the $5.15 GAAP EPS reported in the prior quarter and a $9.11 beat over the consensus estimate of $13.92. The company’s non‑GAAP diluted EPS for the quarter was $23.41, up from $6.20 in Q2 2026 and well above the $13.92 consensus.
The data‑center segment drove the majority of the revenue surge, with revenue of $1.47 billion, up 233% quarter‑over‑quarter. This growth reflects the continued shift toward high‑margin enterprise customers and the AI‑driven demand for storage solutions. The consumer division did not experience a 10% decline; instead, its performance was consistent with the broader market trend, and the company’s focus remains on enterprise and data‑center markets.
SanDisk’s margin profile expanded sharply. Non‑GAAP gross margin for Q3 2026 was 78.4%, up from 51.1% in Q2 2026, driven by pricing power and a favorable product‑mix shift toward higher‑margin data‑center and cloud solutions. Operating income rose in line with revenue growth, underscoring the company’s operational leverage in a tight NAND supply environment.
Management reiterated strong confidence in the next quarter, guiding for Q4 2026 revenue of $7.75 billion to $8.25 billion, non‑GAAP gross margin of 79% to 81%, and non‑GAAP diluted EPS of $30.00 to $33.00. The guidance range is a significant lift from the prior Q3 2026 revenue guidance of $4.40 billion to $4.80 billion, reflecting sustained demand and pricing strength.
"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 CEO David Goeckeler. "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."
The market reacted positively to the earnings beat, margin expansion, and robust guidance. Analysts highlighted the company’s ability to capture the AI‑driven storage boom, its pricing power, and the strategic shift toward high‑margin enterprise customers as key drivers of the favorable reaction.
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