Sandisk (NASDAQ:SNDK) Posts Q4 Revenue of $8.97B, Up 372% YoY, Adds $14B Buyback

Sandisk Corporation (NASDAQ: SNDK) reported fiscal fourth quarter results for the period ended July 3, 2026, posting revenue of $8.97 billion, up 371.6% year-over-year, with adjusted EPS of $39.25 beating the $35.14 consensus estimate by 11.7%. The board simultaneously approved a new $14 billion share repurchase authorization, bringing total remaining buyback capacity to $15.5 billion.

Q4 2026 Financial Results

• Revenue: $8.97 billion, up 371.6% year-over-year from $1.90 billion and up 51% sequentially from $5.95 billion in Q3 2026.
• GAAP EPS: $43.97 diluted, compared to a loss of $0.16 per diluted share in Q4 2025; adjusted EPS of $39.25 beat the $35.14 consensus by 11.7%.
• GAAP gross margin: 84.6%, up 58.4 percentage points year-over-year from 26.2% in Q4 2025.
• GAAP operating income: $7.04 billion, with a GAAP operating margin of 78.5%, up 77.6 percentage points from 0.9% in the year-ago quarter.
• Datacenter revenue: $2.98 billion in Q4, up 103% sequentially from $1.47 billion; for the full fiscal year 2026, Datacenter revenue reached $5.15 billion, up 437% year-over-year.
• Edge revenue: $5.43 billion in Q4, up 48% sequentially, representing the largest segment by quarter.

What Drove the Results

Adjusted EPS of $39.25 beat the $35.14 consensus by 11.7%, and revenue of $8.97 billion exceeded estimates. Management noted in the press release that sequential revenue growth came approximately one-third from higher volumes and two-thirds from higher pricing, with gross margin expanding to 84.6% from 78.4% in Q3 2026. The Datacenter segment, which grew 437% for the full fiscal year 2026 to $5.15 billion, was cited as a key growth driver alongside a mix shift toward higher-value customers. GAAP net income reached $6.90 billion for the quarter, versus a net loss of $23 million in Q4 2025, reflecting the dramatic improvement in pricing and operating leverage.

For the full fiscal year 2026, Sandisk reported revenue of $20.25 billion, up 175% year-over-year, with GAAP net income of $11.43 billion ($73.76 diluted EPS). Operating expenses in Q4 were $545 million on a GAAP basis, up 14% year-over-year, a modest increase relative to the revenue and income growth. The company also announced five additional New Business Model agreements since its April earnings call, including three with new customers and two expansions of prior agreements.

Wall Street View

Despite the Q4 beat, the Q1 2027 revenue guidance range of $10.30 billion to $10.80 billion and non-GAAP diluted EPS guidance of $44.00 to $46.00 were characterized by market reports as in-line rather than above consensus. Shares fell -5.40% on Wednesday, August 5, 2026, while the S&P 500 declined 0.20%. The stock has risen more than five-fold in 2026 alongside a broader rally in memory and storage stocks, according to market reports, setting a high bar for incremental guidance.

Investor Takeaway

The Q4 results confirm that Sandisk's pricing and Datacenter mix-shift have translated into genuine operating leverage, with GAAP operating margin reaching 78.5% from near-zero a year ago. The $15.5 billion in total remaining buyback authorization is a material capital return signal relative to the company's financial profile. The key forward question is whether Q1 2027 guidance at the midpoint of expectations is sufficient to sustain the valuation multiple after the stock's significant appreciation in 2026.