SNDK · Sandisk Corporation

Sandisk Corporation delivered transformative fiscal Q3 2026 results, with revenue surging 97% sequentially to $5.95 billion, propelled by a 233% increase in Datacenter revenue to $1.467 billion and 118% growth in Edge to $3.663 billion, reflecting a strategic mix shift toward higher-value customers and improved pricing. Gross margin expanded dramatically to 78.4%, up 27.5 percentage points quarter-over-quarter, while operating income rose 286% to $4.111 billion, underscoring operational leverage amid reduced operating expenses relative to revenue scale. CEO David Goeckeler highlighted this as a 'fundamental inflection point,' driven by technology leadership and a new business model featuring multi-year customer engagements with firm commitments, including three signed NBM agreements in Q3 and two more in Q4. The company ended the quarter with a pristine balance sheet: zero debt, cash and equivalents at $3.735 billion (up from $1.481 billion prior year), and shareholders' equity at $13.777 billion. Complementing this strength, the Board authorized a $6 billion share repurchase program, to be funded by operating cash flows through open market or Rule 10b5-1 purchases, signaling confidence in valuation and commitment to shareholder returns without obligating specific repurchases. Q4 guidance points to continued momentum with revenue of $7.75-$8.25 billion and Non-GAAP diluted EPS of $30.00-$33.00, alongside gross margins of 79.0%-81.0% Non-GAAP, positioning Sandisk for sustained earnings power post its February 2025 separation from Western Digital.