Sandisk’s earnings jolt puts recent stock swings in context

Sandisk (SNDK) just reported fourth quarter and full year results that sharply contrast with recent share price volatility. Investors now have fresh numbers to weigh against the stock’s steep moves this year.

For the quarter ended July 3, 2026, Sandisk reported sales of US$8,965 million compared with US$1,901 million a year earlier. Net income was US$6,903 million compared with a net loss of US$23 million in the prior year period.

Basic earnings per share from continuing operations came in at US$46.96, versus a basic loss per share of US$0.16 a year ago. On a diluted basis, earnings per share from continuing operations were US$43.97, compared with a diluted loss per share of US$0.16 in the prior year quarter.

Across the full fiscal year, Sandisk reported sales of US$20,248 million, versus US$7,355 million in the previous year. Net income for the year was US$11,433 million, compared with a net loss of US$1,641 million a year earlier.

Basic earnings per share from continuing operations for the full year were US$77.78, versus a basic loss per share of US$11.32 in the prior year. Diluted earnings per share from continuing operations were US$73.76, compared with a diluted loss per share of US$11.32 a year ago.

Despite the strong earnings release and new product announcements around AI focused flash memory, Sandisk’s share price has recently cooled, with a 30 day share price return of down 35.39% and a 90 day share price return of down 14.74%. Even so, the stock’s year to date share price return of 349.76% and 1 year total shareholder return of very large levels suggest long term momentum has been strong even as short term sentiment has turned more cautious.

If Sandisk’s sharp moves have you rethinking your tech exposure, it can help to look across the wider AI hardware space through a curated screener of 56 AI infrastructure stocks

Bulls point to Sandisk’s huge jump in profitability and massive AI focused product pipeline. Bears focus on the sharp pullback and very large 1 year run. Do the current valuation numbers support the optimism or the caution?

Most Popular Narrative: 30.2% Undervalued

At a last close of $1,237.92, the most followed narrative sets Sandisk’s fair value at $1,772.91, using an 8.54% discount rate and long term AI memory assumptions.

Rapid AI and cloud workload expansion is driving data center NAND exabyte growth at a pace well above overall supply. This positions Sandisk's enterprise SSD portfolio and deepening hyperscaler engagements to support sustained revenue acceleration and structurally higher pricing power, benefiting earnings.

Want to understand why this narrative supports such a premium to today’s share price? The crux is aggressive revenue expansion, sharply higher margins and a future earnings multiple usually reserved for sector leaders. Curious which specific forecasts need to hold for that valuation to stack up? The full narrative breaks down the exact growth path behind that fair value.

Result: Fair Value of $1,772.91 (UNDERVALUED)

However, there are still clear risks that could upset this Sandisk narrative, including a potential swing from tight NAND supply to oversupply and slower than expected enterprise SSD share gains.

Next Steps

With sentiment clearly mixed on Sandisk, it can pay to move quickly and review the full picture yourself, including the 4 key rewards and 2 important warning signs.

Looking for more investment ideas beyond Sandisk?

If Sandisk has sharpened your focus on opportunities in tech, do not stop here. The next smart idea could be sitting in another corner of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.