SanDisk beats estimates, guides higher, then falls over 10%
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
NAND flash maker SanDisk reported $11.03 billion in quarterly revenue, up 380%, and announced an 8-for-1 stock split.
Shares fell more than 10% as analysts flagged memory pricing possibly peaking.
Background
SanDisk is a NAND flash storage company that makes solid-state drives, memory cards and USB flash drives, operating as a pure-play NAND manufacturer through a long-standing joint venture with Kioxia in Japan. Its shares had gained 460% year to date before the selloff, and it joined the S&P 100 (an index of large US companies) on Sept. 21, 2026. The stock is now pulling back even after strong results, as research firm Morningstar warns that memory price growth looks to be slowing sooner than expected.
How it unfolded
- Apr 20, 2026Wells Fargo lifted its price target on SanDisk to $975 from $675 while keeping an Equal Weight rating, saying "we've clearly missed SNDK."
- Sep 21, 2026SanDisk joined the S&P 100 in a quarterly rebalancing, replacing Honeywell Aerospace, Nike, Simon Property Group and Colgate-Palmolive.
- Oct 29, 2026SanDisk reported fiscal first-quarter revenue of $11.03 billion, up 380% and above the $10.72 billion FactSet estimate, and announced an 8-for-1 stock split effective Nov. 19.
- Oct 29, 2026The company guided fiscal Q2 revenue to $12.2 billion-$12.6 billion and adjusted earnings of $55-$57 per share, above analyst expectations.
- Oct 30, 2026SNDK fell more than 10% after the earnings report; Morningstar cut its fair value estimate to $870 from $1,000.
- Nov 2, 2026Shares fell 6.4% to about $1,077, slipping below $1,100.
Key terms
- NAND flash
- A type of flash memory named after the NAND logic gate, used for non-volatile data storage.
- stock split
- A corporate action that increases the number of shares outstanding while proportionally lowering each share's price, leaving total market value unchanged.
Source: Wikipedia
Who’s saying what
- Official
- CEO David Goeckeler said the company started fiscal 2027 with another quarter of strong performance, with robust demand driving outpaced growth in its data center business.
- Caution
- Morningstar said sky-high pricing continues to drive results but looks to be decelerating sequentially, with a peak on the horizon and a downcycle thereafter.
- Bulls
- Retail traders on Stocktwits turned "extremely bullish," citing "awesome earnings, buyback, share split," and one later argued "you cannot hold those earnings down for long."
- Bears
- A Seeking Alpha analyst who had rated SanDisk a Sell titled an Oct. 31 piece "The Selloff Is Just The Beginning."
- Analysts
- Another Seeking Alpha analyst upgraded the stock with a piece titled "Wait For A Bottom," citing triple-digit year-over-year top-line growth driven by data center demand.
Still unverified
Investors' motive for the drop has been characterized as profit-taking after a sharp rally over the past year; this has not been confirmed.