SanDisk Q2 Net Profit Surges 672%

SanDisk reported a strong performance in its second fiscal quarter ending January 2, 2026, with revenue, net income, and future guidance all surpassing market expectations. The company's revenue reached $3.025 billion, up 31% from the previous quarter and well above analysts’ estimate of $2.62 billion. On a GAAP basis, net income soared to $803 million, a year-over-year increase of 672% and a quarter-over-quarter jump of 617%, translating to earnings per share of $5.15, up 615% from last year. On a non-GAAP basis, net income hit $967 million, up 443% year-over-year, with adjusted earnings per share of $6.20, far exceeding market expectations of $3.78.

All business segments showed quarter-over-quarter growth. Data center revenue reached $440 million, up 64%, while edge computing sales rose to $1.678 billion, up 21%. Consumer business contributed $907 million, marking a 39% increase. To capitalize on AI-driven storage demand, SanDisk prioritized strategic resource allocation to ensure predictable demand and returns, focusing on long-term agreements with key customers.

Looking ahead, SanDisk forecasts third-quarter revenue between $4.4 billion and $4.8 billion, with adjusted earnings per share of $12 to $14, representing over 109% growth from the second quarter. CFO Luis confirmed that NAND market supply is expected to tighten further, supporting a non-GAAP gross margin of 65% to 67%, up significantly from the previous quarter.

SanDisk also extended its joint venture agreement with Kioxia in Japan through December 31, 2034, originally set to expire in 2029. Under the agreement, SanDisk will make staggered payments totaling nearly $1.17 billion from 2026 to 2029 for manufacturing and supply services, a move Goeckeler says will strengthen both companies' positions in the NAND market.

Despite ongoing strong demand, SanDisk continues a disciplined approach to capital expenditure, investing billions over the past year to support a 10–15% bit growth during the transition to BiCS8 technology, while keeping this year's spending plan largely unchanged.

Since completing its spin-off from Western Digital in February 2025, SanDisk has operated independently, fully managing Western Digital's SSD and NAND operations. Fueled by AI-driven demand, its stock has surged 1,438% over the past year.