SNDK · Q4 2026 Earnings

Bullish

Sandisk

Reported August 5, 2026

30-second summary

Sandisk closed FY2026 with Q4 revenue of $8.965B (+372% YoY, +51% QoQ), $715M above the $8.25B high end of the prior guide, and non-GAAP EPS of $39.25 clearing the $33.00 high end by $6.25. Non-GAAP gross margin of 84.6% printed 360bps above the 81.0% high end — a fourth consecutive massive margin beat that no longer looks like a one-off. The Q1 FY2027 guide of $10.30–10.80B (+346–368% YoY off the $2.31B Q1 FY2026 base) with gross margin holding at 83.0–84.9% and EPS of $44–46 extends the structural-reset thesis another rung; ten NBM agreements are now signed and $15.5B of buyback authorization remains, but a FY2027 revenue envelope was again withheld — six consecutive quarters without a full-year frame.

Headline numbers

EPS

Q4 FY2026

$39.25

Revenue

Q4 FY2026

$8.96B

+372.0% YoY

Gross margin

Q4 FY2026

84.6%

Free cash flow

Q4 FY2026

$7.08B

Operating margin

Q4 FY2026

78.5%

Key financials

Q4 FY2026

Metric	Q4 FY2026	Q4 FY2025	YoY	Q3 FY2026	QoQ
Revenue	$8.96B	$1.90B	+371.6%	$5.95B	+50.7%
EPS	$39.25	$0.29	+13434.5%	$23.41	+67.7%
Gross margin	84.6%	26.2%	+5840bps	78.4%	+620bps
Operating margin	78.5%	0.9%	+7760bps	69.1%	+940bps
Free cash flow	$7.08B	$0.05B	+14355.1%	$2.99B	+136.7%

Guidance

Company significantly beat Q4 FY2026 guidance across revenue, EPS, and gross margin, with Q1 FY2027 guidance implying exceptional 346-368% YoY revenue growth and continued margin expansion driven by datacenter acceleration.

Guidance is issued for both next quarter and the full year. Both may appear below.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q4 FY2026	$7.75B - $8.25B	$8.965B	+$0.715B above high end of guide	Beat
Non-GAAP EPS	Q4 FY2026	$30.00 - $33.00	$39.25	+$6.25 above high end of guide	Beat
Gross Margin	Q4 FY2026	79.0% - 81.0%	84.6%	+3.6pts above high end of guide	Beat

New guidance

Metric	Period	Guide	YoY
Revenue	Q1 FY2027	$10.30B - $10.80B	+346% to +368% YoY
Non-GAAP EPS	Q1 FY2027	$44.00 - $46.00	—
Gross Margin	Q1 FY2027	83.0% - 84.9%	—
Operating Expenses	Q1 FY2027	$520 - $540 million (Non-GAAP)	—
Diluted Shares Outstanding	Q1 FY2027	~155 million	—

Product revenue

Q4 FY2026

Segment	Q4 FY2026	Q4 FY2025	YoY
Datacenter	$2.977B	—	+103.0%
Edge	$5.432B	—	+48.0%
Consumer	$0.556B	$0.585B	-5.0%
Datacenter Revenue (FY2026)	$5.153 billion	—	—
Edge Revenue (FY2026)	$12.160 billion	—	—
Consumer Revenue (FY2026)	$2.935 billion	—	—
Datacenter YoY Growth	437%	—	—
Edge YoY Growth	195%	—	—

Management tone

Transcript not available for this quarter; tone analysis deferred to next coverage cycle. Press-release commentary frames the year as closing "with a leading technology portfolio, established datacenter as a key growth pillar, and deepened our customer partnerships" and emphasizes "growing and durable free cash flow." The 437% FY26 datacenter growth print replaces the prior "mid-70s calendar 2026" forward-growth language — the achievement now speaks for itself. The ten signed NBM agreements are the operational spine of the cyclicality-elimination claim first introduced in Q3.

Answers to last quarter's watch list

Q4 FY2026 gross margin delivery against 79–81%. Delivered 84.6%, 360bps above the high end. Four consecutive quarters of massive gross margin beats now, each above the prior guide by 30bps → 810bps → 1,140bps → 360bps. The structural-reset thesis has been validated as far as any set of prints could validate it; the Q1 FY27 guide of 83.0–84.9% signals management now expects margins to hold roughly at this level rather than expand further.

Resolved positively

Datacenter dollars crossing $2.5B and YoY growth above +500%. Datacenter printed $2.977B, above the $2.5B threshold, with +103% QoQ growth off Q3's $1.467B. YoY growth of +103% is well below the +500% bar set last quarter, but off a much larger prior-year base — FY26 datacenter of $5.153B grew +437% YoY off the FY25 base, which more accurately captures the trajectory. The absolute-dollar threshold was met; the YoY threshold was set against a base that has since scaled dramatically.

Resolved positively

FY2026 full-year guide. Full-year FY26 actuals are now disclosed on the print ($20.248B revenue, $70.88 non-GAAP EPS, 71.6% gross margin), but no FY27 forward envelope was provided — a sixth consecutive quarter without a full-year forward guide despite ten signed NBMs representing ~33% of FY27 bids. The disclosure asymmetry between contract-base visibility and forecast-envelope withholding remains deliberate.

Resolved negatively

NBM agreement count and remaining FY2027 bid conversion. Ten agreements now signed vs five entering Q4 — the count doubled and hit the ten-by-end-of-Q4 threshold. Updated share of FY2027 bids under NBMs was not disclosed on the print. The durability spine of the structural-margin story continues to strengthen.

Resolved positively

Tax expense and effective rate. Q1 FY27 tax figures were not broken out in the press-release guidance snapshot. Effective rate trajectory remains material to EPS leverage as Malaysia loss carryforwards exhaust; without transcript detail, the pace of normalization is not visible on this print.

Continue monitoring

Pace of repurchases under the newly authorized $6B program. Authorization remaining at $15.5B implies material additional Board authorization was added during Q4 on top of the original $6B — the program has been expanded and reset. Actual Q4 repurchase dollars were not broken out on the release. Diluted share-count guide stepping from ~158M (prior Q4 guide) to ~155M (Q1 FY27 guide) implies active buyback execution.

Resolved positively

What to watch into next quarter

Q1 FY2027 gross margin delivery against 83.0–84.9%. The Q1 FY27 guide is the first quarterly range in five quarters that does not embed further margin expansion. A print at or above 84.6% (the Q4 actual) reinforces that 84%+ is a durable floor; a print below 83% would be the first material crack in the four-quarter structural-reset trajectory.

FY2027 full-year revenue envelope. Ten signed NBMs and ~33% of FY27 bids under the new business model make the continued absence of an FY27 guide increasingly conspicuous. Watch whether Q1 FY27 print finally supplies a full-year frame; another omission would confirm the disclosure asymmetry as deliberate corporate policy.

Datacenter dollars crossing $3.5B in Q1 FY27. Q4's $2.977B needs another sequential leg to keep the segment trajectory intact against $10.55B mid-guide total revenue. Below $3.2B datacenter in Q1 FY27 would force a re-examination of whether Edge is masking datacenter deceleration.

NBM agreement count crossing fifteen and disclosed share of FY27 bids under NBMs. With ten signed and ~33% of FY27 bids historically flagged, the trajectory should be five-plus additional agreements per quarter and NBM bid share climbing toward 50%. Slower conversion would undercut the "cyclicality reshape" claim.

Effective tax rate normalization. With FY26 tax expense implied by GAAP-to-net-income math and Malaysia loss carryforwards continuing to exhaust, watch whether Q1 FY27 tax dollars step materially higher than the Q4 run-rate. This remains the principal hidden EPS-leverage risk.

Consumer segment stabilization. Consumer at -32% YoY in Q4 is the fourth consecutive segment print consistent with active de-prioritization. Watch whether Q1 FY27 Consumer stabilizes above $500M or continues to contract — sustained contraction with datacenter/edge acceleration confirms the allocation framework is working; a Consumer print below $400M would raise questions about whether the segment is being managed toward runoff.

Sources

Sandisk Q4 FY2026 press release (Exhibit 99.1), filed via SEC EDGAR: https://www.sec.gov/Archives/edgar/data/2023554/000162828026053346/sndkq4-26ex991xpressrelease.htm
Sandisk Q3 FY2026 press release and brief (for prior-quarter guidance baseline and watch list)
Sandisk Q1 FY2026 press release (for Q1 FY26 revenue baseline used in Q1 FY27 YoY math)

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