SanDisk's next earnings report carries a high bar

SanDisk has quickly become one of the market's more closely watched artificial intelligence-adjacent stock stories, even though the company sits in a different part of the chip market than the GPU makers that usually dominate the AI conversation.

The memory company reports fiscal third-quarter earnings on Thursday, April 30, and the setup is very different from a routine quarterly update. SanDisk already gave investors a powerful preview of what it expects, and now Wall Street is looking for signs that the company's recent surge has more room to run. Sandisk said it will hold its fiscal third-quarter earnings call at 1:30 p.m. Pacific Time on April 30.

SanDisk earnings arrive after a major reset

For its fiscal second quarter, SanDisk reportedrevenue of $3.03 billion, up 31% from the prior quarter and 61% from the year-earlier period. GAAP net income came in at $803 million, or $5.15 per diluted share, while non-GAAP diluted net income per share was $6.20.

That would have been enough to draw attention on its own, but the company's guidance made the report even harder for investors to ignore. SanDisk forecasted fiscal third-quarter revenue of $4.4 billion to $4.8 billion, and non-GAAP diluted EPS of $12 to $14.

It also guided for a non-GAAP gross margin of 65% to 67%, well above the 51.1% non-GAAP gross margin it reported in the second quarter. The next test is whether SanDisk can show that the NAND recovery has become strong enough to support a much higher level of earnings power.

AI demand is changing the storage story

SanDisk is best known by many consumers for memory cards, flash drives, and SSDs, but the company's latest results showed how quickly the data center side of the business is becoming more important.

Datacenter revenue rose 64% sequentially in the second quarter, helped by adoption among AI infrastructure builders, semi-custom customers, and technology companies deploying AI at scale, according to the company. SanDisk's end-market table showed datacenter revenue of $440 million, up from $269 million in the prior quarter and $250 million in the year-earlier period.

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That matters because AI demand is spreading beyond the most obvious semiconductor names. The buildout of AI infrastructure requires compute, networking, power, and storage, and SanDisk's latest results suggest flash memory is becoming a bigger part of that spending cycle.

Chief Executive David Goeckeler said the quarter reflected a better product mix, faster enterprise SSD deployments, and stronger market demand at a time when the role of SanDisk's products in AI and technology is being recognized.

Pricing power may matter more than revenue

In its latest quarterly 10-Q filingwith the Securities and Exchange Commission, SanDisk said net revenue increased 61% in the three months ended Jan. 2, 2026, primarily because average selling prices per gigabyte rose 36% and exabytes sold rose 22%.

That combination is powerful for a memory company because higher pricing can move quickly through the income statement when demand is strong, and supply stays tight.

SanDisk said gross profit increased by $935 million in the quarter from the comparable period in the prior year, while gross margin increased by 19%, primarily because of higher ASPs and increased exabytes sold.

The company also said the higher ASP was driven primarily by favorable industry pricing conditions and that the ASP increase outpaced cost-per-gigabyte movements. That is exactly the kind of margin setup investors want to see in a memory upcycle.

Wall Street is watching durability

The challenge for SanDisk is that memory markets have always been cyclical, and investors know pricing strength can change quickly when supply catches up with demand.

That is why the April 30 report may depend more on management's commentary than on the headline results alone. Wall Street will want to know whether enterprise SSD demand remains strong, whether AI infrastructure customers are giving SanDisk better visibility, and whether pricing strength can continue into future quarters.

Morgan Stanley recently raised its price target on SanDisk to $1,100 from $690 while keeping an overweight rating, according to TheStreet. The firm's analyst, Joseph Moore, lifted his earnings expectations well above consensus and framed the debate around the durability of NAND strength.

SanDisk also remains a relatively new standalone public company. Western Digital completed the spin-off on Feb. 21, 2025, and SanDisk began trading independently on Nasdaq under the ticker SNDK on Feb. 24, 2025.

Related: Bank of America resets Sandisk stock price for the rest of 2026

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This story was originally published April 28, 2026 at 8:37 PM.