Sandisk Reports Strong Earnings, Outperforms Expectations

Sandisk released its fiscal 2027 first-quarter results on October 29, showing strong financial performance. The stock fell over 13% the following day amid broader tech market declines, but the earnings report suggests the drop may be overreacted to.

The company reported revenue of $11.03 billion for the quarter, a 378% increase compared to the same period last year. Non-GAAP earnings per share reached $49.51, up from $1.22 in the year-ago period. These figures exceeded Wall Street's expectations.

Sandisk's guidance for the current quarter indicates continued strong growth. The company expects revenue of $12.4 billion at the midpoint of its guidance range and non-GAAP earnings per share of $56.00. Analysts had anticipated $54.69 in earnings on revenue of $12.29 billion.

In the second quarter of fiscal 2026, Sandisk generated $3 billion in revenue and $6.20 in non-GAAP earnings per share. This represents a 61% revenue increase compared to the same quarter the previous year and a 5x earnings jump year-over-year.

Analysts project Sandisk's earnings per share to rise by 220% in fiscal 2027 to $226.85. However, the company's recent performance and guidance suggest it may exceed these expectations, potentially leading to significant stock gains.

Sandisk's current stock price of $1,123.50 trades at 9 times earnings, significantly below the S&P 500's 23 times earnings multiple. With the S&P 500's average earnings anticipated to increase by 33% this year, Sandisk's valuation appears undervalued.