Sandisk Stock Rockets 21% After Q2 FY26 Earnings Beat

Sandisk’s earnings days are no longer routine financial updates. They have become checkpoints for the global AI storage boom. On January 29, 2026, the memory and storage leader reported Q2 FY26 results that not only crushed Wall Street expectations but also reshaped investor confidence around NAND demand, pricing power, and long term profitability. The reaction was swift. Sandisk stock surged over 21% in pre market trading as per Google Finance as investors digested the scale of the beat and the bold forward guidance.

Let’s find out with this blog what drove Sandisk’s Q2 FY26 earnings beat, why the stock jumped sharply, what management said about AI led demand, and what investors should track next.

Sandisk Earnings Snapshot: Q2 FY26

Source: Sandisk Earnings Release

Sandisk delivered $3.03 billion in Q2 FY26 revenue, marking a massive 61% YoY jump, while adjusted earnings surged to $6.20 per share, up more than 400% from last year. Margin expansion was one of the biggest stories of the quarter, with non-GAAP gross margins climbing to around 51%, reflecting improved pricing, favorable product mix, and stronger demand for enterprise and data center SSDs. Operating cash flow and free cash flow also saw sharp increases, strengthening Sandisk’s financial flexibility.

Did Sandisk Beat Analyst Estimates?

Yes, and too by a wide margin.

Wall Street had expected earnings of roughly $3.60 to $3.80 per share and revenue near $2.65 to $2.70 billion. Sandisk reported $6.20 in adjusted EPS and $3.03 billion in revenue, beating EPS estimates by roughly $2.50 to $2.70 and topping revenue expectations by more than $300 million. For context, that represents an EPS surprise of about 70% to 80% and a revenue beat of over 10%.

This was not just a modest upside. It was a decisive signal that Sandisk is operating in a structurally stronger demand and pricing environment.

Why Did the Stock Rise Over 21%?

The SNDK stock surge of over 21% in pre-market trading as per Google Finance reflects three key factors:

1. AI Driven Demand Is Accelerating

Sandisk highlighted booming demand from AI data centers, where high performance NAND storage is becoming a critical component of next generation compute infrastructure. Data center revenue rose 64% sequentially and about 76% YoY to roughly $440 million, underscoring the momentum in enterprise and hyperscale customers.

2. Pricing Power and Margin Expansion

Tight NAND supply and rising demand have improved Sandisk’s pricing leverage. Management noted that customers are shifting from short term orders to longer term agreements, signaling confidence in sustained demand and potentially firmer pricing beyond 2026.

3. Stunning Forward Guidance

Sandisk’s outlook for Q3 FY26 was far above consensus, which amplified investor optimism. The company guided revenue to $4.4 to $4.8 billion and adjusted EPS to $12 to $14 per share. Both figures sit dramatically above Wall Street forecasts, reinforcing the idea that this earnings momentum may not be short lived.

Sandisk CEO Commentary and Strategic Signals

CEO David Goeckeler credited the quarter’s strength to a better product mix, accelerating enterprise SSD deployments, and rising market demand tied to AI workloads. He emphasized that data center NAND is not a commodity product but a strategic component of complex AI architectures, positioning Sandisk as a critical enabler of the AI buildout.

Management also indicated that demand could exceed supply well into 2026 and beyond, with discussions increasingly shifting toward multi year customer commitments.

Guidance and What Analysts Are Expecting Next from SNDK Stock

For Q3 FY26, Sandisk expects:

• Revenue: $4.4 to $4.8 billion
• Adjusted EPS: $12 to $14
• Gross margin: Mid 60% range

Analysts have already begun revising their price targets and earnings models upward, citing ongoing NAND supply tightness, strong AI related storage demand, and Sandisk’s improved margin structure. 

Some market watchers believe the company is entering a multi quarter earnings supercycle driven by AI infrastructure buildouts and enterprise SSD adoption.

What Sandisk Investors Should Watch Going Forward

• Sustainability of AI Demand: If hyperscalers and cloud providers continue scaling AI infrastructure, Sandisk’s data center revenue could remain a major growth engine.
• NAND Supply and Pricing Discipline: Tight supply has supported margins. Any shift in industry capacity or pricing competition will be critical to monitor.
• Execution on Long Term Contracts: Multi year customer agreements could stabilize revenue visibility and support premium pricing.
• Cash Flow and Capital Allocation: With rising free cash flow, investors will watch how Sandisk balances reinvestment, debt management, and shareholder returns.

Sandisk’s Q2 FY26 earnings were more than just a beat. They marked a turning point in how the market views its role in the AI driven storage economy. With explosive earnings growth, aggressive guidance, and strengthening pricing power, Sandisk has positioned itself as one of the most compelling semiconductor stories tied to the AI infrastructure cycle.

Disclaimer:

The content is meant for education and general information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. The securities quoted are exemplary and are not a recommendation. This in no way is to be construed as financial advice or a recommendation to invest in any specific stock or financial instrument. Readers are encouraged to verify the exact numbers and financial data from official sources such as company filings, earnings reports, and financial news platforms and to conduct their own research, and consult with a registered financial advisor before making any investment decisions. All disputes in relation to the content would not have access to an exchange investor redressal forum or arbitration mechanism. INDmoney Global (IFSC) Private Limited,Registered office address: Office No. 507, 5th Floor, Pragya II, Block 15-C1, Zone-1, Road No. 11, Processing Area, GIFT SEZ, GIFT City, Gandhinagar – 382355.