Sandisk Corporation (SNDK) shares fell 5.40% to $1,350.50 in regular trading before dropping an additional 3.30% after hours to $1,306.00. The decline followed a sharp late-session sell-off, even as the company reported record fourth-quarter revenue, robust profit growth, and an expanded share repurchase authorization. The sell-off came amid a broader semiconductor sector pullback and suggested that Wall Street expectations heading into the print were elevated following Sandisk's strong run since its February 2025 spin-off from Western Digital.

Record Fourth-Quarter Performance

Sandisk reported fiscal fourth-quarter revenue of $8.97 billion, representing a 51% increase from the prior quarter and a 372% jump from $1.90 billion in the same period a year earlier. Management attributed roughly one-third of the sequential growth to higher volumes and two-thirds to improved pricing. The pricing strength reflects tight NAND flash supply conditions that have persisted across the memory industry as demand from AI infrastructure deployments outpaces available capacity.

GAAP net income reached $6.90 billion, up from $3.62 billion in the third quarter. Diluted GAAP earnings climbed 91% sequentially to $43.97 per share, while non-GAAP diluted earnings rose 68% to $39.25 per share.

Gross margin expanded to 84.6%, a gain of 6.2 percentage points from the previous quarter. Operating income increased 71% sequentially to $7.04 billion, and operating expenses declined 1%. The results reflected strong pricing power and a favorable product mix weighted toward higher-value storage offerings. Margins at this level underscore how far Sandisk's portfolio has shifted toward enterprise-grade and high-bandwidth storage products since operating within Western Digital's broader disk-drive-centric business.

Datacenter and Edge Segments Drive Growth

Datacenter revenue doubled sequentially to $2.98 billion, a sharp increase from $213 million in the year-ago quarter. Edge revenue rose 48% sequentially to $5.43 billion, cementing its position as Sandisk's largest end market. Consumer revenue, however, fell 32% sequentially to $556 million and declined 5% year over year, highlighting a deliberate strategic reallocation of有限的 capacity toward higher-margin enterprise customers.

For the full fiscal year 2026, Sandisk generated $20.25 billion in revenue, up 175% from the prior year. GAAP net income reached $11.43 billion, reversing the previous year's $1.64 billion loss. Diluted GAAP earnings improved to $73.76 per share, compared with an $11.32 per share loss a year earlier.

On a full-year basis, datacenter revenue grew 437% to $5.15 billion, Edge revenue increased 195% to $12.16 billion, and consumer revenue rose 29% to $2.94 billion. Sandisk attributed the annual performance to stronger pricing and a strategic shift toward higher-value customers. The datacenter trajectory aligns with broader industry reports from memory peers and hyperscale operators indicating multi-year demand cycles tied to AI model training and inference infrastructure.

Buyback Expansion and Forward Guidance

Sandisk added five New Business Model agreements during the quarter, following five similar deals announced during its April earnings call. Three of the new agreements involved new customers, while two expanded existing arrangements. The company said it expects these contracts to deepen partnerships and enhance longer-term revenue visibility.

The board approved an additional $14 billion in share repurchase authorization, bringing Sandisk's remaining buyback capacity to $15.5 billion. The expanded program provides management with greater flexibility to return capital to shareholders while maintaining investment capacity.

For the fiscal first quarter of 2027, Sandisk guided revenue to a range of $10.30 billion to $10.80 billion, with non-GAAP diluted earnings projected between $44.00 and $46.00 per share. The midpoint of that revenue range implies roughly 17% sequential growth from the fourth quarter, suggesting management expects the pricing and demand environment to continue at least through the near term.

Sandisk became an independent company on February 21, 2025, following its separation from Western Digital, which affects year-over-year period comparisons.