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SanDisk Corp (SNDK)
NASDAQ:SNDK
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SanDisk Corp
(NASDAQ:SNDK)
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Rating:56Neutral
Price Target:
$609.00
▼(-4.15% Downside)
Action:ReiteratedDate:02/03/26
The score is held back mainly by weak underlying profitability/cash flow in the financial statements and an unattractive earnings-based valuation (negative P/E). These are partly offset by strong earnings-call guidance and momentum signals in the chart, though overbought indicators add near-term technical risk.
Positive Factors
Revenue Growth & Data Center Adoption
Sustained double-digit/rapid revenue growth and accelerating data-center sales indicate structural demand for flash storage. Qualified PCIe Gen5 products and hyperscaler wins increase durable addressable market and multi-quarter revenue visibility via product qualifications and LT customer engagements.
Material Margin Expansion
Sharp gross- and operating-margin improvements reflect higher ASPs, mix shift to premium and data-center products, and operational leverage. If product mix and pricing power persist, margin expansion can be durable and drive sustained cash generation across multiple quarters.
Strengthening Balance Sheet
Transition to a net-cash position and low debt-to-equity provide financial flexibility to fund capex, JV obligations, and strategic initiatives without excessive refinancing risk. A stronger liquidity base supports durable operations through cyclical memory market swings.
Negative Factors
Negative Profitability Metrics
Despite top-line strength, negative net income and poor ROE signal the company historically fails to convert revenue into shareholder returns. Persistent unprofitable periods can erode capital, limit reinvestment, and require prolonged operational fixes to restore durable profitability.
Weak Operating Cash Conversion
Very low cash conversion and negative free cash flow constrain the firm's ability to self-fund capital intensity and JV commitments. Even with recent improvements, structurally weak cash generation increases reliance on external financing or equity and raises execution risk over the medium term.
Large JV Cash & Capacity Commitments
A material multi-year cash/COGS obligation to JV partner plus industry multi-year capacity lead times reduces flexibility. Need for multiyear customer prepayments to justify capex raises dependency on contract timing and execution, increasing structural cash-flow and deployment risks.
SanDisk Corp (SNDK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$93.78B
Dividend YieldN/A
Average Volume (3M)20.51M
Price to Earnings (P/E)―
Beta (1Y)2.39
Revenue Growth10.94%
EPS Growth-3155.05%
CountryUS
Employees12,000
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)6.20
Shares Outstanding147,600,970
10 Day Avg. Volume19,038,424
30 Day Avg. Volume20,509,894
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)0.74
Price to Sales (P/S)0.93
P/FCF Ratio-56.97
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue10.15
Enterprise Value/Gross Profit29.16
Enterprise Value/Ebitda-153.87
Forecast
1Y Price Target
$637.33Price Target Upside0.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)38.43
Revenue Forecast (FY)$15.21B
SanDisk Corp Business Overview & Revenue Model
Company DescriptionSanDisk Corp. engages in the development, manufacture, and provision of storage devices and solutions on NAND flash technology. Its products include solid state drives. embedded products, removable cards, universal series bus, and wafers and components. The company was founded on June 1, 1988 and is headquartered in Milipitas, CA.
How the Company Makes MoneySanDisk generates revenue primarily through the sale of its flash memory products, including SSDs, memory cards, and USB drives. The company operates on a business-to-business (B2B) and business-to-consumer (B2C) model, selling directly to consumers through retail channels and to businesses through partnerships with OEMs (original equipment manufacturers) and system integrators. Key revenue streams include consumer products, enterprise storage solutions, and licensing of its technology. Additionally, SanDisk benefits from strategic partnerships with major technology firms, enhancing its distribution network and increasing market penetration. The demand for high-capacity and high-speed storage solutions in emerging technologies such as cloud computing, IoT (Internet of Things), and mobile devices further contributes to its earnings.
SanDisk Corp Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: sizable revenue and EPS beats, dramatic margin expansion, robust cash generation, accelerating data center adoption, product qualifications and JV extension. The company also highlighted persistent supply shortages, the need to prioritize customers and secure multiyear commercial commitments, and material near-term cash/COGS obligations tied to the JV. While capacity expansion is constrained by long lead times and management requires durable customer commitments before increasing capital intensity, the balance of outcomes is positive given the magnitude of revenue, margin, and cash-flow improvements and confident guidance for the next quarter.Q2-2026 Updates
Positive Updates
Strong Revenue Beat and Growth
Recorded Q2 revenue of $3.025 billion, up 31% sequentially and 61% year-over-year, exceeding guidance of $2.55B–$2.65B.
Material Margin Expansion
Non-GAAP gross margin expanded to 51.1% (51.9% excluding $24M startup costs) from 29.9% in prior quarter; non-GAAP operating margin rose to 37.5% from 10.6% sequentially.
Large EPS and Cash Generation Beat
Non-GAAP EPS of $6.20 versus $1.22 in the prior quarter and above guidance of $3.00–$3.40; generated $843 million in adjusted free cash flow (27.9% free cash flow margin).
Data Center Momentum
Data center revenue of $440 million, up 64% sequentially; PCIe Gen5 TLC qualified at a second hyperscaler and BICS Eight QLC ("Stargate") expected to begin shipping for revenue within several quarters.
Edge and Consumer Strength
Edge revenue $1.678 billion (up 21% sequentially) and consumer revenue $907 million (up 39% sequentially); consumer mix shifted toward premium, with new product introductions (Sandisk Extreme Fit) and brand/licensing wins (Crayola, FIFA).
Balance Sheet Improvement
Closed quarter with $1.539 billion cash and $603 million debt; paid an additional $750 million of debt during the quarter and finished with a net cash position of $936 million.
Ambitious Q3 Guidance
Guidance for Q3 revenue of $4.4B–$4.8B, non-GAAP gross margin 65%–67%, and non-GAAP EPS $12–$14 (assumes 157M diluted shares), signaling strong forward-looking confidence.
Strategic JV Extension and Customer Engagements
Extended Yokaiichi joint venture with Kyocera through 12/31/2034, aligning it with Kitakami JV; reported progress on multiyear customer engagements and one signed LTA (included prepayment component).
Negative Updates
Supply Shortage and Allocation Constraints
Demand meaningfully exceeded supply in the quarter; company unable to fulfill all customer demand and is prioritizing strategic, multiyear customers—allocation environment expected to persist beyond calendar year 2026.
Dependency on Longer-Term Customer Commitments
Management emphasized need for multiyear agreements and prepayments to justify additional capital deployment; lack of broad long-term customer commitments creates uncertainty around adding capacity despite booming demand.
Significant Near-Term Cash Commitment to JV Partner
Agreement obligates Sandisk to pay Kyocera $1.165 billion for manufacturing services between 2026 and 2029; cost will be recognized through cost of goods sold over the next nine years, representing a material future cash/COGS commitment.
One-Time and Legal Charges
Recorded $24 million in startup costs (excluded from adjusted gross margin) and noted $93 million related to certain legal matters in GAAP-to-non-GAAP reconciliation.
Capital Intensity and Lead Times
CapEx remains substantial (gross capital spending reported at $5.255 billion and 8.4% of revenue in materials) and industry greenfield capacity takes years to come online, limiting near-term supply flexibility.
Evolving Tax Profile
As prior-year losses are consumed, management expects tax rate to normalize higher (guidance implies modeling around mid-teens percent in the near term versus very low historical rates).
Company Guidance
Management guided third-quarter revenue of $4.4–$4.8 billion (vs. Q2 revenue of $3.025B), saying the market should be even more undersupplied than in Q2 and that bids are expected down mid-single digits; they forecast non‑GAAP gross margin of 65–67% (Q2 was 51.1%), non‑GAAP operating expenses of $450–$470M (Q2 OpEx was $413M), non‑GAAP interest & other expense of $25–$30M, non‑GAAP tax expense of $325–$375M, and non‑GAAP EPS of $12–$14 assuming 157 million diluted shares; they reiterated their capital plan to support mid‑to‑high‑teens average long‑term bit growth and noted no under‑utilization charges in the guide.SanDisk Corp Financial Statement Overview
Summary
Strong reported revenue growth, but profitability remains weak with negative margins and negative ROE. Cash flow is also pressured by negative free cash flow and low operating cash flow conversion, despite some improvement; balance sheet leverage is conservative.Income Statement
SanDisk Corp has experienced significant revenue growth over the past year, with a 333.92% increase. However, profitability metrics are concerning, with negative net profit and EBIT margins indicating ongoing operational challenges. The gross profit margin improved to 30.07%, but the company still faces substantial losses.45
Neutral
Balance Sheet
The company's debt-to-equity ratio remains low at 0.22, suggesting a conservative leverage position. However, the negative return on equity of -17.81% indicates that the company is not generating positive returns for shareholders. The equity ratio is stable, reflecting a solid capital structure.55
Neutral
Cash Flow
SanDisk's cash flow situation is challenging, with negative free cash flow and a low operating cash flow to net income ratio of 0.06. Although there was a significant improvement in free cash flow growth, the company is still struggling to generate positive cash flow from operations.40
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jul 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.93B | 7.36B | 6.66B | 6.09B | 9.75B | 9.75B |
| Gross Profit | 3.11B | 2.21B | 1.07B | 430.00M | 3.24B | 3.24B |
| EBITDA | -589.00M | -1.25B | -239.00M | -1.52B | 1.74B | 1.74B |
| Net Income | -1.04B | -1.64B | -672.00M | -2.14B | 1.06B | 1.06B |
Balance Sheet | ||||||
| Total Assets | 13.00B | 12.98B | 13.51B | 13.82B | 15.76B | 15.76B |
| Cash, Cash Equivalents and Short-Term Investments | 1.54B | 1.48B | 328.00M | 292.00M | 335.00M | 335.00M |
| Total Debt | 813.00M | 2.04B | 985.00M | 1.02B | 950.00M | 950.00M |
| Total Liabilities | 2.79B | 3.77B | 2.42B | 2.38B | 2.78B | 2.78B |
| Stockholders Equity | 10.21B | 9.22B | 11.08B | 11.44B | 12.98B | 12.98B |
Cash Flow | ||||||
| Free Cash Flow | 1.45B | -120.00M | -475.00M | -932.00M | 741.00M | 741.00M |
| Operating Cash Flow | 1.63B | 84.00M | -309.00M | -713.00M | 1.15B | 1.15B |
| Investing Cash Flow | 207.00M | 556.00M | 210.00M | -189.00M | -472.00M | -472.00M |
| Financing Cash Flow | -1.10B | 518.00M | 136.00M | 860.00M | -650.00M | -650.00M |
SanDisk Corp Technical Analysis
Positive
635.36
Price Trends
173.74
Positive
113.20
Positive
Market Momentum
13.02
Positive
53.49
Neutral
36.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNDK, the sentiment is Positive. The current price of 635.36 is above the 20-day moving average (MA) of 231.19, above the 50-day MA of 173.74, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 13.02 indicates Positive momentum. The RSI at 53.49 is Neutral, neither overbought nor oversold. The STOCH value of 36.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNDK.
SanDisk Corp Risk Analysis
SanDisk Corp disclosed 58 risk factors in its most recent earnings report. SanDisk Corp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SanDisk Corp Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $27.98B | 41.22 | 47.87% | 0.14% | 13.18% | -38.37% | |
72 Outperform | $23.17B | 28.21 | 16.85% | ― | 0.77% | 0.51% | |
71 Outperform | $67.53B | 33.19 | 16.27% | 1.21% | 8.94% | -39.90% | |
69 Neutral | $48.54B | 256.26 | 3.63% | ― | 20.80% | ― | |
67 Neutral | $18.23B | 34.20 | 7.78% | 0.43% | -8.96% | -30.29% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $93.78B | ― | -9.37% | ― | 10.94% | -3155.05% |
* Technology Sector Average
SNDK
SanDisk Corp
635.36
585.05
1162.89%
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65.49
29.42
81.56%
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211.98
63.52
42.78%
FTV
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-1.23%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.