TLDR
- Revenue surged 61% as SSD demand strengthened across all major markets.
- GAAP net income jumped 672% on higher volumes and stronger margins.
- Datacenter sales climbed 76% as AI infrastructure boosted SSD adoption.
- Gross margin hit 50.9%, reflecting sharp operational and product mix gains.
- Q3 outlook guides sharply higher revenue and EPS, beating expectations.
Sandisk (SNDK) shares posted a strong second quarter as revenue and profit surged on rising SSD demand, and the stock advanced 2.21% to close at $539.30. The company delivered sharp gains across all segments, and momentum strengthened as markets expanded. Moreover, guidance pointed to even stronger results in the next quarter.
Revenue Strength Accelerates as Product Mix Improves
Sandisk reported revenue of $3.03 billion for the second quarter, and the figure rose 61% from last year. The company benefited from better product mix across markets, and enterprise SSD growth supported the sharp jump. The firm expanded supply alignment efforts that improved margins.
Gross margin reached 50.9% on a GAAP basis, and the result marked an 18.6-point rise year over year. The company delivered stronger profitability as demand expanded across storage platforms, and higher volumes lifted unit economics. Non-GAAP gross margin reached 51.1% and reflected ongoing operational gains.
Total operating income increased sharply to $1.07 billion, and non-GAAP results reached $1.13 billion. Stronger demand supported this shift, and rising enterprise deployments added meaningful leverage. Additionally, Sandisk reduced operating costs sequentially and strengthened cash generation.
Earnings Surge as Profits Expand Across Key Markets
Net income reached $803 million on a GAAP basis, and the figure grew 672% from last year. The company posted adjusted net income of $967 million, and non-GAAP earnings per share reached $6.20. Moreover, diluted GAAP earnings per share rose to $5.15.
Datacenter revenue increased to $440 million, and the figure rose 64% sequentially and 76% year over year. The company gained momentum as AI infrastructure spending expanded, and new deployments accelerated SSD adoption. Edge revenue increased 21% sequentially, and Consumer revenue rose 39%.
Total revenue reached $3.03 billion and reflected broad-based strength, and all segments reported meaningful gains. Sandisk advanced its strategic reset to align supply with stable long-term demand, and results reflected these actions. The company reinforced its position across global storage markets.
Outlook Signals Even Faster Growth in the Third Quarter
Sandisk projected revenue between $4.4 billion and $4.8 billion for the third quarter, and the midpoint indicated strong acceleration. The company forecast non-GAAP earnings per share between $12.00 and $14.00. Moreover, guidance exceeded market expectations by a wide margin.
Projected gross margin ranged between 65% and 67%, and the company expected higher volumes to support this level. Sandisk also anticipated lower operating expenses on a non-GAAP basis, and efficiency efforts continued to advance. Additionally, demand trends in enterprise SSDs and Edge platforms remained strong.
Sandisk completed its separation from Western Digital in 2025, and the company now reports independent results. This structure allowed greater operational focus, and recent figures highlighted the benefits. As markets expand, Sandisk expects stable demand to support continued growth
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