Key Highlights
- Shares of Sandisk advanced 2.7% Tuesday following an upgrade from Argus, moving the rating from Hold to Buy
- Fourth quarter earnings per share reached $39.25, surpassing analyst expectations of $33.28, while revenues climbed 371.6% compared to the prior year to $8.96 billion
- First quarter 2027 guidance calls for EPS between $44 and $46, with projected revenues ranging from $10.3 billion to $10.8 billion
- A new $14 billion stock repurchase authorization was approved by the board of directors
- Wall Street maintains a “Moderate Buy” consensus with a mean price target of $1,853.14
Shares of Sandisk (SNDK) climbed 2.7% during Tuesday’s trading session after receiving a rating boost from Argus, which moved its stance from Hold to Buy. The stock reached an intraday peak of $1,287.04 before closing at $1,271.05, marking an increase from the previous session’s finish of $1,237.92.
The ratings enhancement follows an impressive fourth fiscal quarter performance. The company delivered earnings of $39.25 per share, significantly exceeding the Street’s consensus forecast of $33.28. Quarterly revenues totaled $8.96 billion, representing a year-over-year increase of 371.6%.
Growth of this magnitude captures attention across the investment community. Datacenter-related revenues alone soared 437% during fiscal 2026, fueled by accelerating demand for high-capacity NAND storage solutions as artificial intelligence workloads expand.
The sequential revenue expansion wasn’t solely volume-driven. Improved pricing dynamics also contributed meaningfully, demonstrating genuine pricing strength with enterprise customers. This powerful combination is elevating both profit margins and cash generation.
For the first quarter of fiscal 2027, management projects revenues between $10.3 billion and $10.8 billion. The midpoint represents approximately 17.6% growth from the prior quarter. Non-GAAP gross margin expectations are positioned between 83% and 85%.
The company’s Q1 2027 EPS guidance spans $44 to $46. Looking at the complete fiscal year, analyst consensus anticipates Sandisk will generate $187.19 in earnings per share.
Additionally, the board greenlit a $14 billion buyback authorization, which would cover approximately 6.6% of shares currently outstanding.
Wall Street Projections Show Wide Dispersion
The Street’s outlook on SNDK remains predominantly optimistic, though price targets demonstrate considerable variation. Wedbush increased its objective to $2,000 while maintaining an outperform stance. Mizuho pushed even further, elevating its target to $2,200. Susquehanna adjusted downward from $3,250 to $3,050 while preserving a constructive view.
Across 26 covering analysts, the consensus lands at “Moderate Buy,” comprised of three Strong Buy recommendations, nineteen Buy ratings, and four Hold ratings. The mean price objective stands at $1,853.14.
Zacks Research maintains a more optimistic near-term average target of $2,287.05, with the most bullish projection reaching $3,169.
Currently, Sandisk holds a Zacks Rank of 1, designating it as a Strong Buy.
Risk Factors Remain Present
The equity carries meaningful risk considerations. SNDK exhibits a beta of 5.21, indicating substantial volatility in both upward and downward movements. With gains exceeding 3,000% over the trailing twelve months, valuation concerns naturally surface.
Memory chip pricing operates in cycles, and uncertainty exists regarding the duration of AI-fueled demand strength. Recent insider activity shows some trimming of positions. EVP Alper Ilkbahar disposed of 2,000 units in June, while insider Bernard Shek sold 600 units in early August.
Meanwhile, major institutional players have been accumulating shares. BlackRock established a fresh position valued above $23 billion during Q2. State Street, Norges Bank, and Bank of America similarly initiated new holdings.
The company has executed ten New Business Model agreements in aggregate, strengthening revenue predictability heading into fiscal 2027.
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