Core Insights - Sandisk (SNDK) reported strong second-quarter fiscal 2026 results, with non-GAAP earnings of $6.20 per share, exceeding the Zacks Consensus Estimate by 75.14% [1][7] - Revenues increased significantly by 61.2% year over year and 31.1% sequentially to $3.03 billion, surpassing the Zacks Consensus Estimate by 13.49% [2][7] Revenue Breakdown - Datacenter revenues surged 76% year over year and 63.6% sequentially to $440 million, benefiting from strong adoption among AI infrastructure builders and technology companies [3] - Edge revenues rose 63.2% year over year and 21% sequentially to $1.68 billion, exceeding the Zacks Consensus Estimate by 10.61% [4] - Consumer revenues increased by 51.7% year over year and 39.1% sequentially to $907 million, also beating the Zacks Consensus Estimate by 17.95% [4] Margin Analysis - Gross margin improved to 51.1%, up from 32.5% in the year-ago quarter and 29.9% in the previous quarter [5] - Operating margin expanded to 32%, compared to 9.5% reported in the year-ago quarter and 24.1% in the previous quarter [5] Financial Position - As of January 2, 2026, Sandisk had cash and cash equivalents of $1.54 billion against long-term debt of $583 million [6] - Adjusted free cash flow for the second quarter was $843 million, a significant increase from $91 million in the year-ago quarter [6] Future Guidance - For Q3 fiscal 2026, Sandisk anticipates revenues between $4.4 billion and $4.8 billion, with gross margin expected in the 65%-67% range [7][8] - Earnings are projected to be between $12 per share and $14 per share [8]
Sandisk Q2 Earnings Beat Estimates, Revenues Increase Y/Y, Shares Rise