MILPITAS, California, May 4, 2026, 09:02 PDT
Sandisk surged $60.26 to $1,247.26 Monday morning, extending gains from its post-earnings rally. Last week’s early drop didn’t stick—investors focused on surging AI-driven storage demand and new long-term deals. The stock touched $1,274.77 at session highs.
Sandisk is making its move now, betting it can show that NAND flash—the backbone of solid-state drives—has outgrown its reputation as just another cyclical part for phones and PCs. CEO David Goeckeler called this quarter a “fundamental inflection point,” underscoring Sandisk’s tilt toward higher-value, data center-centric markets. Sandisk Corporation
There was plenty for investors to digest. Sandisk reported third-quarter revenue of $5.95 billion and posted non-GAAP diluted EPS of $23.41, with gross margin on a non-GAAP basis at 78.4%. The company’s presentation pointed to adjusted free cash flow of $2.96 billion, and flagged a $6 billion share buyback—set in motion right after wiping out all its debt.
It really comes down to the contracts. On the earnings call, Chief Financial Officer Luis Visoso told analysts the company secured three deals last quarter that guarantee about $42 billion in minimum contractual revenue. Another five agreements signed so far carry financial guarantees topping $11 billion. Visoso said the contract terms blend fixed and variable pricing, with fixed rates taking the lead on the short-term side.
For analysts, it’s not just about one solid quarter. Sandisk managed to outpace rivals on price hikes, according to Wedbush’s Matt Bryson. Citigroup bumped its price target up to $1,300, while Barclays and Wedbush are now both targeting $1,200, Benzinga reported Monday.
Opinions on Sandisk’s momentum are split. Morningstar Research Services analyst William Kerwin described Sandisk’s Q3 results as “phenomenal” in comments to Yahoo Finance. He did, though, caution that the pricing cycle is “finite,” referencing the memory sector’s tendency to swing between scarcity and oversupply. Yahoo Finance
That tension showed up right away: Sandisk fell more than 6% in after-hours trading on the report, Reuters said, even though its guidance topped Wall Street’s estimates. Michael Ashley Schulman, partner at Cerity Partners, noted that neither Sandisk nor Western Digital delivered the “wow factor”—the kind of outlook needed to sustain big gains after their recent rallies. Reuters
Momentum is running hot in the group. Western Digital announced fiscal third-quarter revenue of $3.34 billion, up 45% from a year ago. The company also raised its quarterly dividend to 15 cents a share, a 20% increase, as high-capacity drives for AI and cloud storage fly off the shelves. Seagate, too, is benefiting from heavy data-center spend.
This shift comes with its own set of risks. In a recent filing, Sandisk disclosed $41.6 billion in remaining performance obligations—contracted revenue that hasn’t yet shown up on the books. The company anticipates roughly 15% of that figure will convert in the next year. But there’s a catch: the filing points out that if customers don’t follow through on those purchase commitments, even guarantees may fail to offset the hit to sales, margins, or ballooning inventory.
The real challenge starts now: execution. Sandisk expects revenue and earnings to rise again. Still, with shares riding high, even a whiff of weaker price gains, less robust data-center appetite, or missed contracts could land a fast, sharp blow.
