What happened: Sandisk (SNDK) stock sank 8% in after-hours after the flash memory and storage manufacturer posted fiscal fourth quarter earnings on Wednesday.
What’s behind the move: The stock sank as revenue guidance for the company’s fiscal first quarter came in below expectations.
SanDisk said fiscal fourth quarter revenue was $8.79 billion, beating Wall Street consensus estimates of $8.64 billion. The company noted that revenue growth came from approximately one-third higher volumes and two-thirds higher pricing.
Revenue guidance came in below expectations. The company sees fiscal first quarter revenue of $10.3 billion to $10.8 billion, versus estimates of $11.16 billion.
SanDisk also delivered adjusted earnings per share of $39.25, topping estimates of $34.37. The forecast for adjusted earnings per share for the current quarter was between $44 and $46, versus estimates of $45.58.
SanDisk also expanded its share repurchase authorization by approving an additional $14 billion buyback program.
What else you need to know: Wall Street was expecting Sandisk to continue benefiting from AI infrastructure spend, particularly demand for storage and memory products used in data centers.
Earlier this week, Sandisk shares jumped after the company, in collaboration with memory maker SK Hynix (SKHY), released a new hardware blueprint designed to make AI chips faster and cheaper to run. By creating a shared standard for high-speed memory, the partnership aims to reduce data center costs and accelerate the rollout of advanced AI apps.
Yahoo Finance AlphaSpace data shows that the company’s fiscal third quarter revenue nearly doubled from the previous three-month period, driven by a sharp increase in demand for memory and storage as AI demand has surged.
“You have a 12 times demand curve increase in memory to keep up with the speed of compute at this point in time. I think that this is a durable trade that lasts for the next 12 to 18 months,” Brian Mulberry, Zacks Investment Management chief market strategist, told Yahoo Finance earlier this week.
Sandisk, which spun off from Western Digital (WDC) in February 2025, has been one of the biggest winners this year as memory and storage have emerged as key bottlenecks in the AI infrastructure build-out.
The stock is up nearly 490% year to date and has been the best performer in the S&P 500 (^GSPC) since the start of 2026.
Wall Street has 25 Buy ratings on the stock, 5 Holds, and no Sells, with the average price target just north of $2,400.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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