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Sandisk reported fiscal fourth-quarter revenue of $8.97B on Aug. 5, up 372% year-over-year and ahead of the concensus Wall Street had expected.
Net income hit $6.9B compared with a loss of $23M in the same period last year. About one-third of the sequential revenue gain came from higher volumes, and two-thirds came from higher prices.
The datacenter segment was the clearest engine of growth. Datacenter revenue reached $2.98B in the quarter and $5.15B for the full fiscal year, a 437% jump from the prior year's results.
That segment didn't even exist as a formal reporting category until the company's fiscal first-quarter earnings call in Nov. 2025, when it logged just $269M.
The backdrop is straightforward: major cloud providers are racing to build AI infrastructure, and memory and storage have become a key bottleneck.
Amazon CEO Andy Jassy recently said the company now expects to spend roughly $220B in cash capex in 2026, with higher memory costs pushing that figure up from an earlier $200B estimate, and that he still didn't expect capacity to meet demand in 2026 or 2027.
For all of fiscal 2026, Sandisk posted revenue of $20.25B, up 175% from $7.36B the prior year. Full-year net income was $11.43B versus a loss of $1.64B in 2025.
The company paid off its long-term debt entirely and ended the year with $4.76B in cash.
Sandisk's board also approved a new $14B share repurchase authorization, bringing the total remaining buyback capacity to $15.5B. In Q4 alone, the company repurchased $4.52B in stock.
Despite the blowout quarter, shares fell in after-hours trading after the company's Q1 2027 revenue guidance of $10.3B to $10.8B came in below the analyst consensus of $11.16B.
The stock had already had a rough stretch. Despite being up roughly 490% year to date and the best S&P 500 performer in 2026, shares dropped 47% in July alone as investors rotated out of AI hardware names that had seen enormous gains.
Wall Street's broader view on the stock remains firmly positive: 25 Buy ratings, 5 Holds, and zero Sells, with an average price target just above $2.4K.
The guidance miss introduced fresh uncertainty about the pace of demand in coming quarters, but the underlying numbers showed no sign of a slowdown yet.
