SanDisk stock fell 5.4% in regular trading on August 6 despite crushing fourth-quarter earnings, as the memory-chip maker’s forward guidance disappointed investors who had priced in even stronger results. The company reported fiscal Q4 revenue of $8.97 billion, up 372% year-over-year and well ahead of the $8.48 billion Wall Street expected, with adjusted earnings per share of $39.25 versus the consensus estimate of $34.96.
Yet shares declined because SanDisk’s outlook for the September quarter fell short of analyst expectations. The company guided for Q1 2027 revenue between $10.3 billion and $10.8 billion, with a midpoint of $10.55 billion below the FactSet consensus of $10.8 billion, according to Morningstar. The miss on forward guidance overshadowed the strong quarterly beat, a pattern seen across the technology sector when investors react to weak guidance despite earnings beats.
SanDisk’s surge in Q4 results reflects explosive demand for AI infrastructure. The company’s data-center business generated $2.97 billion in revenue, up 103% year-over-year and above analyst estimates for $2.74 billion. Edge revenue also beat expectations, reaching $5.43 billion against the consensus for $4.46 billion. The only weakness came from consumer storage, which fell 32% year-over-year to $556 million as enterprise demand consumed most of the company’s output.
CEO David Goeckeler attributed the results to the company’s positioning in AI data storage, stating that SanDisk had established its data-center business “as a key growth pillar” and deepened partnerships with major customers. The company signed eight multiyear customer agreements with minimum expected revenue of $93.3 billion at floor pricing, providing visibility into future demand even as current supply constraints persist.
Analysts attributed the stock decline to investor expectations that had run ahead of even SanDisk’s impressive results. Wedbush analyst Matt Bryson noted before earnings that he expected strong performance given robust end-market demand, but the Q1 guidance indicated the company was being more cautious about near-term growth. While SanDisk beat on both revenue and adjusted EPS for the quarter, the forward-looking statement signaled that the company saw moderation ahead, prompting momentum traders to exit positions.
Similar earnings-beat-but-guidance-miss scenarios have played out across technology stocks, where a strong quarter alone is insufficient if the company cannot project equally strong results forward. The pattern reflects how modern equity markets price not just current performance but the trajectory investors expect, making forward guidance as critical as backward-looking results.
Sources
- Wall Street Journal — SanDisk Q4 revenue of $8.97 billion, net income of $6.9 billion, adjusted EPS of $39.25
- Morningstar — Q4 beat details, Q1 2027 guidance of $10.3–$10.8 billion revenue missing FactSet consensus of $10.8 billion, stock decline in after-hours trading
- MarketBeat — Q1 2027 EPS guidance of $44–$46 beating consensus of $41.45
- Seeking Alpha — Stock down 3% in extended trading, mixed guidance overshadowing strong Q4 results
- Yahoo Finance — Q4 earnings call highlights, 84.6% non-GAAP gross margin, revenue up 372% year-over-year
