SanDisk Corporation's stock tumbled sharply in pre-market trading, dropping 8.2% after the flash memory manufacturer released quarterly results that beat consensus but issued forward guidance that disappointed investors who had priced in stronger near-term momentum.
The company posted adjusted earnings of $39.25 per share for Q4 FY2026 on revenue of $8.97 billion - both figures comfortably above Wall Street forecasts. Despite the standout quarter, SanDisk's revenue outlook for Q1 FY2027 of $10.3 billion to $10.8 billion landed below the elevated expectations that had built up ahead of the report. Some investors had anticipated guidance as high as $12.3 billion, and a portion of consensus estimates centered near roughly $11.16 billion.
Management commentary further pressured sentiment. CEO David Goeckeler told investors on the earnings call that unit shipments for PCs and smartphones are expected to fall by the mid-teens percentage this calendar year, signaling a softer near-term trajectory for consumer NAND demand. While Goeckeler emphasized confidence in a longer-term recovery and pointed to $93.9 billion in secured multi-year supply agreements as a structural support, the immediate outlook for consumer-facing demand weighed on the stock.
Investors also reacted to guidance around gross margins. SanDisk set forward gross margin guidance in a band of 83% to 85%, a level the market read as essentially flat on a sequential basis. For a company that had recently experienced a sharp run-up, the absence of an explicit margin acceleration contributed to investor disappointment.
The board authorized an additional $14 billion share buyback program, but the announcement supplied only limited cushioning for the share price in the face of the guidance shortfall and cautious volume forecasts.
The weakness extended beyond SanDisk. Western Digital moved lower in after-hours trading following a revenue forecast that failed to impress investors, and major Asian memory suppliers SK Hynix and Samsung Electronics both fell heavily in sympathy the next trading session. Market indicators showed the Nasdaq modestly lower on the day, while the S&P 500 and Dow Jones posted marginal gains, suggesting selling pressure was concentrated in the memory and storage segment rather than reflecting a broad market retreat.
Market dynamics contributed to the sharp move as well. The stock had rallied strongly into the earnings release and remained about 47% below its 52-week high of $2,354.39 after earlier gains, creating conditions for a "sell the news" reaction when guidance did not clear the high bar investors had set. In pre-market trading the shares moved to $1,239.79, extending what the company has experienced as one of its most volatile stretches in this market cycle.
In sum, the combination of exceptionally strong reported results, a forward revenue range that fell short of lofty expectations, a cautious near-term outlook for device shipments, and relatively steady gross margin guidance left investors reassessing near-term upside, with repercussions across the memory and storage sector.