Sandisk earnings for the fiscal fourth quarter got here in above expectations on Tuesday, and that set off a reasonably blended response throughout the Sandisk inventory value goal image virtually instantly. Goldman Sachs stored its Sandisk value goal right now unchanged at $2,200, whereas Mizuho trimmed its personal quantity, though it additionally stored a Purchase score on the inventory. The Goldman Sachs Sandisk name and the separate Mizuho’s Sandisk be aware each landed proper after the corporate posted income of $8.97 billion, up 51% from the prior quarter, together with steering that fell a bit wanting the extra bullish forecasts on the Road. That’s common proper after a Sandisk earnings report like this one, and the outlook the corporate handed out for the subsequent quarter is value a glance by itself.
Sandisk Earnings Drive Inventory Outlook As Analysts Lower Targets
Sandisk Earnings Present Sturdy Progress In Datacenter And Pricing
Full 12 months income for fiscal 2026 landed at $20.25 billion, up 175% from fiscal 2025, and datacenter income alone jumped 437% for the 12 months, which is an enormous quantity even by Sandisk’s personal latest requirements. It additionally reveals how a lot this Sandisk earnings report has shifted the expansion story towards datacenter this 12 months. GAAP web earnings for the 12 months got here in at $11.43 billion, or $73.76 per diluted share, and non-GAAP diluted earnings per share reached $70.88. For the fourth quarter by itself, GAAP web earnings got here in at $6.90 billion, or $43.97 per diluted share, up 91% from the quarter earlier than, with non-GAAP diluted earnings per share at $39.25.
Gross margin expanded too, reaching 84.6%, greater than six factors greater than the prior quarter. The board authorised a further $14 billion buyback as nicely, bringing complete remaining authorization to $15.5 billion. Steerage for the primary quarter of fiscal 2027 requires income of $10.30 billion to $10.80 billion, with non-GAAP earnings per share anticipated between $44.00 and $46.00. Not unhealthy, for one quarter.
David Goeckeler, Chairman and CEO of Sandisk, stated:
“We closed fiscal 2026 with a number one know-how portfolio, established datacenter as a key progress pillar, and deepened our buyer partnerships. Our know-how and merchandise are nicely positioned to create worth for our prospects and generate rising and sturdy free money stream.”
Goldman Sachs Reiterates Purchase Ranking On Sandisk Inventory
Goldman Sachs analyst James Schneider reiterated his Purchase score on Sandisk inventory proper after this Sandisk earnings report, and left the Sandisk value goal right now precisely the place it was, at $2,200, which works out to roughly 63% upside from the $1,350.50 share value on the time of the be aware. The Goldman Sachs Sandisk view flagged that income steering got here in under the Road though earnings steering was in line, and it additionally identified that investor expectations have been working fairly excessive heading into the decision, pushed by pricing energy, AI datacenter NAND adoption and robust outcomes from friends. On the newly signed long-term agreements and the tempo of buybacks, the Goldman Sachs Sandisk be aware stated these are the issues value watching subsequent.
Goldman Sachs analyst James Schneider had this to say:
“We anticipate the inventory to commerce decrease following a powerful quarter with steering that was under the Road on income, however in line on EPS. We imagine investor expectations remained very elevated heading into the decision given sturdy pricing expectations, elevated AI datacenter adoption for NAND, sturdy peer reviews; nevertheless, these have been considerably tempered by the numerous pullback within the inventory, down 40% from June highs.”
Mizuho Cuts Sandisk Worth Goal Regardless of Purchase Ranking
Mizuho Securities stored its Purchase score on Sandisk inventory too, however lowered its Sandisk value goal right now to $1,900 from $2,200. The Mizuho Sandisk revision strains up with the broader theme out of this Sandisk earnings report, the place a reasonably sturdy beat on income and revenue bumped into steering that left some analysts trimming their near-term Sandisk inventory value goal, even whereas staying constructive additional out. The Mizuho Sandisk reduce ended up being one of many extra notable goal reductions among the many corporations that coated the print, at the very least proper now.
Between Goldman’s unchanged $2,200 goal and Mizuho’s decrease $1,900 goal, the Sandisk inventory value goal vary on Wall Road has gotten a bit wider because the earnings got here out. Sandisk earnings beat on each income and revenue, and nonetheless, the below-Road steering is what formed Tuesday’s break up response. Shares have been buying and selling decrease on the time of writing, and the steering debate will seemingly keep in focus because the market works via this Sandisk earnings report within the periods forward.
