SanDisk (SNDK) is showing a sharp decline in early trading, despite recording better-than-expected performance in the fourth quarter (April–June) of fiscal year 2026.

Strong Performance Continues... Decisively Beats Market Expectations On the 5th (local time), SanDisk reported quarterly revenue of $8.97 billion for the period. This represents a 51% increase from the previous quarter, easily surpassing the market expectation of $8.48 billion based on FactSet. Profitability also improved. Adjusted earnings per share (EPS) came in at $39.25, breaking through the market forecast of $34.96, while the gross margin stood at 84.6%, demonstrating solid performance.

Mixed Market Reactions on Next Quarter's Guidance However, market assessments are mixed regarding the earnings forecast for the next quarter covering July–September. SanDisk provided revenue guidance of $10.3 billion to $10.8 billion. While this is in line with the LSEG consensus market forecast of $10.5 billion, it falls slightly short of the FactSet consensus of $10.8 billion. On the other hand, the adjusted EPS guidance was set at $44 to $46, exceeding market expectations based on both FactSet ($44.72) and LSEG ($43.12), signaling a continued upward trend.

Extending Previous Day's Decline, Down 12.76% in Early Trading Despite the earnings announcement, the stock price continues to struggle. SanDisk closed at $1,350.50 on the 5th (local time), down 5.40% in regular trading, and fell an additional 7.96% in after-hours trading. As this trend continued, as of 10:32 PM on the 6th (Korean Time), SanDisk was trading at $1,178.12 in early U.S. trading, down 12.76% from the previous day. With the stock showing weakness just as the market opened, investor attention is now focused on the future price trajectory in the near term.

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