Sandisk Revenue Surges 97% Sequentially to $5.95 Billion, Driven by Datacenter Growth

Key facts

• Q3 fiscal 2026 revenue of $5.95 billion, up 97% sequentially.
• GAAP net income was $3,615 million ($23.03 per diluted share).
• Non-GAAP diluted net income per share reached $23.41.
• Datacenter revenue surged 233% year-over-year.
• The company completed its separation from Western Digital on February 21, 2025.
• Q4 fiscal 2026 revenue guidance is $7.75 billion to $8.25 billion.
• Non-GAAP diluted EPS guidance for Q4 is $30.00 to $33.00.
• A $1.8 billion impairment charge was recognized in Q3 fiscal 2025 due to stock price decline.

A Turning Point for the Standalone Chipmaker

Sandisk Corporation has posted a dramatic turnaround in its fiscal third quarter, with revenue more than doubling from the previous quarter to $5.95 billion. The company, which became an independent publicly traded entity on February 21, 2025, after splitting from Western Digital, described the period as a fundamental inflection point. The results mark the first full quarter since the separation and reflect a strategic shift toward higher-value customers, particularly in the datacenter segment. Revenue from datacenter operations soared 233%, a surge that executives attributed to both mix improvement and stronger pricing power.

Record Profitability and Impairment Resolved

GAAP net income for the quarter ended April 3, 2026, came in at $3,615 million, or $23.03 per diluted share. On a non-GAAP basis, diluted earnings per share reached $23.41, underscoring the company's operational leverage. The strong performance follows a period of significant financial strain. In the third quarter of fiscal 2025, Sandisk identified impairment indicators related to its common stock trading price and market capitalization, prompting a quantitative analysis. Management determined that the carrying value of its reporting unit exceeded fair value, leading to a $1.8 billion impairment charge for the three and nine months ended March 28, 2025.

From Western Digital Separation to Independent Growth

Sandisk's journey to independence began on October 30, 2023, when Western Digital's board authorized management to pursue a separation plan. The move received final approval from Western Digital's board and was completed on February 21, 2025, creating a standalone company listed on Nasdaq under the ticker SNDK. All financial statements for periods prior to the separation are now presented as consolidated results under U.S. GAAP. The company's management noted that the third-quarter figures represent the most current information available, and the historical results have been restated accordingly.

Q4 Outlook Signals Continued Momentum

Looking ahead, Sandisk provided an optimistic forecast for the fiscal fourth quarter of 2026. Revenue is expected to land between $7.75 billion and $8.25 billion, while non-GAAP diluted net income per share is projected in the range of $30.00 to $33.00. The guidance suggests that the company's mix shift toward datacenter clients and higher pricing will persist. Analysts will scrutinize whether Sandisk can sustain its growth trajectory as it competes in the volatile memory-chip market.

Investor Conference Call and Market Reaction

Sandisk will host an investment community conference call at 1:30 p.m. Eastern Time today to discuss the results and business outlook. The call is expected to provide further detail on the drivers behind the datacenter surge and the company's strategy for maintaining its competitive edge. The stock, which has drawn attention in Taiwan and other markets, has been a focus for investors seeking exposure to the memory sector. The strong earnings and guidance are likely to reinforce confidence in Sandisk's post-separation trajectory.

The bottom line

• Sandisk's Q3 revenue of $5.95 billion more than doubled sequentially, driven by a 233% jump in datacenter sales.
• The company swung to profitability with GAAP net income of $3,615 million, recovering from a $1.8 billion impairment a year earlier.
• Sandisk became independent from Western Digital in February 2025, and its financials now reflect a standalone entity.
• Q4 guidance of up to $8.25 billion in revenue and $33.00 non-GAAP EPS points to sustained growth.
• The company's strategy of focusing on higher-value customers and pricing power is yielding results.