Sandisk (SNDK) Q2 2026 Financial Results Summary
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Sandisk Corporation (SNDK) Q2 2026 Financial Results Summary
MILPITAS, Calif. — January 29, 2026 — Sandisk Corporation (Nasdaq: SNDK) reported its fiscal second quarter financial results today.
Financial Highlights
- Revenue:
- Q2 2026: $3.03 billion, an increase of 31% sequentially from Q1 2026 ($2.308 billion) and up 61% from Q2 2025 ($1.876 billion).
- Gross Margin:
- GAAP: 50.9%, up 21.1 percentage points (ppt) from Q1 2026 (29.8%) and up 18.6 ppt from Q2 2025 (32.3%).
- Non-GAAP: 51.1%, up 21.2 ppt sequentially and 18.6 ppt year-over-year.
- Operating Expenses:
- GAAP: $476 million, a decrease of 7% from Q1 2026 ($511 million) and up 16% from Q2 2025 ($411 million).
- Non-GAAP: $413 million, down 7% from Q1 2026 ($446 million) and up 10% from Q2 2025 ($376 million).
- Operating Income:
- GAAP: $1.065 billion, an increase of 505% sequentially and up 446% year-over-year.
- Non-GAAP: $1.133 billion, up 362% quarter-over-quarter and 386% year-over-year.
- Net Income:
- GAAP: $803 million, up 617% from Q1 2026 ($112 million) and up 672% from Q2 2025 ($104 million).
- Non-GAAP: $967 million, up 434% from Q1 2026 ($181 million) and 443% from Q2 2025 ($178 million).
- Diluted Net Income Per Share:
- GAAP: $5.15, up 587% from Q1 2026 ($0.75) and 615% from Q2 2025 ($0.72).
- Non-GAAP: $6.20, an increase of 408% from Q1 2026 ($1.22) and 404% from Q2 2025 ($1.23).
Revenue by End Market
- Datacenter: $440 million, up 64% from Q1 2026 ($269 million) and 76% from Q2 2025 ($250 million).
- Edge: $1.678 billion, an increase of 21% from $1.387 billion in Q1 2026 and 63% from $1.028 billion in Q2 2025.
- Consumer: $907 million, up 39% from Q1 2026 ($652 million) and 52% from Q2 2025 ($598 million).
- Total Revenue: $3.025 billion, representing a 31% sequential growth and 61% year-over-year growth.
Quarterly Dividend and Share Repurchase
- Sandisk Corporation did not declare a quarterly dividend nor mention any share repurchase in the report.
Business Outlook for Q3 2026
- Expected Revenue: Ranges from $4.40 billion to $4.80 billion.
- Expected Non-GAAP Diluted Net Income Per Share: Between $12.00 and $14.00.
- Expected Gross Margin: Forecasted to be between 64.9% and 66.9%.
Investor Communications
Sandisk Corporation will host an investment community conference call today at 1:30 p.m. Pacific/4:30 p.m. Eastern to discuss these results and the business outlook for the fiscal third quarter of 2026. The conference call will be broadcast live online and accessible at investor.sandisk.com.
Conclusion
Sandisk Corporation’s Q2 2026 results show a significant improvement in both revenue and profitability metrics compared to previous quarters and the same period last year, driven by strong demand particularly in the datacenter market and effective cost management strategies. The outlook for Q3 appears promising, with expected revenue and EPS standing at higher ranges than current performance.
| Three Months Ended | Six Months Ended | |||
|---|---|---|---|---|
| January 2, 2026 | December 27, 2024 | January 2, 2026 | December 27, 2024 | |
| Revenue, net | $ 3,025 | $ 1,876 | $ 5,333 | $ 3,759 |
| Cost of revenue | 1,484 | 1,270 | 3,105 | 2,427 |
| Gross profit | 1,541 | 606 | 2,228 | 1,332 |
| Operating expenses: | ||||
| Research and development | 327 | 279 | 643 | 562 |
| Selling, general and administrative | 139 | 142 | 318 | 272 |
| Business separation costs | 9 | 21 | 18 | 41 |
| Employee termination and other | 1 | 3 | -2 | 5 |
| (Gain) loss on business divestiture | — | -34 | 10 | -34 |
| Total operating expenses | 476 | 411 | 987 | 846 |
| Operating income | 1,065 | 195 | 1,241 | 486 |
| Interest and other expense: | ||||
| Interest income | 12 | 2 | 28 | 5 |
| Interest expense | -25 | -4 | -65 | -6 |
| Other expense, net | -115 | -20 | -143 | -45 |
| Total interest and other expense, net | -128 | -22 | -180 | -46 |
| Income before taxes | 937 | 173 | 1,061 | 440 |
| Income tax expense | 134 | 69 | 146 | 125 |
| Net income | $ 803 | $ 104 | $ 915 | $ 315 |
| Net income per common share: | ||||
| Basic | $ 5.46 | $ 0.72 | $ 6.27 | $ 2.17 |
| Diluted | $ 5.15 | $ 0.72 | $ 6.02 | $ 2.17 |
| Weighted average shares outstanding: | ||||
| Basic | 147 | 145 | 146 | 145 |
| Diluted | 156 | 145 | 152 | 145 |
| January 2, 2026 | June 27, 2025 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 1,539 | $ 1,481 |
| Accounts receivable, net | 1,239 | 1,068 |
| Inventories | 1,970 | 2,079 |
| Income tax receivable | 45 | 66 |
| Other current assets | 357 | 392 |
| Total current assets | 5,150 | 5,086 |
| Property, plant and equipment, net | 631 | 619 |
| Notes receivable and investments in Flash Ventures | 677 | 654 |
| Goodwill | 4,995 | 4,999 |
| Deferred tax assets | 62 | 58 |
| Income tax receivable, non-current | 98 | 80 |
| Other non-current assets | 1,385 | 1,489 |
| Total assets | $ 12,998 | $ 12,985 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 436 | $ 366 |
| Accounts payable to related parties | 433 | 400 |
| Accrued expenses | 393 | 425 |
| Accrued compensation | 273 | 173 |
| Income tax payable | 99 | 43 |
| Current portion of long-term debt | 20 | 20 |
| Total current liabilities | 1,654 | 1,427 |
| Deferred tax liabilities | 22 | 17 |
| Long-term debt | 583 | 1,829 |
| Other liabilities | 526 | 496 |
| Total liabilities | 2,785 | 3,769 |
| Commitments and contingencies (Notes 10, 11, 14 and 15) | ||
| Shareholders’ equity: | ||
| Common stock, $0.01 par value; authorized — 450 shares; issued and outstanding — 148 shares and 146 shares, respectively | $ 1 | $ 1 |
| Additional paid-in capital | 11,336 | 11,248 |
| Accumulated deficit | -869 | -1,784 |
| Accumulated other comprehensive loss | -255 | -249 |
| Total shareholders’ equity | 10,213 | 9,216 |
| Total liabilities and shareholders’ equity | $ 12,998 | $ 12,985 |