Buy Sandisk Stock Before Q4 Earnings? Here's What to Know

Sandisk SNDK is set to report its fourth-quarter fiscal 2026 results on Aug. 5.

For the to-be-reported quarter, SNDK expects revenues between $7.750 billion and $8.25 billion, driven by both higher bit shipments and improved pricing.  The Zacks Consensus Estimate for revenues is pegged at $8.3 billion, suggesting 336.64% growth from the figure reported in the year-ago quarter.

Sandisk expects non-GAAP earnings between $30 and $33 per share. The consensus mark for earnings is pegged at $34.24 per share, up 2.8% over the past 30 days. SNDK reported earnings of 29 cents per share in the year-ago quarter.

Consensus Estimate Trend

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SNDK’s earnings have surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average being 380.92%. 

Let us see how things have shaped up for the upcoming announcement.

Key Factors to Note Ahead of SNDK’s Q4 Results

Sandisk's fourth-quarter fiscal 2026 results are expected to have benefited from continued strength in the Data Center business, supported by surging enterprise SSD demand and favorable NAND pricing. Enterprise SSD momentum is likely to have remained strong as hyperscale customers expanded AI infrastructure, while the company began recognizing revenue from its QLC-based Stargate storage platform, complementing its successful TLC SSD portfolio. 

AI-driven inference workloads are expected to have remained a key growth catalyst. Technologies such as KV cache, Retrieval-Augmented Generation (RAG) and increasingly agentic AI require high-capacity, low-latency NAND flash, making enterprise SSDs an essential part of next-generation AI infrastructure. As hyperscalers optimized inference architectures, demand for scalable NAND storage continued to strengthen, supporting higher enterprise SSD shipments and a richer product mix during the to-be-reported quarter.

The Edge segment is also expected to have contributed positively, supported by increasing storage content in premium smartphones and AI PCs. Sandisk highlighted that on-device AI capabilities are driving higher storage requirements and greater adoption of high-performance NAND solutions. Continued demand from PCs, smartphones, automotive and IoT markets likely to have supported revenue growth while enabling Sandisk to prioritize higher-value customer engagements.

Sandisk Shares Outperform Sector & Peers

Sandisk shares have jumped 411.7% year to date (YTD), outperforming the Zacks Computer and Technology sector’s appreciation of 11.7%. The company has outperformed its storage peers, including Western Digital WDC, Seagate STX and Micron Technology MU, over the same time frame, shares of which have returned 216.2%, 210.9% and 188.3%, respectively.

SNDK Stock’s Price Performance    

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Sandisk shares are trading at a premium, as suggested by a Value Score of D. In terms of the forward 12-month price-to-sales (P/S), Sandisk is trading at 3.90X, higher than the Zacks Computer-Storage Devices industry’s 3.31X and Micron’s 3.89X. However, SNDK shares are trading at a lower multiple compared with Western Digital’s 10.09X and Seagate’s 9.99X.

SNDK Stock’s Valuation

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Strong AI Demand to Aid SNDK’s Prospects

Sandisk’s biggest long-term catalyst is the rapid expansion of AI inference workloads. The company expects inference, reasoning models, agentic AI, KV Cache and RAG applications to require significantly more high-performance NAND storage. As hyperscalers build AI infrastructure, enterprise SSD demand is expected to remain a major growth driver for years. 

Sandisk has significantly strengthened its enterprise SSD business with industry-leading TLC SSDs while expanding into high-capacity QLC solutions through its Stargate platform. The company expects both product families to play complementary roles in AI data centers, increasing SNDK’s exposure to its fastest-growing end market.

Sandisk continues to benefit from rising storage requirements in AI PCs, premium smartphones, automotive systems, robotics and IoT devices. The company believes NAND is becoming increasingly important across virtually every major technology platform, providing diversified long-term demand drivers beyond the data center. Sandisk believes its advanced NAND architecture enables industry-leading performance while allowing mid-to-high-teens annual bit growth through technology migrations rather than expensive greenfield capacity additions.

The company’s new business models (NBMs) are expected to reduce the historical cyclicality of the NAND industry. These multiyear agreements provide committed demand, supply assurance, financial guarantees and a combination of fixed and variable pricing, giving Sandisk greater revenue visibility, pricing stability and more durable margins over several years. The company expects the proportion of contracted business to increase over time.

Conclusion

Sandisk appears well positioned ahead of its fourth-quarter fiscal 2026 results, supported by robust AI-driven enterprise SSD demand, favorable NAND pricing and expanding adoption of its TLC and QLC storage solutions. The company’s growing exposure to AI infrastructure, disciplined supply strategy and multiyear customer agreements are enhancing revenue visibility and reducing business cyclicality. While its premium valuation may limit near-term upside, sustained momentum in data-center storage and diversified demand across AI PCs, smartphones and automotive markets reinforce Sandisk's long-term growth prospects, making the upcoming earnings release an important catalyst for the stock.

Sandisk currently sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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