Sandisk earnings for the fiscal fourth quarter came in above expectations on Tuesday, and that set off a pretty mixed reaction across the Sandisk stock price target picture almost right away. Goldman Sachs kept its Sandisk price target today unchanged at $2,200, while Mizuho trimmed its own number, even though it also kept a Buy rating on the stock. The Goldman Sachs Sandisk call and the separate Mizuho’s Sandisk note both landed right after the company posted revenue of $8.97 billion, up 51% from the prior quarter, along with guidance that fell a bit short of the more bullish forecasts on the Street. That’s not unusual right after a Sandisk earnings report like this one, and the outlook the company handed out for the next quarter is worth a look on its own.
Source: Investor.Sandisk
Sandisk Earnings Drive Stock Outlook As Analysts Cut Targets
Sandisk Earnings Show Strong Growth In Datacenter And Pricing
Full year revenue for fiscal 2026 landed at $20.25 billion, up 175% from fiscal 2025, and datacenter revenue alone jumped 437% for the year, which is a big number even by Sandisk’s own recent standards. It also shows how much this Sandisk earnings report has shifted the growth story toward datacenter this year. GAAP net income for the year came 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 on its own, GAAP net income came in at $6.90 billion, or $43.97 per diluted share, up 91% from the quarter before, with non-GAAP diluted earnings per share at $39.25.
Gross margin expanded too, reaching 84.6%, more than six points higher than the prior quarter. The board approved an additional $14 billion buyback as well, bringing total remaining authorization to $15.5 billion. Guidance for the first quarter of fiscal 2027 calls for revenue of $10.30 billion to $10.80 billion, with non-GAAP earnings per share expected between $44.00 and $46.00. Not bad, for one quarter.
David Goeckeler, Chairman and CEO of Sandisk, said:
“We closed fiscal 2026 with a leading technology portfolio, established datacenter as a key growth pillar, and deepened our customer partnerships. Our technology and products are well positioned to create value for our customers and generate growing and durable free cash flow.”
Also Read: SpaceX Rocket Crashes on the Moon: Is the Stock Facing a New Risk?
Goldman Sachs Reiterates Buy Rating On Sandisk Stock
Goldman Sachs analyst James Schneider reiterated his Buy rating on Sandisk stock right after this Sandisk earnings report, and left the Sandisk price target today exactly where it was, at $2,200, which works out to roughly 63% upside from the $1,350.50 share price at the time of the note. The Goldman Sachs Sandisk view flagged that revenue guidance came in below the Street even though earnings guidance was in line, and it also pointed out that investor expectations were running pretty high heading into the call, driven by pricing strength, AI datacenter NAND adoption and strong results from peers. On the newly signed long-term agreements and the pace of buybacks, the Goldman Sachs Sandisk note said those are the things worth watching next.
Goldman Sachs analyst James Schneider had this to say:
“We expect the stock to trade lower following a strong quarter with guidance that was below the Street on revenue, but in line on EPS. We believe investor expectations remained very elevated heading into the call given strong pricing expectations, increased AI datacenter adoption for NAND, strong peer reports; however, these have been somewhat tempered by the significant pullback in the stock, down 40% from June highs.”
Mizuho Cuts Sandisk Price Target Despite Buy Rating
Mizuho Securities kept its Buy rating on Sandisk stock too, but lowered its Sandisk price target today to $1,900 from $2,200. The Mizuho Sandisk revision lines up with the broader theme out of this Sandisk earnings report, where a pretty strong beat on revenue and profit ran into guidance that left some analysts trimming their near-term Sandisk stock price target, even while staying constructive further out. The Mizuho Sandisk cut ended up being one of the more notable target reductions among the firms that covered the print, at least right now.
Between Goldman’s unchanged $2,200 target and Mizuho’s lower $1,900 target, the Sandisk stock price target range on Wall Street has gotten a bit wider since the earnings came out. Sandisk earnings beat on both revenue and profit, and still, the below-Street guidance is what shaped Tuesday’s split reaction. Shares were trading lower at the time of writing, and the guidance debate will likely stay in focus as the market works through this Sandisk earnings report in the sessions ahead.