Sandisk Q2 2026 earnings: revenue jumps 31% as enterprise SSD demand surges
Sandisk's fiscal Q2 revenue rose sharply on booming data-center chip demand, and the company guided for another large jump next quarter.
| Q2 2026 | Reported |
|---|---|
| EPS | $5.15 |
| Revenue | $3.02B |
Figures as reported by the company to the SEC for the quarter ended January 2, 2026. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Revenue climbed 31% from the prior quarter and came in above the range the company itself had guided to just a few months earlier, driven by stronger demand and a shift toward higher-value products.
- Enterprise SSDs (storage chips sold mainly to data centers) were a standout, growing 64% sequentially. CEO David Goeckeler said the results reflect the company’s ability to capitalize on a better product mix, faster enterprise SSD deployments, and strengthening demand.
- Profitability margins were very high on a trailing-twelve-month basis - gross margin near 71% and net margin above 56% - consistent with a NAND flash memory market that Sandisk described as undersupplied, a condition that tends to push chip prices and profits higher.
- Trailing revenue growth of over 175% year-over-year reflects both a recovering memory-chip pricing cycle and the fact that Sandisk only became a standalone public company (spun off from Western Digital) within the past year, which makes year-ago comparisons unusually favorable.
- Return on equity was notably high (93% on a trailing basis) - a figure that can run high for a newly independent company still building up its equity base, on top of genuinely strong profits.
- Management said it expects the memory market to be even more undersupplied in the current quarter, with total unit shipments down slightly for seasonal reasons even as data-center demand keeps accelerating.
- For next quarter, Sandisk guided to revenue of $4.4 billion to $4.8 billion, non-GAAP gross margin of 65%-67%, and non-GAAP earnings per share of $12-$14, pointing to continued sequential growth.
- Management framed the quarter as validation of a deliberate ‘structural reset’ - aligning supply with what it called attractive, sustained demand - aimed at supporting disciplined growth and steady financial performance going forward.
Q2 2026 in context
| Metric | Jan 2026 | Dec 2024 | Change |
|---|---|---|---|
| Revenue | $3.0B | $1.9B | +61.2% |
| Net income | $803M | $104M | +672.1% |
| Free cash flow | $980M | $47M | +1985.1% |
| Diluted EPS | $5.15 | $0.72 | +615.3% |
| Gross margin | 50.9% | 32.3% | +18.6 pts |
| Operating margin | 35.2% | 10.4% | +24.8 pts |
| Net margin | 26.5% | 5.5% | +21.0 pts |
Figures for the quarter ended Jan 2026 and the quarter ended Dec 2024, as reported to the SEC.
How the stock took it
Sandisk Corp closed at $539.30 on Jan 29, 2026, the last session before the report, and at $665.24 on Feb 2, 2026, the first session after it — +23.4% across the report.
| Earlier report | Close before | Close after | Change |
|---|---|---|---|
| Nov 7, 2025 | $207.69 | $267.95 | +29.0% |
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report · earnings call