Key Takeaways
- Shares of Sandisk climbed 2.7% Tuesday following an Argus upgrade from Hold to Buy rating
- Fourth quarter earnings per share reached $39.25, surpassing analyst expectations of $33.28, while revenue jumped 371.6% year over year to $8.96 billion
- Company leadership projects Q1 2027 EPS between $44 and $46, anticipating revenue in the range of $10.3 billion to $10.8 billion
- Directors authorized a $14 billion stock repurchase initiative
- Analyst consensus stands at “Moderate Buy” with mean price target reaching $1,853.14
Shares of Sandisk (SNDK) advanced 2.7% during Tuesday’s trading session after receiving an upgrade from Argus, moving from Hold to Buy. The stock reached an intraday peak of $1,287.04 before closing at $1,271.05, representing a gain from Monday’s final price of $1,237.92.
The rating improvement follows an impressive fiscal fourth quarter performance. The company delivered earnings per share of $39.25, significantly exceeding the consensus forecast of $33.28. Total revenue reached $8.96 billion, representing a 371.6% increase compared to the same period last year.
Such explosive growth demands attention. Datacenter revenue specifically skyrocketed 437% during fiscal 2026, fueled by escalating demand for high-capacity NAND storage solutions as artificial intelligence models continue expanding.
The quarter-over-quarter revenue expansion wasn’t solely volume-driven. Enhanced pricing contributed meaningfully, demonstrating genuine pricing strength with clients. This dynamic is propelling both profit margins and operating cash flows upward.
Company executives provided fiscal Q1 2027 revenue guidance ranging from $10.3 billion to $10.8 billion. The midpoint represents approximately 17.6% growth from the previous quarter. Non-GAAP gross margin expectations fall between 83% and 85%.
Q1 2027 EPS guidance was established at $44 to $46. Looking at the complete fiscal year, Wall Street projects Sandisk will deliver $187.19 in earnings per share.
Directors also greenlit a $14 billion buyback authorization, representing approximately 6.6% of shares outstanding.
Wall Street Price Targets Show Wide Dispersion
The Street’s perspective on SNDK remains predominantly optimistic, though price objectives demonstrate considerable variance. Wedbush elevated its target to $2,000 alongside an outperform designation. Mizuho pushed higher still, increasing its objective to $2,200. Susquehanna reduced its target from $3,250 down to $3,050 while maintaining a favorable stance.
The aggregate view among 26 covering analysts registers as “Moderate Buy,” comprising three Strong Buy recommendations, nineteen Buy ratings, and four Hold opinions. The mean price objective stands at $1,853.14.
Zacks reports an elevated short-term average target of $2,287.05, with the most optimistic projection reaching $3,169.
Sandisk currently maintains a Zacks Rank of 1, designating it as a Strong Buy.
Notable Risk Factors Remain
The equity isn’t devoid of concerns. SNDK exhibits a beta of 5.21, indicating substantial volatility in either direction. The stock has appreciated over 3,000% during the trailing twelve months, prompting valuation concerns.
Memory chip pricing follows cyclical patterns, and uncertainty persists regarding the duration of AI-fueled demand strength. Certain company insiders have reduced their holdings. EVP Alper Ilkbahar disposed of 2,000 units during June, while insider Bernard Shek sold 600 units in early August.
Prominent institutional investors have established significant positions. BlackRock initiated a new stake exceeding $23 billion during Q2. State Street, Norges Bank, and Bank of America similarly opened new holdings.
Sandisk has executed ten New Business Model agreements in aggregate, strengthening revenue predictability heading into fiscal 2027.
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