In the quarter ended January 29, SanDisk delivered revenue of $3.03 billion, representing a 61% year-over-year increase and significantly outpacing Wall Street consensus of $2.67 billion. Adjusted earnings per share climbed to $6.20, a 404% jump from $1.22 in Q1, driven by robust sales of its solid‐state drives in both client computing and enterprise markets. The company’s return on equity improved to 10.11%, underscoring its operational leverage as AI data-center demand intensifies.

SanDisk’s data center storage division posted sequential revenue growth of 64%, reaching $440 million. This reflects hyperscaler orders for high-capacity NAND modules used in AI training workloads. Gross margin in the segment expanded to 51.1% from 29.9% a year earlier, as SanDisk captured premium pricing in a tight memory supply environment. Management cited tight lead times in NAND production and strategic commercial agreements extending through 2028 as key drivers of sustained margin enhancement.

For the upcoming quarter, SanDisk projects non-GAAP earnings per share in a range of $12.00 to $14.00, up sharply from $6.20 in Q2. Revenue is forecast between $4.4 billion and $4.8 billion, reflecting continued strength in enterprise SSD deployments. The company expects overall gross margins to reach 65%–67%, a marked improvement over the current 51.1% level, driven by product mix shift toward higher-margin, hyperscale-oriented storage solutions.

In the third quarter, the Arizona State Retirement System acquired 40,752 shares of SanDisk, representing a $4.57 million investment, according to SEC filings. Additional institutional investors, including Voya Investment Management and GAMMA Investing, added positions valued at $8.92 million and $0.44 million respectively. These purchases underscore growing confidence among fiduciaries in SanDisk’s leadership in the AI storage market and its multi-year growth runway.