SanDisk Q2 Revenue Jumps 61% YoY, Q3 EPS Guidance Raised to $12–$14
SanDisk's Q2 revenue soared 61% YoY to $3.03B, exceeding consensus of $2.67B, and non-GAAP EPS jumped to $6.20 from estimates of $3.31. Data center revenue surged 64% sequentially to $440M, gross margin expanded to 51.1% from 29.9%, and Q3 guidance projects $4.4–4.8B revenue with 65–67% margins and EPS of $12–$14.
1. Stellar Q2 Earnings Propel Revenue Growth
SanDisk reported quarterly revenues of $3.03 billion, representing a 61% increase year-over-year and surpassing consensus estimates by more than $360 million. Non-GAAP earnings per share of $6.20 exceeded analysts’ forecasts by $2.89, driven by robust demand for flash storage solutions in hyperscale data centers and enterprise applications.
2. Data Center Business Accelerates Higher-Margin Mix
Sales to data center customers jumped sequentially by 64% to $440 million, underscoring SanDisk’s rapid shift toward high-margin enterprise storage products. This segment now constitutes a growing share of total revenue, reflecting strong orders from major cloud providers investing in AI training infrastructure.
3. Significant Margin Expansion with Bullish Guidance
Gross margin expanded sharply to 51.1%, up from 29.9% in the prior year period, driven by improved product mix and pricing power amid tight NAND supply. Management forecasts gross margins of 65%–67% for the upcoming quarter, while guiding non-GAAP EPS between $12.00 and $14.00, implying more than a 90% sequential increase in earnings power.
4. Institutional Investors Increase Positions
In the third quarter, the Arizona State Retirement System initiated a new stake of 40,752 shares valued at approximately $4.57 million. Several other asset managers also added positions, signaling growing confidence in SanDisk’s long-term growth trajectory and reinforcing the stock’s appeal among large fiduciaries.