Sandisk Posts 76% Data-Center Revenue Jump to $440 M, Eyes $4.8 B Q3
Sandisk’s data center revenues surged 76% year-over-year to $440 million in Q2 while non-GAAP gross margin expanded to 51.1% as AI workloads boost demand for low-latency SSDs. The company qualified its fifth-generation PCIe TLC drives with multiple hyperscalers and projects Q3 revenues of $4.40–$4.80 billion with 65–67% margins.
1. AI-Driven Enterprise Storage Shift
AI inference and large-scale data processing are redefining data center storage priorities, shifting competition from cost per gigabyte to low latency, high throughput and endurance. Sandisk’s deepening relationships with hyperscalers and enterprise customers position it to capitalize on performance-driven SSD demand.
2. Q2 Financial Performance
In fiscal Q2, Sandisk’s data center revenues rose 76% year-over-year to $440 million, while non-GAAP gross margin expanded to 51.1% from 32.5% a year earlier. The company qualified its fifth-generation PCIe triple-level cell drives with multiple hyperscalers and continued to leverage its BiCS8 platform for both compute-focused and high-capacity AI storage deployments.
3. Q3 Guidance and Valuation
Sandisk forecasts fiscal Q3 revenues between $4.40 billion and $4.80 billion with non-GAAP gross margins of 65–67%. Analyst consensus for fiscal 2026 revenues stands at $14.13 billion, up 92% year-over-year, while shares have climbed 1,276% over six months and trade at a 4.31× forward price/sales multiple versus the sector’s 2.42×.