Sandisk Posts 97% Revenue Leap, Beats EPS by 60%, Secures $42B Deals
In Q3 FY2026, Sandisk delivered $5.95B revenue (+97% sequential, +251% YoY), $23.41 EPS versus $14.62 estimates, and $2.955B free cash flow. The company secured $42B in multi-year supply agreements, lifted enterprise SSD sales 233% sequentially, and guided Q4 revenue of $7.75–8.25B with $30–33 EPS.
1. Q3 FY2026 Results
In Q3 FY2026, Sandisk reported revenue of $5.95 billion, up 97% sequentially and 251% year over year. It generated EPS of $23.41, roughly 60% above analyst projections of $14.62, and free cash flow reached $2.955 billion.
2. Enterprise SSD Segment Expansion
Enterprise SSD revenue jumped 233% sequentially to $1.467 billion, accounting for 25% of total sales compared with 10% in the prior quarter. This surge reflects strong demand from hyperscale data centers driven by AI infrastructure investments.
3. Multi-Year Supply Agreements
The company secured $42 billion in multi-year supply agreements, including $11 billion in minimum guarantees, covering more than one third of expected fiscal 2027 output. These contracts aim to stabilize production planning and revenue visibility beyond cyclic memory markets.
4. Q4 Guidance and Capital Return
Management guided Q4 revenue between $7.75 and $8.25 billion with EPS of $30 to $33, raising the bar for the next quarter. The board approved a $6 billion share buyback and maintains a net cash balance sheet, underscoring confidence in ongoing cash generation.