SanDisk reported second-quarter revenue of $3.025 billion, up 61% year-over-year, and non-GAAP earnings per share of $6.20, more than doubling the prior-year figure of $1.23 and significantly exceeding the consensus estimate. Non-GAAP gross margin expanded to 51.1%, a 21.2-percentage-point increase from the prior quarter, while operating income climbed 362% sequentially to $1.133 billion. Net income rose 443% year-over-year to $967 million, underscoring robust profitability driven by strong pricing power in NAND products.

SanDisk’s data center business generated $440 million in revenue, up 64% sequentially and 76% year-over-year, as hyperscale cloud providers and AI infrastructure builders accelerated purchases. Consumer segment revenue reached $907 million, a 52% increase from a year earlier, supported by ongoing tight supply of flash memory. Edge storage sales of $1.678 billion grew 63% year-over-year, reflecting broad adoption of SSDs across enterprise and industrial applications.

Management projected third-quarter revenue between $4.4 billion and $4.8 billion, with non-GAAP EPS of $12.00 to $14.00, implying sequential growth of at least 45% at midpoint. Analysts responded by lifting price targets, led by Cantor Fitzgerald’s increase from $550 to $800 alongside an Overweight rating. Bank of America and Raymond James followed, raising their targets to $850 and $725 respectively, citing sustained supply constraints, strong product mix and secular AI-driven demand trends.