Sandisk reported fiscal Q2 revenue of $3.03 billion, a 61% increase year-over-year, driven by a 505% GAAP operating income surge to $1.07 billion and net income of $803 million, up 672% from the prior year’s quarter. The company achieved a GAAP gross margin of 50.9%, improving by 18.6 percentage points versus Q2 2025, while non-GAAP diluted EPS rose to $6.20, a 404% gain. Operating expenses declined 7% sequentially to $476 million on a GAAP basis, reflecting disciplined cost management during rapid top-line expansion.

Demand across all end markets remained robust, with datacenter revenue climbing 76% year-over-year to $440 million, as hyperscale customers accelerated SSD deployments for artificial-intelligence workloads. Edge storage grew 63% to $1.68 billion, fueled by enterprise applications and network infrastructure rollouts, while consumer demand for removable media and flash drives lifted that segment by 52% to $907 million, underscoring broad-based adoption of Sandisk’s NAND-flash portfolio.

For Q3, Sandisk forecasts revenue between $4.4 billion and $4.8 billion, with gross margins targeted at 65.0%–67.0% and non-GAAP EPS of $12.00 to $14.00. Operating expenses are projected at $450 million to $470 million non-GAAP. The company also extended a multi-year NAND supply agreement with a leading cloud provider, ensuring prioritized wafer allocations through 2027. Management cited the deal as critical to aligning capacity with sustained AI-driven demand and preserving price discipline in an otherwise tight memory market.