Sandisk | 8-K: FY2026 Q3 Revenue Beats Estimate at USD 5.95 B

Revenue: As of FY2026 Q3, the actual value is USD 5.95 B, beating the estimate of USD 4.735 B.

EPS: As of FY2026 Q3, the actual value is USD 23.03, beating the estimate of USD 14.178.

EBIT: As of FY2026 Q3, the actual value is USD 4.105 B.

Sandisk Corporation announced financial results for the fiscal third quarter ended April 3, 2026, on April 30, 2026 .

Revenue

Sandisk Corporation reported third quarter revenue of $5.95 billion, representing a 97% sequential increase and a 251% year-over-year (Y/Y) increase from $1.695 billion .

Segment Revenue

• Datacenter: Revenue reached $1,467 million, increasing 233% sequentially from $440 million and 645% Y/Y from $197 million .
• Edge: Revenue was $3,663 million, up 118% sequentially from $1,678 million and 295% Y/Y from $927 million .
• Consumer: Revenue was $820 million, down 10% sequentially from $907 million but up 44% Y/Y from $571 million .

Gross Margin

GAAP gross margin was 78.4%, an increase of 27.5 percentage points (ppt) sequentially from 50.9% and 55.9 ppt Y/Y from 22.5% . Non-GAAP gross margin was also 78.4%, up 27.3 ppt sequentially from 51.1% and 55.7 ppt Y/Y from 22.7% .

Operating Expenses

GAAP operating expenses were $551 million, up 16% sequentially from $476 million, but down 76% Y/Y from $2,263 million . Non-GAAP operating expenses were $448 million, up 8% sequentially from $413 million and up 17% Y/Y from $383 million .

Operating Income

GAAP operating income was $4,111 million, a 286% sequential increase from $1,065 million and a 319% Y/Y increase from -$1,881 million . Non-GAAP operating income was $4,218 million, up 272% sequentially from $1,133 million .

Net Income

GAAP net income was $3,615 million, up 350% sequentially from $803 million and 287% Y/Y from -$1,933 million . Non-GAAP net income was $3,675 million, up 280% sequentially from $967 million and Y/Y from -$43 million .

Cash Flow

• Net cash provided by operating activities: For the three months ended April 3, 2026, it was $3,038 million, compared to $26 million for the three months ended March 28, 2025 . For the nine months ended April 3, 2026, it was $4,545 million, compared to -$10 million for the nine months ended March 28, 2025 .
• Free cash flow: For the three months ended April 3, 2026, it was $2,993 million, compared to -$18 million for the three months ended March 28, 2025 . For the nine months ended April 3, 2026, it was $4,411 million, compared to -$169 million for the nine months ended March 28, 2025 .
• Adjusted free cash flow: For the three months ended April 3, 2026, it was $2,955 million, compared to $220 million for the three months ended March 28, 2025 . For the nine months ended April 3, 2026, it was $4,246 million, compared to $161 million for the nine months ended March 28, 2025 .

Unique Metrics

Sandisk Corporation concluded the fiscal third quarter with three signed New Business Model (NBM) agreements and secured two additional agreements in the fiscal fourth quarter . The company is strategically shifting its focus towards higher-value end markets, particularly Datacenter, and maintains a zero-debt balance sheet and robust cash generation . On April 30, 2026, the Board of Directors approved a $6 billion share repurchase program, exclusive of fees and commissions, which the company expects to fund using operating cash flows .

Outlook for Fiscal Fourth Quarter 2026

Sandisk Corporation projects fourth quarter revenue to be between $7.75 billion and $8.25 billion . Non-GAAP diluted net income per share is anticipated to range from $30.00 to $33.00 .