Storage giants keep delivering good news! SanDisk's performance and guidance both exceed expectations, causing a 15% surge in stock price after hours.

After the US stock market closed on Thursday, American storage chip manufacturer SanDisk announced its fiscal second quarter 2026 financial results (ending January 2nd), showing both performance and guidance well above market expectations. This highlights the strong demand for storage chips in the artificial intelligence (AI) sector. SanDisk’s stock price surged significantly in after-hours trading.

SanDisk is a globally renowned provider of flash storage solutions, focusing on NAND flash and SSD core markets, firmly ranking in the top tier of global NAND manufacturers, and holding important positions in consumer storage and AI-driven enterprise SSDs.

The financial report shows that SanDisk’s second quarter revenue reached $3.03 billion, a year-over-year increase of 61%; adjusted earnings per share were $6.20, a 404% increase year-over-year.

FactSet analysts previously expected SanDisk’s second quarter revenue to be $2.69 billion, with earnings per share of $3.62.

SanDisk’s second quarter operating profit was $1.065 billion, a 446% increase year-over-year. Non-GAAP operating profit was $1.133 billion, up 386% year-over-year. Net profit was $803 million, a 672% increase. Non-GAAP net profit was $967 million, up 443% year-over-year.

In the second quarter, all of SanDisk’s business segments saw significant growth, with the data center segment performing particularly strongly. Driven by continuous large-scale investments by tech companies in AI computing systems, SanDisk’s data center business revenue reached $440 million, up 64% quarter-over-quarter and 76% year-over-year.

For the third quarter, SanDisk expects adjusted earnings per share of $13 and revenue of $4.6 billion. This forecast is based on its mid-term outlook.

Wall Street analysts previously expected the company’s third quarter revenue to be $2.93 billion, with earnings per share of $5.11.

SanDisk CEO David Goeckeler stated in a press release: “This quarter’s performance highlights our flexibility in optimizing our product portfolio, accelerating enterprise SSD deployment, and strengthening market demand dynamics. Currently, our products are increasingly recognized for powering artificial intelligence and global technology.”

Following this news, SanDisk’s stock price surged over 15% in after-hours trading on Thursday. During regular trading hours, SanDisk’s stock rose 2.2%, closing at $539.30, with an intraday high of $546.75, setting a new record.

Since the beginning of this year, SanDisk’s stock price has increased by 127%. With a 577% rise, the company is the best-performing component stock in the S&P 500 index in 2025.

Since spinning off from Western Digital (WDC) in February 2025, SanDisk’s stock has performed strongly. Its storage chips, driven by robust demand from AI data centers, have become hot commodities in the market.

Recently, as the trend of rising storage chip prices intensifies, major storage chip manufacturers including SK Hynix, Samsung, and Western Digital have announced impressive financial results, making storage concept stocks one of the hottest sectors in the current market.

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(Source: Cailian Press)