Sandisk shares surge 17% after strong Q2 results and bullish outlook

Sandisk shares jumped 17% in after-hours trading after the company reported a sharp rise in second-quarter results and issued a bullish forecast for the current quarter, citing momentum in enterprise demand and an improved product mix.

For the fiscal second quarter ended 2 January 2026, the company posted revenue of $3.03 billion, up 31% from the previous quarter and 61% year-on-year. Gross margin on a GAAP basis rose to 50.9%, up from 29.8% in the prior quarter.

GAAP operating income reached $1.07 billion, with GAAP net income at $803 million. On a non-GAAP basis, operating income was $1.13 billion and net income $967 million. GAAP diluted earnings per share were $5.15, while non-GAAP EPS stood at $6.20.

“This quarter’s performance underscores our agility in capitalising on better product mix, accelerating enterprise SSD deployments, and strengthening market demand dynamics, all at a time when the critical role that our products play in powering AI and the world’s technology is being recognised,” said David Goeckeler, chief executive of Sandisk.

Datacentre revenue totalled $440 million, up 64% sequentially and 76% year-on-year. Edge revenue rose to $1.68 billion, a 21% sequential increase and 63% higher than the same period last year. Consumer revenue reached $907 million, up 39% sequentially and 52% year-on-year.

Related reading

• Microsoft unveils UniRG to improve accuracy in AI-generated radiology reports
• Microsoft urges unified data security as generative AI reshapes risk landscape
• Apple shares edge higher after record iPhone sales boost Q1 results

For the fiscal third quarter, Sandisk guided for GAAP revenue between $4.4 billion and $4.8 billion and GAAP gross margin in the range of 64.9% to 66.9%. Non-GAAP guidance includes gross margin between 65.0% and 67.0% and operating expenses of $450 million to $470 million.

The stronger-than-expected results and aggressive guidance fuelled investor confidence and triggered a sharp rise in the stock after hours.

The Recap

• Sandisk reported $3,025 million in fiscal second-quarter revenue.
• Datacenter revenue rose to $440 million, up 64%.
• Company forecasts revenue of $4.4-$4.8 billion.