Why Sandisk Stock Rocked the Market This Week
Key Points
The veteran storage specialist had quite the knockout second quarter.
It posted triple-digit growth on the bottom line.
- 10 stocks we like better than Sandisk ›
According to data compiled by S&P Global Market Intelligence, Sandisk (NASDAQ: SNDK) was a standout stock over the past five trading days with its nearly 22% price surge. That's what a blowout set of quarterly results will do to a company's shares.
More than a few tailwinds
After market hours, Sandisk published its second quarter of fiscal 2026 figures, and the following day, investors blasted the shares well higher. Revenue for the period was a shade under $3.03 billion, up a mighty 81% year-over-year. It also topped the company's guidance.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
More impressively, net income not in accordance with generally accepted accounting principles (GAAP) increased more than fivefold, surging to $967 million ($6.20 per share) from the year-ago profit of $1.22.
With those numbers, the company obliterated the average analyst estimates. The consensus for revenue was $2.67 billion, and that for non-GAAP (adjusted) net income was $3.49 per share.
The vast increases in Sandisk's fundamentals came from a perfect storm of factors, including the sharp rise in the use of artificial intelligence (AI) capabilities.
In its earnings release, the company quoted CEO David Goeckeler as saying that "This quarter's performance underscores our agility in capitalizing on better product mix, accelerating enterprise [solid-state drive] 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 recognized."
Clear skies ahead
Sandisk also proffered guidance for its current (third) quarter. It anticipates revenue of $4.4 billion to $4.8 billion, translating into adjusted net income of $12 to $14 per share.
This indicates that management is fully counting on the good times continuing to roll. Given the current market conditions, I feel that's entirely realistic. I'd even consider that forecast to be conservative, especially given that the company topped its own expectations for the trailing quarter
Should you buy stock in Sandisk right now?
Before you buy stock in Sandisk, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sandisk wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $448,476!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,180,126!*
Now, it’s worth noting Stock Advisor’s total average return is 945% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of January 30, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
