Sandisk Drops 7% After Q4 Outlook Misses, Despite $94 Billion Supply Pipeline
Updated
Updated · The Motley Fool · Aug 13
Sandisk Drops 7% After Q4 Outlook Misses, Despite $94 Billion Supply Pipeline
3 articles · Updated · The Motley Fool · Aug 13
Summary
Sandisk shares fell almost 7% after its Aug. 5 fiscal Q4 report, with investors focusing on guidance that missed expectations even after strong results.
Investor caution has been driven by a broader memory-sector selloff, cyclical oversupply fears, rising Chinese competition and doubts about sustained AI infrastructure spending; the Roundhill Memory ETF is down 19% over the past month.
Fiscal 2026 revenue surged 175% to $20.2 billion and adjusted EPS jumped nearly 24-fold to $70.88, while current-quarter guidance calls for $10.3 billion-$10.8 billion in revenue and $45.00 in non-GAAP EPS.
Eight multi-year data-center supply agreements are set to cover more than half of NAND bit shipments in fiscal 2027 and two-thirds in fiscal 2028, with at least $94 billion in revenue locked in at floor prices.
Wall Street still expects fiscal 2027 revenue to rise 141% to nearly $49 billion and EPS to triple to $213.23, with the median 12-month price target implying 69% upside.