Sandisk slumps as soft gross margin guide offsets Q4 beat, upbeat revenue outlook

Published 15/08/2025, 09:18

Investing.com -- Sandisk reported Thursday guidance for the current quarter that beat short of Wall Street expectations following better-than-expected fiscal Q4 results, however, the stock fell in extended trading on soft gross margin guidance. 

SanDisk Corporation (NASDAQ:SNDK) slumped around 10% in after-hours (AH) trading following the report.

For the three months ended June 27, Sandisk reported adjusted diluted earnings per share of $0.29 on revenue of $1.90 billion, beating analyst estimates of $0.03 and $1.83B, respectively.

Q4 gross margin was 26.4%, matching expectations and rising 370 bps sequentially.

For Q1, the company forecast non-GAAP EPS in the range of $0.70 to $0.90, compared to analyst estimates of $0.79. Revenue was expected to be in the range of $2.10 billion to $2.20 billion, above the consensus projection of $1.98B. 

The September-quarter margin is guided to 29%, below the 30.2% consensus, up 260 bps sequentially, with underutilization charges and factory startup costs partly offset by pricing gains.

The NAND market is seen staying in undersupply through calendar 2026, while 256TB NVMe eSSDs are now sampling and first HBF controllers are on track for calendar 2027 sampling.

"With SepQ GM guide soft on i) underutilization and ii) start-up costs, SNDK shares are down ~10% in AH - though we believe fears are overdone and are buyers, as NAND outlook is positive with supply cuts and pricing," Mizuho analysts commented. 

(Additional reporting by Vahid Karaahemetovic.)

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