AI storage demand is endless! Sandisk (SNDK.US) releases "crushing" performance guidance, exceeding market expectations by nearly double.

After announcing performance for the second quarter of fiscal year 2026 far exceeding expectations, storage chip manufacturer Sandisk (SNDK.US) saw its stock price soar nearly 15% in after-hours trading on Thursday. The financial report showed that Sandisk's revenue for the quarter was $3.03 billion, a year-on-year increase of 61.2%, surpassing the general expectation of $2.69 billion; earnings per share were $5.15, compared to the general market expectation of $3.54. As of the time of writing, Sandisk rose 14.39% after hours, to $618.88. The company reported an adjusted gross margin of 51.1%, much stronger than the expected 42%. Looking at the performance of various business segments, revenue from data centers surged by 64% to $440 million, edge computing revenue grew by 21% to $1.678 billion, and consumer-level business grew by 39% to $907 million. Looking ahead, Sandisk expects adjusted earnings per share for the third quarter to be between $12 and $14, completely surpassing the general expectation of $5.11. The company also anticipates stronger revenue growth, ranging from $4.4 billion to $4.8 billion. Sandisk CEO David Gleckler said, "This quarter's performance underscores our sensitivity in leveraging a superior product portfolio, accelerating enterprise SSD deployments, and strengthening market demand dynamics. Currently, the critical role that our products play in driving artificial intelligence and global technology is being recognized. Our structural adjustments align supply with attractive sustained demand, enabling us to drive disciplined growth and deliver industry-leading financial performance." Sandisk and Kioxia have extended their joint venture agreement in Yokkaichi, Japan to 2034. This move aims to ensure stable NAND flash memory supply. Sandisk will pay $1.165 billion for long-term supply rights. The Yokkaichi factory is one of the world's important 3D NAND production bases. This extension reflects the confidence of both parties in long-term collaboration in the storage market and the need for supply chain coordination.