SanDisk released its financial results for the third quarter of fiscal 2026 (ending April 3, 2026). On a Non-GAAP basis, the company posted quarterly revenue of $5.95 billion, representing a 97% quarter-over-quarter increase and a 251% year-over-year increase. The gross profit margin stood at 78.4%, up 27.3 percentage points quarter-over-quarter and 55.7 percentage points year-over-year. Operating profit reached $4.218 billion, surging 272% quarter-over-quarter and an extraordinary 2,108 times year-over-year. Net income amounted to $3.675 billion, jumping 280% quarter-over-quarter and 86.47 times year-over-year.
The quarter’s above-expectation revenue growth was driven by a shift toward higher-value customers (data center revenue up 233% QoQ) and price increases. Bit shipments were flat YoY and down high-teens sequentially, as the company built higher inventory to support strongBicS 8 QLC demand in the fourth quarter Stargate ramp and to prepare for our recently signed new businessmodels. in line with our mid- to high-teens growth model, bit shipments increased 18% fiscal year-to-date.
Sandisk CEO David Goeckeler stated the quarter marked a fundamental turning point for Sandisk. Its technology leadership is enabling a strategic shift toward high-value end markets led by data centers, alongside a new business model built on long-term customer partnerships and firm financial commitments. This transformation will structurally improve profitability and sustainability.
During Q3FY2026, Sandisk signed three New Business Model (NBM) agreements, with two more signed so far in Q4FY2026. The five NBM deals bring total financial commitments to over $11 billion. More than one-third of bits in fiscal 2027 under firm customer commitments represent a fundamental reshaping of its business, with further increases expected as additional agreements close in the coming months.
Revenue by End Markets:
Data Center: $1.467 billion, up 233% QoQ and 645% YoY
Edge Computing: $3.663 billion, up 118% QoQ and 295% YoY
Consumer: $820 million, down 10% QoQ and up 44% YoY
End Markets
The company offers a full product portfolio, including scaled and fast‑growing enterprise SSDs. It is reallocating supply to highest-value opportunities to build new growth pillars.
In datacenter end market, revenue was fueled by strong demand for TLC‑based enterprise SSDs for high-performance computing workloads. Sandisk plans to start shipping QLC Stargate solutions and recognizing revenue in fiscal 2026 Q4, supporting continued growth. TLC and QLC serve distinct, complementary roles as the company tailors its portfolio to evolving customer needs.
Sandisk CEO David Goeckeler noted the data center is the fastest‑growing market, with significant upside driven by fundamental shifts in AI infrastructure demand.
In edge end market, PC and smartphone markets continue moving to premium devices with more on‑device AI capabilities, lifting storage requirements and demand for high‑performance solutions. Sandisk is shifting mix to higher value and prioritizing customers that recognize its technology. The company is also discussing multi‑year NBM agreements with edge customers to improve demand visibility and planning.
In consumer end market, Sandisk launched a new portfolio of portable SSDs in February, targeting faster, higher‑intensity workflows and AI content creation to strengthen consumer engagement.
Regarding PCs and mobile, Goeckeler said current unit declines are in line with expectations. Sandisk sees those flattening out and up slightly in 2027.
Capital Expenditures
For the fiscal quarter, SanDisk's total capital expenditures were $240 million, 4% of revenue. SanDisk indicated that the majority of fiscal 2026 capex supports investment in BiCS8 technology.
Outlook
Looking ahead to fiscal 2026 fourth Quarter (April–June 2026), SanDisk projects Non-GAAP revenue to be between $7.75 billion and $8.25 billion, driven by bit growth and improved pricing. Its Non-GAAP gross margin is expected to range from 79% to 81%, with operating expenses forecast at $480 million to $500 million.
Additionally, in terms of the stock price, SanDisk's stock closed at $1,096.51 on April 30 local time, up 262% from its closing price on the first trading day of the year. Despite the quarterly results and guidance surpassing expectations, the stock fell more than 7% in after-hours trading.
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