SanDisk Corp

NASDAQ:SNDK

Revenue Beat: Sandisk reported Q2 revenue of $3.025 billion, up 31% sequentially and 61% year-over-year, significantly above its $2.55–$2.65 billion guidance.

Profitability Surge: Non-GAAP EPS soared to $6.20 from $1.22 last quarter, beating the $3–$3.40 guidance; gross margin rose to 51.1%, far exceeding the guided 41–43%.

AI-Driven Demand: Artificial intelligence is fueling unprecedented demand for NAND, especially in data centers, leading to strong customer engagement and accelerated growth.

Supply Constraints: Demand continues to exceed supply, prompting strategic allocation and prioritization of key customers, with the market expected to remain undersupplied next quarter.

Long-Term Agreements: Sandisk has signed its first long-term supply agreement with a prepayment component and is in discussions for more, aiming for greater demand visibility and pricing stability.

Guidance Raised: Q3 revenue guidance was set higher, at $4.4–$4.8 billion, with gross margin expected to reach 65–67% and non-GAAP EPS forecast at $12–$14.

JV Extension: The Yokkaichi joint venture with Kioxia was extended through 2034, ensuring stable supply and manufacturing for the next decade.

Strong Cash Position: The company ended the quarter with $1.539 billion in cash, $603 million in debt, and generated $843 million in free cash flow.