Sandisk reported fiscal second-quarter 2026 revenue of $3.03 billion, up 61% year-over-year and significantly above the $2.67 billion analyst consensus. Non-GAAP diluted EPS came in at $6.20, more than doubling the expected $2.94. The company also issued very strong guidance for the third quarter, projecting revenue of $4.6 billion at the midpoint.

Key Highlights

  • Datacenter revenue showed significant acceleration, growing 64% sequentially and 76% year-over-year to $440 million, driven by demand from AI infrastructure builders.
  • The company guided for substantial sequential growth in Q3, with revenue expected between $4.4 billion and $4.8 billion and Non-GAAP EPS projected to be in the range of $12.00 to $14.00.
  • Non-GAAP gross margin expanded dramatically to 51.1%, up from 29.9% in the prior quarter and 32.5% in the same quarter last year, indicating strong pricing power.