NEW YORK, July 27, 2026 — Sandisk Corporation (NASDAQ:SNDK) experienced a sharp reversal in trading Monday, with shares falling 10.7% to $1,282.55 by mid-morning after Wall Street earnings-per-share projections exceeded the company's official guidance range.
The stock opened at $1,456.01 and initially climbed to an intraday high of $1,512.94, representing a 5.3% gain from Friday's close. However, the session quickly turned negative, with the price plunging to $1,228.11 before recovering slightly. The 19.8 percentage point swing underscores the market's reaction to the divergence between analyst expectations and management's outlook.
Earnings Expectations
The preliminary consensus estimate for Sandisk's fiscal fourth-quarter adjusted EPS stands at $33.38, which is 38 cents above the upper end of the company's guidance range of $30.00 to $33.00. Revenue projections are also near the top of the range, with consensus at $8.24 billion against guidance of $7.75 billion to $8.25 billion.
This leaves limited room for a straightforward earnings beat. While EPS could exceed the midpoint of guidance, falling short of the consensus would likely disappoint investors who have priced in stronger results.
Market Context
The broader semiconductor sector also faced headwinds, with the PHLX Semiconductor Index dropping 3.9% after earlier climbing 1.1%. Twenty-seven of the index's thirty components were in negative territory. Among Sandisk's peers, Micron Technology (NASDAQ:MU) fell 4.7% to $877.34, while Western Digital Corporation (NASDAQ:WDC) declined 6.8% to $484.57.
Sandisk's decline was 2.3 times steeper than Micron's and 1.6 times greater than Western Digital's. The company's reported price-to-earnings ratio of 44.6x stands roughly 125% higher than Micron's 19.9x, reflecting its premium valuation in the memory chip space.
Fundamental Strength
Despite the market's negative reaction, Sandisk's underlying business remains robust. In the fiscal third quarter, revenue surged 97% sequentially to $5.95 billion, while adjusted earnings per share reached $23.41. Datacenter revenue jumped 233% from the prior quarter to $1.47 billion, highlighting strong demand from cloud and AI infrastructure customers.
By the start of fiscal Q4, Sandisk had finalized five multiyear customer contracts. Chief Executive David Goeckeler described the third quarter as a "fundamental inflection point," noting that the company's new operating model is producing "structurally higher and more durable earnings power."
Analyst Perspectives
Motley Fool analyst Marc Guberti expressed optimism, stating, "Expect a beat-and-raise type of quarter," citing Sandisk's recent earnings beats and robust memory demand. However, a Seeking Alpha column published on July 23 offered a contrasting view, raising concerns about peak-cycle valuations, AI-driven memory compression, and potential demand risks.
Upcoming Events
Sandisk is scheduled to report its fiscal fourth-quarter results on August 5 after the market close, with an earnings call at 4:30 p.m. EDT. The company's Investor Day is set for August 13 at 9 a.m. EDT. Investors will be closely watching whether Sandisk can deliver results that exceed the elevated expectations, or whether the current guidance proves too conservative.
