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SanDisk shares drop 14% after revenue forecast disappoints
SanDisk reported fiscal Q4 revenue of $8.97 billion and adjusted earnings of $39.25 per share, but its first-quarter fiscal 2027 revenue forecast of $10.3 billion to $10.8 billion fell short of investor expectations.
SanDisk shares fell 14% on Thursday, 6 August, after the memory-chip maker said its revenue outlook disappointed Wall Street. The stock dropped to an intraday low of $1,163.
In its fiscal fourth quarter, SanDisk posted revenue of $8.97 billion, nearly five times higher than the $1.9 billion in the prior-year period, and above the $8.39 billion Wall Street estimate. Adjusted earnings came in at $39.25 per share, beating the $34.96 per share estimate, while net income was $6.9 billion, or $43.97 per share, compared with a year-ago net loss.
LiveMint Markets reported that the quarter benefited from increased spending by cloud and AI hyperscalers including Meta, Amazon, Alphabet, and Microsoft, supporting demand for memory chips used in AI data centers. Looking ahead, SanDisk projected first-quarter fiscal 2027 revenue in the range of $10.3 billion to $10.8 billion, with adjusted earnings per share expected at $44.00 to $46.00.
SanDisk also said it has eight long-term agreements with six customers worth at least $93.9 billion, with a median contract duration of four years, and that it signed five additional agreements since April, reflecting continued demand for its AI-related storage products. The company said the sharp turnaround highlights how enterprise storage has shifted into an AI infrastructure component as firms move to train and deploy large language models and generative AI applications.