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Sandisk shares fall more than 8% after revenue guidance misses

The company beat earnings and reported more than 60% year over year revenue growth, but its next-quarter revenue outlook at the midpoint landed slightly below analyst expectations.

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Sandisk Corporation shares slid more than 8% in the next day’s pre-market session after the company topped earnings and profit forecasts in its Aug. 5 report, according to MarketBeat Ratings.

The company’s quarterly results showed revenue up more than 60% year over year, with profitability supported by expanding margins tied to booming data center demand. MarketBeat Ratings said the data center business has become Sandisk’s fastest-growing and most important segment, and it now represents a larger portion of revenue than a year ago.

MarketBeat Ratings also highlighted strong cash generation and a new share repurchase program, alongside growing visibility from long-term customer agreements worth tens of billions in future revenue.

Despite the beat, the stock reaction centered on guidance, with MarketBeat Ratings noting that next-quarter revenue guidance fell short of what analysts expected at the midpoint, even though profit guidance came in ahead of expectations. In a market focused on AI-linked stocks, investors appeared especially sensitive to any sign that growth could cool.

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