Back
SanDisk sees mid-teens PC, smartphone shipment drop, NAND growth returning in 2027

SanDisk sees mid-teens PC, smartphone shipment drop, NAND growth returning in 2027

SanDisk beat quarterly estimates and guided a strong next quarter, while analysts split between concerns over moderating NAND pricing and Bank of America's view that AI demand, enterprise SSDs and supply agreements can sustain earnings.

Fact Check
Two independent sources (Benzinga original article and Yahoo Finance) both confirm the core claims: CEO Goeckeler forecast mid-teens percentage declines in PC and smartphone unit shipments in calendar 2026, with NAND demand/exabyte growth returning as markets stabilize in 2027. Both also confirm SanDisk beat quarterly estimates (Q4 non-GAAP EPS $39.25 vs $34.45 est, revenue $8.97B vs $8.39B est) and issued strong Q1 FY2027 guidance ($10.3-$10.8B revenue). The analyst-split element is consistent with the Jefferies price-target cut noted in the caller-supplied leads and the mixed stock reaction reported.
    Reference: 12
Summary

SanDisk said PC and smartphone unit shipments are expected to fall by the mid-teens this calendar year, though CEO David Goeckeler said higher storage capacity per device and stabilization in both markets next year could help return total NAND demand growth in 2027. The company reported fourth-quarter non-GAAP earnings of $39.25 per share on $8.97 billion of revenue, with gross margin of 84.6%, and guided fiscal 2027 first-quarter revenue to $10.3 billion to $10.8 billion, non-GAAP earnings to $44 to $46 per share and gross margin to 83% to 85%. Analysts diverged after the report: Jefferies cut its price target to $1,750 from $3,000, citing modest September-quarter pricing gains and flatter margin expectations, while Bank of America reiterated a Buy rating and $2,500 target, saying AI-driven storage demand, rising enterprise SSD adoption and longer-term supply agreements could make SanDisk's earnings strength more durable than the market expects. Bank of America also said the stock trades at about 6 times forward earnings versus about 12 times for Micron and sees fiscal 2027 earnings per share reaching about $233.85.

Terms & Concepts
  • NAND: A type of flash memory used in storage products such as solid-state drives and memory cards.
  • Enterprise SSD: A solid-state drive built for business and data-center workloads, where higher adoption can lift storage demand.
  • Forward earnings: A valuation measure based on expected future profit rather than results already reported.