SanDisk Corp. (SNDK) First Take Very strong quarter, but guidance falls short of most bullish expectations

Equity Research 5 August 2026 | 4:22PM EDT

SanDisk Corp. (SNDK): First Take: Very strong quarter, but guidance falls short of most bullish expectations

Key stock takeaways: We expect the stock to trade lower following a strong quarter James Schneider, Ph.D. | with guidance that was below the Street on revenue, but in line on EPS. We believe Goldman Sachs & Co. LLC investor expectations remained very elevated heading into the call given strong Khalil Fenina pricing expectations, increased AI datacenter adoption for NAND, strong peer | reports; however, these have been somewhat tempered by the significant pullback in Goldman Sachs & Co. LLC

the stock (down 40% from June highs). We expect investors to focus on critical Anmol Makkar | elements of management’s commentary on today’s conference call, including (1) Goldman Sachs & Co. LLC additional details on the company’s newly signed LTAs; (2) color on potential stock repurchases; (3) sustainability of positive pricing momentum; (4) any commentary on Luya You | the potential timing of capacity additions. Goldman Sachs & Co. LLC

Quarterly results above the Street: Sandisk reported revenue of $8.97 bn, above GS at $8.84 bn and the Street (Visible Alpha) at $8.71 bn, while gross margin of 84.6% was in line with GS at 84.3% but above the Street at 83.6%. Non-GAAP EPS of $39.25 was also above GS at $38.16 and the Street at $35.45.

3Q guidance is below the Street on revenue, but in line on EPS. Sandisk guided 3Q below the Street on revenue and gross margin. Revenue was guided to $10.55 bn at the midpoint, which is below GS at $11.65 bn and the Street at $11.15 bn. Gross margin was guided to 84.0%, below GS at 84.7% and the Street at 86.7%. Non-GAAP EPS guidance of $44.00 - $46.00 (midpoint of $45.00) is below GS at $49.95 and in line with the Street at $45.34.

Read-through to our coverage: We expect a negative reaction for MU (Neutral) in our coverage given similar end-market exposures.

Price target and risks: Our 12-month target price of $2,200 is based on a 20X P/E multiple applied to our normalized EPS estimate of $110. Key downside risks include: (1) Long-term structural change in NAND pricing fails to materialize; (2) YMTC continues to iterate on its roadmap; (3) SanDisk fails to gain eSSD traction.

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs SanDisk Corp. (SNDK)

Exhibit 1: SNDK - Variance summary 2Q26 Financials ($ mn, except EPS) Actual GS Street Actual/GS Actual/Street Total Revenue 8,965 8,841 8,713 1.4% 2.9% QoQ 50.7% 49% 46.4% YoY 371.6% 365% 358.4% Gross Margin 84.6% 84.3% 83.6% +27 bps +104 bps Non-GAAP EPS $39.25 $38.16 $35.45 2.9% 10.7%

Source: Company data, Goldman Sachs Global Investment Research, Visible Alpha Consensus Data

Exhibit 2: SNDK - Guidance 3Q26E Financials ($ mn, except EPS) High Low Guidance (midpoint) GS Street Guidance/GS Guidance/Street Total Revenue 10,800 10,300 10,550 11,653 11,148 -9.5% -5.4% QoQ 17.7% 31.8% 27.9% YoY 357.1% 404.9% 383.0% Gross Margin 85.0% 83.0% 84.0% 84.7% 86.7% -74 bps -267 bps Non-GAAP EPS $46.00 $44.00 $45.00 $49.95 $45.34 -9.9% -0.7%

Source: Company data, Goldman Sachs Global Investment Research, Visible Alpha Consensus Data

SNDK 12m Price Target: $2,200.00 Price: $1,427.62 Upside: 54.1%

Buy GS Forecast 6/25 6/26E 6/27E 6/28E Market cap: $212.7bn Revenue ($ mn) 7,355.0 20,124.5 53,717.9 64,403.4 Enterprise value: $203.7bn EBITDA ($ mn) 845.0 12,799.0 43,017.9 47,930.5 3m ADTV: $22.1bn EBIT ($ mn) 689.0 12,555.0 42,749.9 47,630.5 United States EPS ($) Americas Semiconductors & IT P/E (X) Services EV/EBITDA (X) M&A Rank: 3 FCF yield (%) ( Dividend yield (%) 0.0 0.0 0.0 0.0 Net debt/EBITDA (X) 0.4 (0.7) (1.0) (1.7)

3/26 6/26E 9/26E 12/26E EPS ($)

So…