Sandisk's Q1 results and outlook keep analysts bullish

[SanDisk 32Gb Flash Drive]

Shares of Sandisk (SNDK [https://seekingalpha.com/symbol/SNDK]) rose about 1% premarket on Friday after first-quarter results and guidance surpassed estimates, which drew positive views from analysts.

BofA kept its Buy rating on the stock with a $270 price target.

"SNDK reported F1Q rev/EPS above guidance [https://seekingalpha.com/news/4517437-sandisk-soars-as-q1-results-guidance-blow-past-expectations] and guided F2Q above Street expectations. Mgmt [management] noted that demand for NAND products continues to outpace the company’s supply, and SNDK expects this to persist through the end of C26. Importantly, mgmt. noted customers are beginning to seek multi-qtr. volume and pricing commitments, giving SNDK increased visibility into C27 and underscoring the demand for NAND in the DC," said analysts led by Wamsi Mohan.

The analysts noted that as Sandisk ramps data center production through fiscal 2026, the company expects to outgrow the data center market.

The analysts said they see the results and guidance as positive and note that the company is well positioned to ramp production into the inflection of the data center NAND market (SNDK expects C26 to be the first year where data center is the largest market for NAND bits).

"Reit Buy on valuation, undervalued JV assets, eSSD share gains in C26, & long-term potential for industry consolidation," said Mohan and his team.

Mizuho Securities reiterated its Outperform rating and raised the price target on Sandisk's stock to $250 from $215.

"SNDK reported good SepQ rev $2.31B (cons. $2.15B) and guided the DecQ up 13% q/q to $2.6B (ABOVE cons. $2.23B) and GMs [gross margins] up ~12.1ppts q/q to 42% (ABOVE cons 34%) with accelerating AI Server demand driving pricing," said analysts led by Vijay Rakesh.

The analysts noted that key takeaways were that: The company sees share gains versus 2026 NAND industry bits growing 15% year-over-year; and September quarter bit shipments up mid-teens percentage quarter-over-quarter and average selling price, or ASP, up mid-single-digit percentage, with December quarter bits guided up low-single-digit percentage and price up double digit percentage.

Other key takeaways: Data Center, or DC, revenue expected to grow quarter-over-quarter through fiscal 2026 with two cloud service providers, or CSPs, in qualification and five engaged; and 128TB eSSD ramping potentially mid-2026 and 256TB in about 2027.

MORE ON SANDISK

* Sandisk Corporation (SNDK) Q1 2026 Earnings Call Transcript [https://seekingalpha.com/article/4839775-sandisk-corporation-sndk-q1-2026-earnings-call-transcript]
* Sandisk: Stabilizing Flash Prices Are Leading To Gross Margin Rebound [https://seekingalpha.com/article/4830295-sandisk-stabilizing-flash-prices-leading-to-gross-margin-rebound]
* Time To Count Profits - Sandisk Isn't The Next Micron [https://seekingalpha.com/article/4823050-time-to-count-profits-sandisk-isnt-the-next-micron]
* Sandisk soars as Q1 results, guidance blow past expectations [https://seekingalpha.com/news/4517437-sandisk-soars-as-q1-results-guidance-blow-past-expectations]
* Sandisk Corporation Q1 2026 Earnings Preview [https://seekingalpha.com/news/4516088-sandisk-corporation-q1-2026-earnings-preview]