SanDisk Strong Earnings Fail to Stop Brutal Stock Pullback

What happened

SanDisk shares fell 5.3% to $1,330 at Thursday's close and lost another 3% after hours, despite quarterly revenue of $11.03 billion and non-GAAP earnings of $49.51 per share beating analyst estimates, helped by storage demand for AI data centers.

Confirmed

Global impact / market context

The drop suggests investors worry strong growth was already priced in after a sharp share rise since the 2025 separation from Western Digital. That reaction can raise the cost of raising new money and make stock-based pay less valuable for employees.

Analyst inference

A wider pullback in technology and semiconductor stocks, following cautious updates from peers including Intel and Amazon, added pressure. When investors sell a whole industry group together, even companies reporting good results can see their shares fall on the same day.

Analyst inference

What to watch

1. SanDisk expects fiscal second-quarter revenue of $12.2 billion to $12.6 billion and gross margin of 84.5% to 85.5%, which means the share of each sales dollar left after direct costs. Proposed
2. The company set an eight-for-one stock split: holders of record on Nov. 9 get seven additional shares, distribution is after the close on Nov. 19, and split-adjusted trading begins Nov. 20. Confirmed
3. Watch whether the stock keeps falling after results beat estimates, because a continued drop would suggest investors are focused on valuation and memory-market concerns rather than reported profit growth. Analyst inference

Evidence

• gurufocus.com