Should You Buy Sandisk Stock at About 5 Times Its Guided Earnings?
Does the memory chipmaker's stock price already assume its massive profits won't last?
Sandisk, a flash memory specialist, reported a 23% increase in revenue to $11.0 billion for the period ending Oct. 2, 2026. The company announced an eight-for-one stock split, which will bring shares to about $166 each. After a 13% drop on Oct. 30, Sandisk's stock is now about 51% under its 52-week high. CFO Luis Visoso guided for adjusted earnings per share between $55 and $57 after the split.
Sandisk's stock split is aimed at making shares more accessible, including to employees. Revenue grew 378% year over year in fiscal Q1, with data center revenue increasing 61% sequentially. Pricing drove around 40% of Sandisk's sequential growth, while higher prices added about $800 million to revenue in fiscal Q4. Management forecasts a 12% sequential growth in fiscal second-quarter revenue of $12.2 billion to $12.6 billion.
Sandisk currently trades at about 5 times its annualized guided earnings, reflecting a slowdown in pricing. The company has committed around half of its storage capacity under multiyear customer deals.
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