SNDK 3Q25: Further Margin Upside Expected

As noted in our prior mid-training article, new model training methodologies are set to drive greater storage demand. Combined with the significant SSD price hikes we’ve highlighted in Substack Chats, Sandisk predictably delivered above-consensus margins in CY3Q25. Furthermore, CY4Q25 guidance also came in significantly above consensus. Against the backdrop of industry supply constraints and surging demand, we expect Sandisk’s margins to continue to expand.

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3Q25 Results & 4Q25 Guidance: Initial price hikes have already driven margin expansion

• 3Q25 results

  • Revenue of $2.31bn above the Street at $2.17bn

  • Gross margin of 29.9% was slightly above the Street at 29.3%

  • Non-GAAP EPS of $1.22 was well above the Street at $0.90

• 4Q25 guidance - Sandisk guided 4Q above the Street on revenue and gross margin.

  • Revenue was guided to $2.60bn at the midpoint, which is above the Street at $2.37bn.

  • Gross margin was guided to 42.0%, well above the Street at 33.5%.

  • Non-GAAP EPS guidance midpoint of $3.20, far above the Street at $1.92

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Demand for NAND products continues to outpace supply, driven by datacenter business