SNDK 4Q25: Gross Margin Expansion Continues

In the past quarter, SNDK ASP surged by ~35% qoq due to very low supply growth coupled with a significant increase in demand. Furthermore, based on guidance provided for 2026 Q1, overall ASP is expected to rise by 60% qoq, representing another substantial acceleration. SanDisk reported Q4 2025 revenue of $3 billion, beating the consensus of $2.7 billion by 10%. Gross margin reached 51.1%, far exceeding the Street’s estimate of 42.3%, primarily driven by aggressive price hikes. Non-GAAP EPS of $6.20 was far above the Street at $3.55.

SanDisk’s 1Q guidance also significantly outperformed Street expectations. The company’s revenue guidance for Q1 2026 is set between $4.4-4.8 billion, vastly exceeding the Street consensus of $3 billion. Gross margin was guided to a range of 65–67%, well above the Street’s 47.2%. Non-GAAP EPS guidance of $12.00–$14.00 is far above the Street estimate of $5.42.

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