# Sandisk Stock Q3 2026: Datacenter Sales Jump 61% as Revenue Reaches $11bn
> Sandisk stock Q3 2026: revenue rose 378% to $11.03bn, datacenter sales rose 61% in a quarter and the GAAP gross margin hit 85.0%. SNDK earnings.

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## Facts
- Ticker: SNDK
- QSILabs fair value: $1,972.97 USD
- Price: $1,075.08 (as of 2026-11-02)
- As of: Fiscal Q1 2027 results (quarter ended 2026-10-02, reported 2026-10-29) and Form 10-Q filed 2026-10-30; price as of 2026-11-02 close (before the 8-for-1 split)
- Fiscal period: Q3 2026 (July-September 2026; Sandisk fiscal Q1 2027)
- Published: 2026-11-02
- Updated: 2026-11-02
- Author: QSI Labs Research
- Canonical: https://www.quantitativesuperintelligencelabs.com/research/sandisk-stock-q3-2026-earnings-datacenter-nbm/

## Short answer
Sandisk stock Q3 2026 comes down to a quarter in which AI datacenters became the engine of the business. In the three months to 2 October 2026, Sandisk's first quarter of fiscal 2027 and the calendar third quarter, revenue rose 378% from a year earlier to $11.03bn, datacenter revenue rose 61% from the previous quarter to $4.80bn and the GAAP gross margin was 85.0%. Operating income was $8.78bn, a 79.6% margin, and free cash flow $6.31bn. Sandisk expects revenue of $12.2bn to $12.6bn in the December quarter. The shares still fell 19.2% in the two sessions after the results, to $1,075.08 on 2 November 2026. Our discounted cash flow model values them at $1,972.97 a share, about 1.8 times that price. The gap rests on how long margins near 75% last, so we show below how far the value moves when that changes.

## Key takeaways
- Datacenter is now 43.5% of revenue. Datacenter revenue was $4,802m, up 61% from $2,977m in the June quarter and against $269m a year earlier, when it was 11.7% of revenue. Sandisk said its customers include three US hyperscalers.
- Prices and volumes both rose. Revenue rose 23% from the previous quarter. Chief financial officer Luis Visoso said 60% of that increase came from volume and 40% from higher prices.
- Margins rose again. The GAAP gross margin was 85.0%, against 29.8% a year earlier and 84.6% in the June quarter. GAAP operating income was $8,780m, a 79.6% margin, and non-GAAP earnings per share were $49.51, above guidance of $44 to $46.
- Cash went back to shareholders. Free cash flow was $6,309m and adjusted free cash flow, after joint-venture and customer prepayment items, $5,696m. Sandisk bought back $5.0bn of shares and ended the quarter with $5.1bn of cash and no debt.
- Long-term contracts cover much of the next two years. About 50% of fiscal 2027 bits and two-thirds of fiscal 2028 bits are under long-term agreements that Sandisk calls NBMs. Visoso said: "Our NBM pipeline exceeds our supply throughout the end of the decade."
- A stock split is coming. Each shareholder of record on 9 November 2026 receives seven additional shares for each share held, and trading on a split-adjusted basis starts on 20 November.
- Our value: $1,972.97 a share, against a $1,075.08 close on 2 November 2026, up from $1,033.94 in our previous model. Scenarios range from $888.19, if revenue falls as in a past memory downturn, to $2,322.40; analysts' average target is $2,029.
- What to watch. Whether December-quarter revenue lands in the $12.2bn to $12.6bn range, how many more bits move under NBM contracts, the pace of NAND price rises in 2027 and whether margins hold near the 75% operating margin in Sandisk's long-term model.

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