Sandisk said fiscal third-quarter revenue surged to $6 billion at the end of April, up 251% from a year earlier, as demand for NAND flash memory kept outrunning supply. The company also said adjusted earnings climbed from a loss of $0.30 a share to a profit of $23.41.
The numbers landed alongside a fresh round of long-term supply deals. Sandisk said it signed three new NBM agreements in the quarter and two more after it ended, giving it five contracts with a maximum term of five years. The three agreements signed in fiscal Q3 are worth at least $42 billion and sit in backlog, backed by $11 billion in guarantees managed by third-party financial institutions.
The quarter showed how sharply the business has turned. Data center revenue rose 645% to $1.47 million, Edge revenue increased 295% to $3.7 billion and consumer revenue gained 44% to $820 million. Gross margin widened to 78.4% from 22.5% a year earlier and 50.9% in fiscal Q2, a swing that points to how tight the market has become for high-end memory chips.
Sandisk gave an even stronger forecast for the current quarter, guiding for revenue of $7.75 billion to $8.25 billion, gross margin of 78.9% to 80.9% and adjusted earnings per share of $30 to $33. Management said the new agreements will cover more than one-third of its BiCS production next fiscal year, with both fixed and variable pricing built into the contracts.
The results arrive after a yearslong reset in the memory business. The market collapsed a few years ago, prompting the big three memory makers to cut NAND production and shift toward DRAM, just as AI data centers began soaking up capacity. Sandisk, which has long lived through the industry’s boom-and-bust cycles, is now benefiting from the opposite problem: not too much supply, but too little.
That shift has been reflected in the stock. Sandisk shares were up 422% this year as of publication and traded at seven times fiscal 2027 analyst estimates, a valuation that still leaves room for more surprise if demand holds and pricing stays firm. The company’s AI-driven run has already drawn attention after its addition to the Nasdaq-100, following a stunning move tied to memory demand, as noted in earlier coverage of the stock’s surge.
The next test is whether Sandisk can keep converting tight supply into profits without loosening the market that has made its recent numbers possible. For now, the company is selling into a shortage, and the shortage is doing a lot of the work.