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Sandisk shares trade around $648 in overnight action after closing at $539.30, marking a gain of more than 20% following its fiscal Q2 earnings release. The sharp move followed results that exceeded expectations across revenue, margins, and guidance, placing the stock among the strongest post-earnings performers in the technology sector this quarter. Traders reacted quickly as the scale of the earnings beat reset near-term expectations. Revenue Growth Accelerates Across All Segments Sandisk reported second-quarter revenue of $3.03 billion, reflecting 31% sequential growth and a 61% increase from the prior year. Data center revenue reached $440 million, rising 64% quarter over quarter as hyperscalers expanded AI-related storage deployments. Edge revenue climbed to $1.68 billion, while consumer revenue advanced to $907 million, both showing strong sequential momentum. Each segment contributed to the top-line surge, signaling broad-based demand rather than reliance on a single end market. Source: X Margins and Cash Flow Surge Alongside Demand Profitability improved sharply during the quarter. Non-GAAP gross margin expanded to 51.1%, up from 29.9% in the prior quarter, reflecting improved pricing, product mix, and operating leverage. Non-GAAP earnings per share reached $6.20, compared with $1.22 previously. Free cash flow totaled $843 million, representing a 27.9% margin.  Cash and equivalents stood at $1.54 billion, while debt declined to $603 million, leaving Sandisk with a net cash position of $936 million. Guidance Resets Expectations For Q3 Management issued an aggressive outlook for the third quarter. Sandisk expects revenue between $4.4 billion and $4.8 billion, well above prior market assumptions. The company guided for a non-GAAP gross margin of 65% to 67% and non-GAAP EPS between $12 and $14.  These figures suggest continued operating leverage as supply tightens and demand from AI infrastructure remains elevated. Can the company meet that bar again? Markets now treat that question as central. Supply…

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Filed under: News - @ January 30, 2026 8:29 am