Sandisk Corp Earnings Summary — Q3 2026

• Revenue surged 251% YoY to $5.95B, representing a massive acceleration in sales volume or pricing power.
• Operating margin reached a record 69.1%, a drastic turnaround from the -111% margin in the same quarter last year.
• Net income of $3.62B marks a full recovery from fiscal 2025's catastrophic losses.
• Free Cash Flow hit $2.99B, a 11,411% increase over the $26M generated in the prior year's quarter.
• Diluted EPS reached $23.03, reflecting a total reversal from the $13.33 loss per share in Q3 2025.
• Gross margins expanded to 78.4%, illustrating extreme operational leverage as revenue scaled.
• Operating expenses remained relatively contained at $551M despite the massive jump in top-line activity.

Management commentary notes a historical failure to align cost structures in 2025, but the current quarterly results suggest a successful, aggressive shift toward high-margin revenue streams.

Improving

The company has transitioned from a structural loss-maker in 2025 with $1.6B in annual losses to generating over $3.6B in profit in a single quarter, indicating a massive cyclical or structural turnaround.

The outlook has shifted from insolvency risk to extreme profitability. With quarterly FCF near $3B, the company is now exceptionally well-capitalized to handle future commodity volatility.