Quarterly Highlights for Sandisk
For its fiscal 2026 second quarter ending Jan. 2, Sandisk reported adjusted earnings per share of $6.20, up from $1.23 a year earlier, on revenue of $3.025 billion, a 61% year‑over‑year increase.
Both metrics beat analyst forecasts of $3.49 per share and $2.67 billion in revenue.
- Flash volume growth was modest (low single‑digit shipments).
- Average selling price per gigabyte rose in the mid‑30% range.
- Pricing strength driven by tighter NAND supply and a shift to higher‑value enterprise SSDs for AI and cloud workloads.
Looking ahead, Sandisk projects FY2026 Q3 adjusted EPS of $12‑$14 and revenue of $4.4‑$4.8 billion, well above the $4.21 EPS and $2.92 billion analysts expected.
Quarterly Highlights for Western Digital
Western Digital posted adjusted EPS of $2.13 for the same quarter, up from $1.20 a year ago, on revenue of $3.017 billion, a 25% increase.
These results also exceeded expectations of $1.91 per share and $2.92 billion in revenue.
- Cloud revenue: $2.673 billion (+27.5% YoY).
- Client revenue: $176 million (+25.7% YoY).
- Consumer revenue: $168 million (‑2.9% YoY).
For FY2026 Q3, Western Digital forecasts adjusted EPS of $2.30 and revenue of $3.2 billion, surpassing analyst expectations of $1.99 EPS and $2.98 billion.
Drivers of Growth
The strong performance of both companies is tied to accelerating demand for storage in AI‑intensive data centers and cloud services.
- Higher‑value enterprise SSDs command premium pricing.
- Tighter NAND supply constraints boost average selling prices.
- AI workloads increase data throughput, driving larger capacity purchases.
Outlook for FY2026
Both Sandisk and Western Digital expect continued revenue acceleration as AI and cloud adoption expand.
Analysts anticipate further pricing power and volume growth, especially in the enterprise segment, positioning the two firms to maintain earnings momentum through the remainder of FY2026.