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SanDisk reports quarterly revenue surge and expects gross margin expansion amid rising memory ASPs
Thursday, January 29, 2026 at 10:41 PM
SanDisk reported strong quarterly results with revenue of $3.025 billion, exceeding guidance. Bit shipments grew in the low single digits while average selling price per gigabyte increased by the mid-30s percent. The company expects next quarter revenue to reach $4.4 billion to $4.8 billion with significantly higher gross margins, despite an anticipated mid-single digit decline in bit shipments. Long-term annual bit growth remains targeted in the mid-to-high teens.
Context
SanDisk reported a significant quarterly revenue surge for the period ending December 2025, reaching $3.025 billion, a 61% year-over-year increase. This performance comfortably exceeded the company's guidance, fueled by a mid-30s % jump in average selling prices (ASPs) as supply-demand imbalances in the NAND flash market intensified. Gross margins expanded to 51.1%, far outstripping the anticipated 41-43% range, as the company—recently separated from Western Digital—prioritized high-capacity enterprise solutions to meet voracious AI-driven data center demand.
Looking ahead, SanDisk issued aggressive guidance for the quarter ending March 2026, projecting revenue between $4.4 billion and $4.8 billion with gross margins reaching as high as 67%. This expected expansion comes despite an anticipated mid-single-digit decline in bit shipments, signaling that pricing power remains the primary driver of profitability. The broader semiconductor supply chain is currently defined by a strategic shift in manufacturing capacity toward high-margin AI infrastructure, which continues to support a robust upward pricing cycle for the storage industry.
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