Is SanDisk the Next in Line to Crush Wall Street's Earnings Estimates?

"Seagate Technology ( ) reported its fiscal second-quarter 2026 earnings yesterday, and the results beat Wall Street expectations on both revenue and earnings per share. The company brought in $2.83 billion in revenue, topping the consensus estimate of around $2.75 billion. On the bottom line, non-GAAP earnings came in at $3.11 per share, well above the expected $2.83. This strong showing was largely driven by robust demand for high-capacity storage solutions needed for artificial intelligence (AI) applications, such as data centers handling massive AI workloads."

"SanDisk's impressive run reflects several key trends in the market. Its NAND flash memory products are in high demand because of the explosion in AI infrastructure. Data centers powering AI need fast, reliable storage for handling huge amounts of data, and SanDisk's flash-based solutions fit the bill perfectly. This surge has led to a global shortage of memory products, giving companies like SanDisk more pricing power and the ability to charge higher prices."

Seagate reported fiscal Q2 2026 revenue of $2.83 billion, above the $2.75 billion consensus, and non-GAAP EPS of $3.11 versus an expected $2.83. Strong demand for high-capacity storage for AI workloads, particularly in data centers, drove the beat. The Seagate results lifted SanDisk shares nearly 6% ahead of SanDisk's own Q2 earnings report. Since spinning off from Western Digital last February, SanDisk's stock has climbed about 1,725% from post-separation lows. NAND flash demand amid an industry-wide supply shortage has supported higher pricing, strong shipments, and favorable revenue and margin trends; recent SanDisk revenue was $2.31 billion, up 22.6% year over year, with EPS of $1.22 versus a $0.89 consensus.

Read at 24/7 Wall St.