SanDisk Corp. (SNDK) shares are plummeting 10.03% in pre-market trading on Friday, extending the 9.38% drop from after-hours trading on Thursday. The sharp decline comes despite the company reporting better-than-expected earnings and revenue for its fiscal fourth quarter of 2025. SanDisk posted non-GAAP earnings of $0.29 per share, significantly surpassing the analyst consensus estimate of $0.04, while revenue rose to $1.901 billion, beating expectations of $1.813 billion.

The sell-off appears to be primarily driven by SanDisk's weaker-than-expected guidance for the upcoming quarter. For Q1, the company forecasts non-GAAP earnings per share between $0.70 and $0.90 on revenue of $2.1 billion to $2.2 billion. While the revenue projection exceeds analyst expectations of $2 billion, the earnings guidance suggests potential challenges ahead, likely contributing to investor concerns.

Investors seem particularly worried about the sharp year-over-year decline in earnings, as the reported $0.29 per share for Q4 2025 marks a substantial decrease from $1.24 per share in the same quarter a year ago. This decline, coupled with the cautious guidance, has sparked concerns about SanDisk's profitability and growth prospects in the near term, leading to the significant pre-market sell-off despite the company's ability to beat analyst expectations in the most recent quarter.