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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.