Sandisk shares tumble over 10% on pre-market Nasdaq as investors focus on softer guidance; what investors should know

US-based multinational chipmaking firm, Sandisk Corp. shares declined more than 11% during the pre-market trading hours at Nasdaq on Thursday, August 6, as Wall Street investors focused on the company’s softer-than-expected guidance for the upcoming quarter earnings.

MarketWatch data showed that Sandisk shares tumbled over 11% during the pre-market hours to $1,194 apiece ahead of the opening bell on Thursday, in comparison to $1,350.50 apiece at the previous equity market close.

The exchange data also showed that the trading volumes surged to above 670,000, triggering the high volume losses. Nasdaq data showed that Sandisk announced its June quarter (Q4) earnings report after the market hours on Wednesday, August 5.

The chipmaking company follows a July to June reporting year for the financial results.

Why did Sandisk shares drop today?

Sandisk shares declined during the pre-market hours on Wall Street after the company’s forward guidance failed to meet the investors expectations after the Q4 earnings report.

Experts believe that the company is transitioning from an earnings revision story to a focus on a more durable and elongated structural story which is likely to take some time to translate for investors.

“The softer-than-expected F1Q27 guide may weigh on near-term sentiment, results suggest a viable path toward stronger earnings power, dampened cyclicality, and more durable fundamentals via a larger portion of the company's revenue base being contracted out under [new business model agreements],” said JP Morgan analysts cited in a Dow Jones newswire report.

The analysts also said that this structurally improves demand visibility for Sandisk and supply predictability for its customers.

How did Sandisk perform in Q4 earnings?

On August 5, Sandisk reported a 91% sequential growth in net income to $6,903 million in the fourth quarter of 2026, in comparison to $3,615 million in the third quarter of 2026, as per the company filings.

The company’s revenue from core operations 51% to $8,965 million in Q4 2026, compared to $5,950 million in Q3 2026, as per the filing data.

Sandisk’s gross margins surged to 84.6% in the Q4 2026, compared to 78.4% in the previous quarter.

“We closed fiscal 2026 with a leading technology portfolio, established datacenter as a key growth pillar, and deepened our customer partnerships,” said David Goeckeler, Chairman and Chief Executive Officer of Sandisk. "Our technology and products are well positioned to create value for our customers and generate growing and durable free cash flow."

Sandisk share performance

Sandisk shares have delivered more than 3,584% returns to their investors in the last five years, over 3,107% gains in the last one year period, and more than 390% returns on a year-to-date (YTD) basis in 2026, according to Nasdaq data.

The company’s stock has declined 22.5% in the past one month period, but were trading 19% higher over the last five trading sessions, as per the exchange data.

Shares of Sandisk surged to their 52-week high of $2,354.39 apiece, while the 52-week low was at $40.53 apiece. The company’s market capitalisation (m-cap) was at around $200 billion as of the US stock market close on August 5, 2026.