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Sandisk Reports Fiscal Third Quarter 2025 Financial Results

Sandisk Corporation (Nasdaq: SNDK) today reported fiscal third quarter financial results. “I’m pleased with our team’s execution in the first quarter as a standalone company. Sandisk’s innova...

Business Wire

News Summary

  • Third quarter revenue was $1.70 billion, down 10% sequentially and above the guidance range.
  • Third quarter GAAP loss was $1.93 billion ($13.33 loss per share), including a $1.83 billion goodwill impairment charge. Third quarter Non-GAAP loss per share was $0.30.
  • Expect fiscal fourth quarter 2025 revenue to be in the range of $1.75 billion to $1.85 billion.
  • Expect Non-GAAP earnings (loss) per share to be in the range of ($0.10) to $0.15.

MILPITAS, Calif.: Sandisk Corporation (Nasdaq: SNDK) today reported fiscal third quarter financial results.

“I’m pleased with our team’s execution in the first quarter as a standalone company. Sandisk’s innovation was reinforced, with a strong early ramp of BiCS 8, our latest technology engineered to deliver industry-leading performance, power efficiency, and density,” said David Goeckeler, Sandisk CEO. “We have taken actions to reduce supply to match demand and commenced price increases this quarter. Our investment, supply management, and pricing strategies will remain focused on maximizing returns.”

Q3 2025 Financial Highlights

 

GAAP

 

Non-GAAP

($ in millions, except per share amounts)

Q3 2025

 

Q2 2025

 

Q/Q

 

Q3 2025

 

Q2 2025

 

Q/Q

Revenue

$1,695

 

$1,876

 

down 10%

 

$1,695

 

$1,876

 

down 10%

Gross Margin

22.5%

 

32.3%

 

down 9.8 ppt

 

22.7%

 

32.5%

 

down 9.8 ppt

Operating Expenses

$2,263

 

$411

 

up 451%

 

$383

 

$376

 

up 2%

Operating Income (Loss)

$(1,881)

 

$195

 

*

 

$2

 

$233

 

down 99%

Net Income (Loss)

$(1,933)

 

$104

 

*

 

$(43)

 

$178

 

down 124%

Net Income (Loss) Per Share

$(13.33)

 

$0.72

 

*

 

$(0.30)

 

$1.23

 

down 124%

GAAP

 

Non-GAAP

($ in millions, except per share amounts)

Q3 2025

 

Q3 2024

 

Y/Y

 

Q3 2025

 

Q3 2024

 

Y/Y

Revenue

$1,695

 

$1,705

 

down 1%

 

$1,695

 

$1,705

 

down 1%

Gross Margin

22.5%

 

27.2%

 

down 4.7 ppt

 

22.7%

 

27.4%

 

down 4.7 ppt

Operating Expenses

$2,263

 

$398

 

up 469%

 

$383

 

$351

 

up 9%

Operating Income (Loss)

$(1,881)

 

$65

 

*

 

$2

 

$117

 

down 98%

Net Income (Loss)

$(1,933)

 

$27

 

*

 

$(43)

 

$82

 

down 152%

Net Income (Loss) Per Share

$(13.33)

 

$0.19

 

*

 

$(0.30)

 

$0.57

 

down 153%

* Not a meaningful figure

End Market Summary

Revenue ($M)

Q3 2025

 

Q2 2025

 

Q/Q

 

Q3 2024

 

Y/Y

Cloud

$197

 

$250

 

down 21%

 

$97

 

up 103%

Client

927

 

1,028

 

down 10%

 

1,035

 

down 10%

Consumer

571

 

598

 

down 5%

 

573

 

flat

Total Revenue

$1,695

 

$1,876

 

down 10%

 

$1,705

 

down 1%

Additional details can be found within the Company’s earnings presentation, which is accessible online at investor.sandisk.com.

Business Outlook for Fiscal Fourth Quarter of 2025

 

Three Months Ended

 

June 27, 2025

 

GAAP(1)

Non-GAAP(1)

Revenue ($B)

$1.75 - $1.85

$1.75 - $1.85

Gross margin

25.3% - 26.7%

25.5% - 27.0%

Operating expenses ($M)

$440 - $460

$395 - $405

Interest and other expense, net ($M)

$43 - $48

$45 - $50

Tax expense ($M)(2)

N/A

$22 - $25

Diluted earnings (loss) per share

N/A

($0.10) - $0.15

Diluted shares outstanding (in millions)

~ 146

~ 146

____________________

(1) Non-GAAP gross margin guidance excludes stock-based compensation expense and expense for short term incentives granted in connection with the separation, totaling approximately $4 million to $6 million. The Company’s Non-GAAP operating expenses guidance excludes stock-based compensation expense and expense for short term incentives granted in connection with the separation, totaling approximately $45 million to $60 million. The Company’s Non-GAAP interest and other expenses, net guidance excludes the accretion of the present value discount on consideration receivable from the sale of an interest in a subsidiary, totaling approximately $2 million. In the aggregate, Non-GAAP diluted earnings (loss) per share guidance excludes these items totaling $47 million to $64 million. The timing and amount of these charges excluded from Non-GAAP gross margin, Non-GAAP operating expenses, Non-GAAP interest and other expenses, net, and Non-GAAP diluted earnings (loss) per share cannot be further allocated or quantified with certainty. Additionally, the timing and amount of additional charges the Company excludes from its Non-GAAP diluted earnings (loss) per share are dependent on the timing and determination of certain actions and cannot be reasonably predicted. Accordingly, full reconciliations of Non-GAAP gross margin, Non-GAAP operating expenses, Non-GAAP interest and other expenses, net, and Non-GAAP diluted earnings (loss) per share to the most directly comparable GAAP financial measures (gross margin, operating expenses, and diluted earnings (loss) per share, respectively) are not available without unreasonable effort.

(2) Non-GAAP tax expense is determined based on a Non-GAAP pre-tax income or loss. Our estimated Non-GAAP tax expense may differ from our GAAP tax expense (i) due to differences in the tax treatment of items excluded from our Non-GAAP net income or loss; (ii) due to the fact that our GAAP income tax expense or benefit recorded in any interim period is based on an estimated forecasted GAAP tax expense for the full year, excluding loss jurisdictions; and (iii) because our GAAP taxes recorded in any interim period are dependent on the timing and determination of certain GAAP operating expenses.

Basis of Presentation

On February 21, 2025, Sandisk Corporation (the “Company”) completed its separation from Western Digital Corporation (“WDC”) and became a standalone publicly traded company.

The Company’s financial and operating results after the separation are presented on a consolidated basis. For periods prior to the separation, the Company’s historical combined financial statements were prepared on a carve-out basis and were derived from WDC’s consolidated financial statements and accounting records and prepared as if the Company existed on a standalone basis. The financial statements for all periods presented, including the historical results of the Company prior to February 21, 2025, are now referred to as “Condensed Consolidated Financial Statements” and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”).

Investor Communications

The investment community conference call to discuss these results and the Company’s business outlook for the fiscal fourth quarter of 2025 will be broadcast live online today at 1:30 p.m. Pacific/4:30 p.m. Eastern. The live and archived conference call/webcast and the earnings presentation can be accessed online at investor.sandisk.com.

About Sandisk

Sandisk is a leading developer, manufacturer and provider of data storage devices and solutions based on NAND flash technology. With a differentiated innovation engine driving advancements in storage and semiconductor technologies, our broad and ever-expanding portfolio delivers powerful flash storage solutions for everyone from students, gamers and home offices, to the largest enterprises and public clouds to capture, preserve, access and transform an ever-increasing diversity of data. Our solutions include a broad range of solid state drives, embedded products, removable cards, universal serial bus drives, and wafers and components. Learn more about Sandisk at www.Sandisk.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws, including statements regarding expectations for: the Company’s business outlook and operational and financial performance for the fiscal fourth quarter of 2025 and beyond; product developments and innovations; the performance and characteristics of the Company’s products; industry and supply conditions and dynamics; demand and market conditions for our products; and the Company’s capital investment and pricing strategies. These forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward looking statements. The financial results for the Company’s fiscal third quarter ended March 28, 2025 included in this press release represent the most current information available to management. Actual results when disclosed in the Company’s Form 10-Q may differ from these results as a result of the completion of the Company’s financial closing procedures; final adjustments; completion of the review by the Company’s independent registered accounting firm; and other developments that may arise between now and the filing of the Company’s Form 10-Q. Other key risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include: adverse changes in global or regional economic conditions, including the impact of evolving trade policies, tariff regimes and trade wars; volatility in demand for the Company’s products; pricing trends and fluctuations in average selling prices inflation; changes in interest rates and a potential economic recession; future responses to and effects of global health crises; the impact of business and market conditions; the impact of competitive products and pricing; the Company’s development and introduction of products based on new technologies and management of technology transitions; risks associated with strategic initiatives, including restructurings, acquisitions, divestitures, cost saving measures and joint ventures; risks related to product defects; difficulties or delays in manufacturing or other supply chain disruptions; our reliance on strategic relationships with key partners, including Kioxia Corporation; hiring and retention of key employees; the Company’s level of debt and other financial obligations; changes to the Company’s relationships with key customers or consolidation among our customer base; compromise, damage or interruption from cybersecurity incidents or other data system security risks; our reliance on intellectual property; fluctuations in currency exchange rates; actions by competitors; risks associated with compliance with changing legal and regulatory requirements; future material impairments in the value of our goodwill and other long-lived assets; our ability to achieve some or all of the expected benefits of the separation from WDC; and other risks and uncertainties listed in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including the Registration Statement on Form 10, initially filed with the SEC on November 25, 2024, as further amended thereafter and declared effective on January 31, 2025, and the company’s Quarterly Report on Form 10-Q for the quarter ended December 27, 2024, as initially filed with the SEC on March 7, 2025 and amended on March 17, 2025, to which your attention is directed. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update or revise these forward-looking statements to reflect new information or events, except as required by law.

Sandisk and the Sandisk logo are registered trademarks or trademarks of Sandisk Corporation or its affiliates in the United States and/or other countries.

SANDISK CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions; except par value, unaudited)

 

 

March 28,
2025

 

June 28,
2024

ASSETS

Current assets:

 

 

 

Cash and cash equivalents

$

1,507

 

 

$

328

 

Accounts receivable, net

 

979

 

 

 

935

 

Inventories

 

2,160

 

 

 

1,955

 

Income tax receivable

 

53

 

 

 

7

 

Other current assets

 

391

 

 

 

221

 

Notes due from Western Digital Corporation

 

 

 

 

102

 

Total current assets

 

5,090

 

 

 

3,548

 

Property, plant and equipment, net

 

603

 

 

 

791

 

Notes receivable and investments in Flash Ventures

 

662

 

 

 

1,001

 

Goodwill

 

4,997

 

 

 

7,207

 

Deferred tax assets

 

51

 

 

 

96

 

Income tax receivable, non-current

 

79

 

 

 

11

 

Other non-current assets

 

1,478

 

 

 

852

 

Total assets

$

12,960

 

 

$

13,506

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

 

 

 

Accounts payable

$

363

 

 

$

357

 

Accounts payable to related parties

 

395

 

 

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