Sandisk (SNDK) closed near $1,395 on Oct. 15, its sixth straight daily decline, still up about 488% this year from $237 at the end of 2025 but roughly 40% below its June 25 peak close of $2,335. The article argues profits matter more: non-GAAP EPS rose from $6.20 in fiscal Q2 2026 to $23.41 in fiscal Q3 and $39.25 in fiscal Q4, while fiscal Q1 2027 guidance of $44 to $46 implies about 15% growth at the midpoint, with pricing driving much of the slowdown. At around $1,395, the stock trades near 19 times the $73.76 GAAP EPS reported for fiscal 2026, and Sandisk generated about $5 billion in adjusted free cash flow in fiscal Q4, spent $4.5 billion on buybacks, and its board later approved another $14 billion. However, memory prices move in cycles, and adjusted EPS was only $2.99 in fiscal 2025. Only about half of output is covered by multiyear New Business Model agreements with eight customers, which carry at least $93.9 billion in revenue at floor prices.
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