Sandisk delivered a resilient QQ2 2026 performance with a clear step-up in revenue and a notable expansion in profitability, underpinned by strong cash generation and a solid balance sheet. The quarter closed with revenue of $3.025 billion, up from Q1 2026, and a gross margin of 50.94%, driven by favorable product mix and pricing dynamics. Net income was $803 million and diluted EPS stood at $5.15, while EBITDA reached $1.0 billion and operating margin was 35.20%.
Cash flow remained exceptionally strong, with net cash provided by operating activities of $1.019 billion and free cash flow of $0.98 billion. Capital expenditures were modest at $39 million, supporting a robust cash conversion profile. The company finished the period with $1.539 billion in cash and equivalents and a net debt position of -$0.936 billion, highlighting substantial liquidity to fund R&D, strategic initiatives, or potential capital allocation opportunities.
From a balance sheet perspective, Sandisk reported total assets of $12.998 billion and total stockholders’ equity of $10.213 billion. Goodwill and intangible assets stood at $4.995 billion, while long-term debt was modest at $583 million and short-term debt at $20 million. Inventory carried a material balance of $1.97 billion and accounts receivable were $1.337 billion, signaling a healthy asset base to support ongoing operations. While the quarterly results demonstrate strength, management commentary was not included in the provided data, and no formal forward guidance was observed for QQ3 2026. Investors should monitor memory market dynamics, pricing/mix progression, and any upcoming guidance.