Sandisk recorded a jump in profit and revenue in its fiscal second quarter, blowing past both Wall Street expectations and its own guidance as growing artificial-intelligence adoption drove demand up.
The data storage technology company on Thursday posted a profit of $803 million, or $5.15 a share, compared with a profit of $104 million, or 72 cents a share, a year earlier.
Stripping out certain one-time items, adjusted earnings were $6.20 a share, ahead of the $3.62 a share expected by analysts, according to FactSet.
The company had guided for adjusted earnings between $3.00 and $3.40 a share.
Revenue jumped to $3.03 billion, compared with $1.88 billion in the prior-year period. Analysts were expecting $2.69 billion in revenue, and Sandisk had guided for revenue between $2.55 billion and $2.65 billion.
Sandisk shares jumped 13% to $608 in after-hours trading after closing at $539.30. The stock has more than doubled since the start of the year.
The company said data-center revenues rose 64% compared to the first quarter as technology companies deploying AI at scale fueled demand.
"This quarter's performance underscores our agility in capitalizing on better product mix, accelerating enterprise SSD deployments, and strengthening market demand dynamics, all at a time when the critical role that our products play in powering AI and the world's technology is being recognized," Chief Executive Officer David Goeckeler said.
For its current third quarter, Sandisk is projecting revenue between $4.4 billion and $4.8 billion and adjusted earnings between $12 and $14 a share. That's well above analysts projections for revenue of $2.93 billion and adjusted earnings of $5.11.
It expects adjusted earnings of between $12.00 and $14.00 a share.
The company also announced Wednesday that it had extended its joint venture with the Japanese computer memory technology company Kioxia through 2034.
The NAND research and manufacturing joint venture, based at Kioxia's Yokkaichi Plant, was originally set to expire at the end of 2029. As part of the extension, Sandisk will pay Kioxia nearly $1.17 billion for manufacturing services and supply in installments between 2026 and 2029.
Goeckeler said the agreement would help both companies capitalize on an NAND market expected to reach $150 billion by 2026.
