SanDisk Told Investors Margins Will Fall, SNDK Stock Rose 14% Anyway

SanDisk guided investors toward 80% gross margins through fiscal 2030. It earns 84.6% today. The stock rose 13.67% anyway.

Guiding margins lower normally punishes a share price. The reason it did not sits in the company's own recent numbers.

Why SanDisk Stock Rose on a Lower Margin Target

Gross margin is the profit left after production costs. SanDisk reported 84.6% for the quarter ended July 3. Three months earlier it was 78.4%. The new target of roughly 80% sits below both figures.

Now look further back. In the quarter ended March 2025, the same margin was 22.5%. It then climbed to 26.2%, 29.8%, 50.9%, 78.4% and 84.6%. The number almost quadrupled in five quarters.

So the guidance is not really a downgrade. Management is claiming a spike can become permanent. Shares closed at $1,528.11 on Thursday. Investors treated 80% as a floor rather than a ceiling.

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