Sandisk Q4 Earnings Preview: 4 Tests For Whether The Margin Boom Can Last

Sandisk Corporation is rated Hold ahead of Q4 earnings, despite strong recent performance and a low 5.7x FY2027 EPS multiple. I focus on four key tests for SNDK: shipment growth vs. pricing, Stargate datacenter ramp, contract coverage for FY2027, and Q1 margin guidance. Q3's outsized results were driven by ASP increases, not shipment growth; SNDK's Q4 must show durable volume and meaningful Stargate contribution. Contracted revenue coverage and margin protection for FY2027 remain critical to justify consensus earnings and current SNDK valuation.