SanDisk Corp. (NASDAQ:SNDK) expects PC and smartphone shipments to decline sharply in 2026, but CEO David Goeckeler said rising storage capacity and market stabilization next year could support renewed NAND demand.
SanDisk Sees PC and Smartphone Shipments Falling
On Wednesday, during SanDisk’s fourth-quarter earnings call, Goeckeler said the company expects unit shipments for both PCs and smartphones to decline by the "mid-teens" this calendar year as the consumer technology markets adjust.
Still, he described both as important long-term markets and highlighted the broad range of industries served by NAND flash memory.
"Smartphones, PC is very, very important," Goeckeler said. "There’s no doubt those markets are adjusting this calendar year."
The expected decline in device shipments could weigh on demand for NAND storage, which is used in smartphones, PCs and other electronic products.
However, SanDisk expects increasing storage capacity per device to partly offset the impact of lower unit sales.
Rising Storage Capacity Could Support NAND Demand
Goeckeler said average storage capacity in smartphones is expected to increase by the mid-teens percentage range this year, even as smartphone shipments decline. Average storage capacity in PCs, meanwhile, is expected to remain relatively flat.
The trend suggests consumers and device makers may continue to shift toward products with larger storage configurations, helping sustain demand for NAND even as fewer devices are sold.
SanDisk Expects NAND Growth to Return in 2027
Looking ahead, Goeckeler said SanDisk expects PC and smartphone unit shipments to stabilize next year. At the same time, average storage capacity in both markets is expected to rise.
That combination could drive renewed growth in total NAND storage demand, measured in exabytes.
"We see the market adjusting this year and then next year return to overall exabyte growth across both," Goeckeler said.
Goeckeler added that the industry’s adjustment is occurring "pretty quickly," signaling that SanDisk sees the current weakness as a transition rather than a prolonged decline.
SanDisk Beats Q4 Earnings, Raises Q1 Outlook
SanDisk reported fourth-quarter non-GAAP earnings of $39.25 per share, topping analysts’ estimate of $34.45 by nearly 14%.
Revenue climbed to $8.97 billion, beating the consensus estimate of $8.39 billion and surging from $1.9 billion a year earlier.
For the first quarter of fiscal 2027, SanDisk expects revenue in the range of $10.3 billion to $10.8 billion, driven by sequential growth in both bit shipments and pricing.
The company also forecast first-quarter non-GAAP earnings of $44 to $46 per share, based on approximately 155 million fully diluted shares outstanding.
Price Action: SanDisk shares fell 5.4% to close at $1,350.50 on Wednesday and declined another 7.96% to $1,243.00 in after-hours trading, according to Benzinga Pro.
According to Benzinga Edge Rankings, SanDisk ranks in the 99th percentile for Momentum. While the stock is under near-term pressure, its medium- and long-term price trends remain firmly positive.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: TK Kurikawa on Shutterstock.com
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