Sandisk Corporation stock research
FY2025 Q3
Sandisk (SNDK) Gross Margin — Quarter Ended Mar 28, 2025
Revenue was unchanged from a year earlier, but gross profit and gross margin both declined compared to the same quarter last year. The decrease in gross margin was driven by a higher cost of revenue relative to revenue, as gross profit fell while revenue remained stable.
Gross margin takeaway
Quarter ended Mar 28, 2025 · FY2025 Q3
Revenue was unchanged from a year earlier, but gross profit and gross margin both declined compared to the same quarter last year. The decrease in gross margin was driven by a higher cost of revenue relative to revenue, as gross profit fell while revenue remained stable.
- Gross margin weakened sequentially, falling from the prior quarter as revenue decreased while cost of revenue stayed at the same level, causing gross profit to drop. The year-over-year comparison also shows a lower gross margin, with gross profit declining despite revenue being unchanged.
- Compared to the immediately preceding quarter, revenue was lower, cost of revenue was unchanged, and gross profit was lower, resulting in a weakened gross margin. Versus the same quarter one year earlier, revenue was stable, cost of revenue was higher, and gross profit was lower, leading to a lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
22.5%
Gross profit
$382.0M
Revenue
$1.7B
Cost of revenue
$1.3B
Quarter-over-quarter change
-9.8 pts
Year-over-year change
-4.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 28, 2024 | $1.8B | $636.0M | $1.1B | 36.1% |
| Sep 27, 2024 | $1.9B | $726.0M | $1.2B | 38.6% |
| Dec 27, 2024 | $1.9B | $606.0M | $1.3B | 32.3% |
| Mar 28, 2025 | $1.7B | $382.0M | $1.3B | 22.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 27, 2024
-9.8 pts
Year-over-year change
Mar 29, 2024
-4.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin weakened sequentially, falling from the prior quarter as revenue decreased while cost of revenue stayed at the same level, causing gross profit to drop. The year-over-year comparison also shows a lower gross margin, with gross profit declining despite revenue being unchanged.
Compared to the immediately preceding quarter, revenue was lower, cost of revenue was unchanged, and gross profit was lower, resulting in a weakened gross margin. Versus the same quarter one year earlier, revenue was stable, cost of revenue was higher, and gross profit was lower, leading to a lower gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as it remained elevated compared to the prior year and unchanged sequentially despite lower revenue.