Sandisk Corporation stock research
FY2026 Q2
Sandisk (SNDK) Gross Margin — Quarter Ended Jan 2, 2026
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year, while cost of revenue declined sequentially but increased year over year. Gross margin improved significantly versus both periods, reflecting a stronger relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Jan 2, 2026 · FY2026 Q2
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year, while cost of revenue declined sequentially but increased year over year. Gross margin improved significantly versus both periods, reflecting a stronger relationship between revenue and cost of revenue.
- The most observable margin driver is the reduction in cost of revenue relative to revenue, as cost of revenue decreased sequentially while revenue increased, leading to a higher gross profit and gross margin.
- Compared to the immediately preceding quarter, gross margin improved from a lower level, and compared to the same quarter one year earlier, gross margin also strengthened. Revenue and gross profit were higher in both comparisons, while cost of revenue was lower sequentially but higher year over year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
50.9%
Gross profit
$1.5B
Revenue
$3.0B
Cost of revenue
$1.5B
Quarter-over-quarter change
+21.2 pts
Year-over-year change
+18.6 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 |
|---|---|---|---|---|
| Mar 28, 2025 | $1.7B | $382.0M | $1.3B | 22.5% |
| Jun 27, 2025 | $1.9B | $498.0M | $1.4B | 26.2% |
| Oct 3, 2025 | $2.3B | $687.0M | $1.6B | 29.8% |
| Jan 2, 2026 | $3.0B | $1.5B | $1.5B | 50.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 3, 2025
+21.2 pts
Year-over-year change
Dec 27, 2024
+18.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the reduction in cost of revenue relative to revenue, as cost of revenue decreased sequentially while revenue increased, leading to a higher gross profit and gross margin.
Compared to the immediately preceding quarter, gross margin improved from a lower level, and compared to the same quarter one year earlier, gross margin also strengthened. Revenue and gross profit were higher in both comparisons, while cost of revenue was lower sequentially but higher year over year.
Monitor the trajectory of cost of revenue in upcoming quarters, as its sequential decline was a key factor in the margin improvement.