المنشور

Hook: In tech this earnings season, beating estimates isn't enough—you have to beat expectations. That was the story for SanDisk and Western Digital, both of which traded lower after hours despite delivering strong quarterly results. SanDisk beat on revenue, gross margin, and EPS, but investors were looking for even more after the stock's strong run. Third-quarter revenue guidance came in just shy of Street expectations, while EPS guidance was largely in line, prompting some profit-taking. The more important takeaway, however, is that SanDisk has secured multi-year customer supply agreements covering more than 50% of FY27 and 65% of FY28 planned bit production at floor pricing. That provides much better visibility into NAND pricing and supports continued share buybacks. Western Digital also posted a clean beat, with revenue, margins, and EPS all ahead of expectations, and guided next quarter above consensus. Even so, the stock sold off because the guidance didn't meaningfully raise the bar in an environment where investors were already expecting exceptionally strong HDD pricing and margins. There were also some concerns around softer exabyte growth as the company manages its 40TB ePMR ramp and HAMR qualification. The bottom line: this wasn't a bad quarter for either company—it was a case of "good wasn't good enough." Fundamentals across NAND and HDD remain healthy, but with expectations running so high, anything short of a decisive upside surprise was bound to disappoint. #DailyOrbit