Sandisk stock was falling 9% ahead of the open Thursday after a disappointing outlook from the memory maker seemed to overshadow strong results in the latest quarter.

Sandisk reported fiscal fourth-quarter adjusted earnings of $39.25 per share on revenue of $8.97 billion. Analysts surveyed by FactSet were expecting earnings of $34.96 per share on revenue of $8.48 billion.

In the same period last year, Sandisk reported earnings of 29 cents per share on revenue of $1.9 billion.

Demand for components such as memory are far outpacing supply as customers buy up the hardware needed to help power artificial intelligence. Massive cloud providers, such as Amazon.com, Meta Platforms, and Alphabet, are spending hundreds of billions of dollars to build data centers.

The dynamic has led hardware makers to boost prices, which has been a major boon for Sandisk.

Sandisk reported fourth-quarter data center revenue of $2.98 billion, ahead of analyst estimates of $2.74 billion.

"We closed fiscal 2026 with a leading technology portfolio, established datacenter as a key growth pillar, and deepened our customer partnerships," CEO David Goeckeler said in the earnings release.

Still, shares were down 9% in premarket trading.

Sandisk said it expects fiscal first-quarter revenue to be between $10.3 billion and $10.8 billion. That's below Wall Street estimates of $10.82 billion.

The company's margin guidance was also disappointing, forecasting gross margins of between 83% and 85% in the current quarter, compared with 84.6% in its fourth quarter.

"We want to get to this kind of boom and bust out of it," CEO David Goeckeler said on the company's earnings call. "And we want to get more consistent and deeper relationships with our customers so we can plan better and they can plan better," he added.

The stock has soared 469% this year and 3,108% over the past 12 months. The rally has left investors looking for knockout financial results and guidance.