Sandisk Corporation

Revenue for the fourth quarter was $8,965 million, up 51% sequentially and 372% year-over-year, above the prior guide of $7,750 million to $8,250 million. Non-GAAP gross margin was 84.6%, up from 78.4% in the prior quarter and 26.4% in the prior year; non-GAAP EPS was $39.25, up from $23.41 sequentially and $0.29 a year ago. Non-GAAP operating expenses were $484 million, and non-GAAP operating margin was 79.2%. Datacenter revenue was $2,977 million, Edge was $5,432 million, and Consumer was $556 million. For full-year FY26, revenue was $20,248 million, up 175% year-over-year. For Q1 FY27, guidance is revenue of $10.3 billion to $10.8 billion, gross margin of 83% to 85%, operating expenses of $520 million to $540 million, and non-GAAP EPS of $44 to $46. Management also said the NAND market should exceed $300 billion in calendar 2026 and approach $500 billion in calendar 2027, with bits expected to remain on allocation beyond calendar 2027.

David Goeckeler framed FY26 as a turning point, saying Sandisk has redefined the franchise through technology leadership, stronger customer partnerships, and a net cash balance sheet. He emphasized that AI inference is making NAND more central to storage architecture and that Sandisk is positioned to benefit through BiCS 8, enterprise SSDs, Stargate QLC, and future high-bandwidth flash. His tone was highly confident and strategic, repeatedly stressing longer visibility, more durable economics, and stronger shareholder returns.

Luis Visoso highlighted that FY26 was “transformational,” with 5 new NBM agreements since April plus expansions on 2 prior deals, bringing the total to 8 customers. He said the signed NBMs carry a minimum of $93.9 billion of revenue assuming floor pricing, with $59.8 billion of RPO at quarter end and $91.1 billion including post-quarter signings; the agreements also include $16.5 billion of financial guarantees. On the quarter, he cited $7,126 million of operating cash flow, $562 million of gross capex, $5,035 million of adjusted free cash flow, and $4,762 million of cash and equivalents. He also said capex will rise year over year as BiCS 8 and BiCS 10 ramp, but should fall to about 6% of revenue for FY27, while inventory days will stay elevated to support NBMs.

Analysts pressed on whether NBM margins are really around 80% and whether buybacks could become a steady ~$5 billion per quarter; management said the new agreements are around 80% margins and that execution of repurchases will be “very consistent,” while also emphasizing confidence in cash generation. Questions also focused on why Q1 gross margin guides lower despite pricing strength; management said the guide reflects mix, component costs, and prudent assumptions, not a drag from NBMs, and that Q1 should still benefit from both bit growth and modest price increases. Analysts asked about AI memory architectures such as CMX, KV-cache, and HBF; management said these are real opportunities but are still evolving and that Sandisk’s edge comes from staying close to customers. They also discussed consumer softness and supply/demand convergence, with management saying consumer is more transactional and that the company now has over 4 years of visibility with major customers.