Sandisk (SNDK) investor relations material

Executive summary

• Fiscal year 2026 was transformational, with record revenue, gross margin, and EPS, all above guidance, driven by a strategic focus on technology leadership, high-value markets, and operational excellence.

• Datacenter became the fastest-growing and largest end market, representing 38% of the portfolio, up from 12% a year ago.

• Growth was fueled by higher volumes, improved pricing, and a shift toward datacenter and edge customers.

• New Business Models (NBMs) with eight strategic customers now cover over 50% of bits for FY27 and two-thirds for FY28, providing multi-year visibility and $16.5B in financial guarantees.

• Shareholder returns accelerated with $4.5B in stock repurchases and a new $14B buyback authorization, totaling $15.5B remaining.

Financial highlights

• Q4 2026 revenue was $8.97B, up 51% sequentially and 372% year-over-year, with full-year revenue at $20.25B, up 175% year-over-year.

• Q4 non-GAAP gross margin was 84.6%, up from 78.4% prior quarter and 26.4% prior year.

• Q4 non-GAAP operating margin was 79.2%–79.3%, with non-GAAP EPS at $39.25, up from $23.41 prior quarter.

• Adjusted free cash flow for Q4 was $5.04B (56% margin), with $4.76B in cash and equivalents at quarter end.

• Sequential revenue growth was driven one-third by higher volumes and two-thirds by higher pricing.

Outlook and guidance

• Q1 FY27 revenue expected between $10.3B–$10.8B, with non-GAAP gross margin guided at 83–85% and non-GAAP EPS at $44–$46.

• NAND market projected to exceed $300B in 2026 and approach $500B in 2027, with data center share of TAM expanding from 30% in 2025 to 50% in 2026.

• Capital spending to increase year-over-year but remain at ~6% of revenue.