Strong Datacenter Momentum, New Business Agreements, and Expanded Buybacks Position the Company for Continued Growth
Sandisk (SNDK) reported a record fiscal fourth quarter, highlighting the continued strength of AI-driven infrastructure spending and robust demand for high-performance storage solutions. Fourth-quarter revenue reached $8.97 billion, representing a remarkable 51% sequential increase, while GAAP net income surged to $6.90 billion, or $43.97 per diluted share.
Management noted that roughly one-third of the quarter’s revenue growth came from higher shipment volumes, while approximately two-thirds was driven by stronger pricing, reflecting favorable market conditions and increased demand for premium storage products.
For the full fiscal year 2026, Sandisk generated $20.25 billion in revenue, an impressive 175% year-over-year increase. The company’s Datacenter business was the standout performer, with revenue soaring 437%, fueled by accelerating investments in artificial intelligence infrastructure and a growing mix of higher-value enterprise customers.
Beyond its financial performance, Sandisk continued expanding its customer relationships. Since announcing five New Business Model (NBM) agreements during its April earnings report, the company has signed five additional agreements, including three with new customers and two expansions of existing partnerships, further strengthening its long-term revenue pipeline.
The board also demonstrated confidence in the company’s outlook by approving an additional $14 billion share repurchase authorization, increasing the total remaining buyback capacity to $15.5 billion.
Looking ahead, Sandisk expects fiscal first-quarter 2027 revenue between $10.30 billion and $10.80 billion, with projected non-GAAP earnings per share ranging from $44.00 to $46.00. With strong AI-related demand, expanding customer commitments, and significant capital returns, Sandisk appears well-positioned to sustain its exceptional growth trajectory.
