SanDisk — 2026Q3 earnings
reported 2026-08-05
EPS $39.25 vs $34.52 est — beat
next session -6.8% (close 2026-08-05 → 2026-08-06)
Source
Press release ↗Summary
A blowout close to fiscal 2026: Q4 revenue of $8.97 billion rose 51% sequentially and 372% year over year at an 84.6% gross margin with record EPS, all above guidance — with roughly two-thirds of the sequential growth coming from pricing — capping a year in which revenue tripled to $20.25 billion behind a 437% datacenter surge, and the board added a $14 billion buyback. The call's core message was durability through contract structure: the eight New Business Model agreements (five signed since April) now carry a minimum $93.9 billion of expected revenue at floor pricing and cover more than half of FY2027 bits and about two-thirds of FY2028, with datacenter jumping from roughly 12% to 38% of the portfolio in a year. Management expects supply to stay on allocation beyond calendar 2027, and the Q1 FY2027 guide of $10.3-10.8 billion implies the ramp continues.
Earnings call
Earnings call webcast ↗Review
From the report
A blowout close to fiscal 2026: Q4 revenue of $8.97B (up 51% Q/Q, 372% Y/Y) with 84.6% gross margin and record EPS, all above guidance, on a two-thirds-pricing/one-third-volume mix. The full year tripled revenue to $20.25B behind a 437% datacenter surge, five more New Business Model contracts were signed since April, the board added a $14B buyback, and Q1 FY2027 guidance calls for another sequential step-up to $10.3-10.8B.
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Q4 revenue was $8.97B, up 51% sequentially, with GAAP net income of $6.90B ($43.97 diluted EPS); the sequential growth was roughly one-third volume and two-thirds pricing, underscoring how much of the ramp is price-driven. show quote
“Fiscal fourth quarter revenue was $8.97 billion, up 51% sequentially, with GAAP net income reported at $6.90 billion ($43.97 diluted net income per share). Sequential revenue growth came approximately one-third from higher volumes and two-thirds from higher pricing.”
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Fiscal 2026 revenue reached $20.25B, up 175% year-over-year, with GAAP net income of $11.43B ($73.76 diluted EPS), powered by a mix shift to higher-value customers — Datacenter up 437% — plus higher pricing. show quote
“Fiscal year 2026 revenue was $20.25 billion, up 175% year-over-year, with GAAP net income reported at $11.43 billion ($73.76 diluted net income per share). Revenue outperformance was driven by both our mix shift toward higher-value customers, with Datacenter up 437%, and higher pricing.”
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The New Business Model contract base keeps compounding: five additional agreements were signed since the April call — three with new customers and two expanding existing NBMs. show quote
“Since announcing five New Business Model (“NBM”) agreements during our April earnings call, we have signed five additional agreements, including three NBMs with new customers and two deals expanding on previously signed NBMs.”
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Capital return stepped up sharply: the board approved an additional $14B buyback, taking total remaining repurchase authorization to $15.5B. show quote
“Expanded our share repurchase authorization, with Sandisk’s Board of Directors approving an additional $14 billion buyback program, bringing total remaining authorization to $15.5 billion.”
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Guidance implies the ramp continues into fiscal 2027: Q1 revenue of $10.30-10.80B with non-GAAP diluted EPS of $44.00-$46.00, both above the Q4 just reported. show quote
“Expect first quarter 2027 revenue to be in the range of $10.30 billion to $10.80 billion, with expected Non-GAAP diluted net income per share to be in the range of $44.00 to $46.00.”
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From the call
The call's core message was durability of the boom via contract structure: the eight NBMs now carry a minimum $93.9B of expected revenue at floor pricing, cover more than half of FY2027 bits (about two-thirds in FY2028), and management expects supply to stay on allocation beyond calendar 2027 — while datacenter has gone from roughly 12% to 38% of the portfolio in a year.
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Datacenter went from roughly 12% of bits a year ago to 38% of the portfolio exiting fiscal 2026, and is now the fastest-growing end market. show quote
“A year ago, data center represented roughly 12% of our bits. Exiting fiscal year 2026, it represents 38% of our portfolio and is our fastest-growing end market.”
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CFO Luis Visoso quantified the NBM book for the first time at this scale: a minimum of $93.9B of total expected revenue across all signed NBMs even at floor pricing, with actual revenue expected above that. show quote
“The total expected revenue from all our NBMs we have signed is a minimum of $93.9 billion, assuming floor pricing. We believe actual revenue will be above that minimum.”
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NBMs are becoming the dominant way Sandisk sells: more than 50% of fiscal 2027 bits and approximately two-thirds of fiscal 2028 bits are already committed under these agreements. show quote
“We expect our NBMs to represent more than 50% of our bits in fiscal year 2027 and approximately 2/3 of our bits in fiscal year 2028.”
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Management framed the supply-demand imbalance as persistent, expecting bits to remain on allocation beyond calendar 2027. show quote
“Demand from our customers is growing faster than our supply. We therefore expect bits to remain on allocation beyond calendar year 2027.”
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as of 2026-08-10