Overview
- Sandisk reported blockbuster fiscal 2026 results with fiscal Q4 revenue of $8.97 billion, an 84.6% gross margin, and about $11.4 billion in net income, driven by dramatic datacenter demand and higher NAND pricing.
- The company’s Q1 revenue guidance midpoint of $10.55 billion came in slightly below analyst consensus and helped trigger a rapid sell-off that left the stock roughly 47% below its June peak.
- Management disclosed eight long-term customer deals that carry $93.9 billion in minimum revenue commitments at floor pricing, giving the company multi-year revenue visibility for a large share of 2027 and 2028 bit production.
- Strong operating cash flow (about $11.7 billion for the year) funded debt repayment and an aggressive buyback program, with the board authorizing an additional $14 billion to bring total remaining repurchase capacity to $15.5 billion.
- Analysts remain largely bullish but caution that NAND capacity additions over the next few years, including from China and shifts by major memory makers toward HBM, could ease the supply squeeze and reduce Sandisk’s pricing power, a development investors should watch next.