Sandisk Corporation

Blowout Q4 and record fiscal year performance (good / surprising) - Q4 FY26 revenue: $8.965B, +51% sequential and +372% YoY, above prior guidance ($7.75B–$8.25B). - Profitability: Non-GAAP gross margin 84.6% (vs 78.4% prior quarter; 26.4% YoY) and Non-GAAP EPS $39.25 (vs $23.41 prior quarter). - Shareholder returns: $4.5B share repurchased during the quarter. - Portfolio shift: Datacenter vs Edge skew favored by AI inference demand; Consumer down.

Datacenter becomes the core growth engine; AI “Era of Inference” thesis (opportunity) - Company frames NAND demand as being reshaped by AI inference: memory-centric, storage-intensive workflows drive high-capacity enterprise SSDs demand. - Datacenter revenue: $2.977B in Q4 (+103% QoQ); Edge revenue: $5.432B (+48% QoQ). - FY26 mix change: Datacenter rose from ~12% of bits (a year ago) to ~38% exiting FY26; management calls Datacenter its fastest-growing end market. - QLC now shipping for revenue: Began shipping QLC “Stargate” platform, expanding to a fuller portfolio across compute-heavy and high-capacity AI data lake needs.

New Business Models (NBMs) = stronger durability and visibility (good / key strategic update) - Since April, signed 5 additional NBMs (3 new customers, 2 expansions) → 8 Datacenter/Edge customers total. - Duration: up to ~5 years with weighted avg >4 years; NBMs expected to be >50% of bits in FY27 and ~2/3 of bits in FY28. - Economics & margin: management expects ~80% gross margin range for NBMs (not a single-point guarantee; upside possible if prices trend higher). - Visibility metrics: - Total expected NBM revenue minimum: $93.9B (assumes floor pricing). - RPO (remaining performance obligation): $59.8B at quarter end; would be $91.1B including 2 deals signed after quarter end. - Customer commitment protection: $16.5B in financial guarantees/deposits (mostly held by third-party financial institutions; intended to protect Sandisk if purchase obligations aren’t met).