Sandisk Corporation

Record Q4 + strong FY26 delivery (beat guidance) - Q4 revenue $8.965B (+51% QoQ, +372% YoY), above prior guidance range $7.75B–$8.25B. - Q4 non-GAAP gross margin 84.6% (vs 78.4% QoQ; guidance 79%–81%), non-GAAP EPS $39.25 (guidance $30–$33). - Drivers of Q4 revenue: about 1/3 from incremental bits, 2/3 from higher pricing. - FY26 revenue $20.248B (+175% YoY); end-market mix: Datacenter $5.153B (+437%), Edge $12.160B (+195%), Consumer $2.935B (+29%).

“Era of Inference” is the core demand thesis (opportunity) - Management argues AI inference is memory-centric and storage-intensive, driving long-term NAND demand (store/retrieve/serve with low latency). - NAND demand anchored by multi-year infrastructure investments and partnership-driven supply planning with hyperscalers. - Strategic platform positioning: BiCS leadership across TLC + QLC, and shipping high-capacity compute for Datacenter plus QLC Stargate platform shipment “for revenue.” - Exit FY26: Datacenter is ~38% of portfolio (vs ~12% a year ago) and is the fastest-growing end market.

New Business Models (NBMs) = major “durability” lever (visibility + margin support) - Signed 8 NBMs with diverse Datacenter and Edge customers (timing: 5 signed deals since April, with 3 closed before quarter end, 2 after). - NBM duration: up to ~5 years, weighted avg >4 years. - Expected NBM coverage: >50% of bits in FY27 and ~2/3 of bits in FY28. - Economics/scale: total expected NBM revenue minimum $93.9B (assuming floor pricing). - Contract protection: remaining performance obligation (RPO) $59.8B at quarter end ($91.1B including the 2 post-quarter deals). - Financial guarantees: customer protection funds/instruments totaling $16.5B (intended to protect Sandisk if purchase obligations aren’t met; largely held via third parties and released over time).