Sandisk (SNDK) Company Report

SanDisk is experiencing a dynamic market where demand prioritizes supply over price, indicating a market restructuring rather than a supercycle.
The data center market is projected to become the largest NAND consumer by 2026, with exabyte growth in the 40s for that year, significantly driven by AI applications.
The company's BiCS8 technology constituted 15% of its portfolio last quarter and is expected to reach 40-50% by the end of the fiscal year. SanDisk is also developing High Bandwidth Flash (HBF) for AI inference, with memory die expected in late 2026 and controllers in early 2027.
SanDisk aims for a 35% through-cycle gross margin and is committed to supplying the market with mid-teens % growth, while being open to longer-term supply agreements with customers.
SanDisk is prudently managing its capital return strategy, having reduced its Target Operating Balance (TOB) from $2 billion to $1.3 billion last quarter.

6 days ago

Transcript

Sandisk Discusses Dynamic NAND Market, Technology Roadmap, and Capital Strategy

SNDK

New Projects/Investments

Guidance Update

Debt Issuance

Sandisk observes a dynamic NAND market where demand prioritizes supply over price, driven by a structural change post-2023 downturn and the data center market becoming the largest NAND consumer by 2026 with projected 40%+ growth.
The company aims for a 35% through-cycle gross margin but acknowledges the need to achieve higher to generate investor returns.
Sandisk is committed to mid-teens % annual growth in supply, noting that significant capacity expansion would require long-term demand conviction and customer commitment.
Sandisk is actively ramping its BiCS8 technology, which comprised 15% of its portfolio last quarter and is expected to be the predominant node (40%-50%) by fiscal year-end. They are also developing HBF for AI architectures, with memory die anticipated in late 2026 and controllers in early 2027.
Regarding capital allocation, Sandisk is prudently managing its debt, having reduced its TLB from $2 billion to $1.3 billion last quarter.

6 days ago

Transcript

SanDisk Highlights Structural Market Changes and Product Roadmap

SNDK

New Projects/Investments

Guidance Update

Revenue Acceleration/Inflection

SanDisk reports a dynamic market where demand prioritizes supply over price, with a structural shift occurring post-2023 downturn. The data center market is projected to become the largest NAND consumer by 2026, with exabyte growth forecasts for 2026 increasing to the 40s from low-to-mid 20s.
The company aims for a 35% through-cycle gross margin but expects to perform above this target, noting that market dynamics are changing.
SanDisk is progressing with its BiCS8 technology transition, which constituted 15% of its portfolio last quarter and is expected to be the predominant node (40-50%) by the end of the fiscal year.
SanDisk is developing High Bandwidth Flash (HBF) for AI architectures, with the memory die expected in late 2026 and the controller in early 2027.
The company is prudently managing its capital, having reduced its Term Out Borrowing (TOB) to $1.3 billion last quarter from an initial $2 billion.

6 days ago

Transcript

SanDisk Discusses NAND Market Strategy, Financial Progress, and Enterprise/AI Product Development

SNDK

New Projects/Investments

Guidance Update

Revenue Acceleration/Inflection

SanDisk is managing NAND supply for a mid-teens growth rate, deliberately undershipping to maximize margins, and expects the market to be undersupplied through the end of 2026.
The company reported a gross margin of 29.9% last quarter, with a through-cycle target of 35%. They paid down $500 million of Term Loan B and reduced net debt, now holding $91 million in cash.
SanDisk is advancing in the enterprise SSD market, with its TLC product contributing to 26% sequential growth in enterprise SSD. Its new QLC-based "Stargate" controller is entering qualification with two hyperscalers, with a third planned for 2026.
The company is developing High Bandwidth Flash, optimized for AI inference applications, with memory anticipated by end of 2025 and an initial system by early 2027.

Dec 2, 2025, 11:15 PM

Transcript

SanDisk Discusses NAND Market Strategy, Data Center Growth, and High Bandwidth Flash Development

SNDK

New Projects/Investments

Revenue Acceleration/Inflection

SanDisk's CEO, David Goeckeler, outlined the company's strategy to manage NAND supply for a mid-teens growth rate, moving away from past oversupply issues, and is investing billions of dollars annually to support this growth.
The company is making significant progress in the enterprise data center market, with its new Stargate program controller for storage class enterprise SSDs entering qualification with two hyperscalers and a third planned for 2026.
SanDisk is developing High Bandwidth Flash (HBF), optimized for bandwidth and durability, particularly for AI inference use cases, with initial systems targeted for early 2027.
CFO Luis Visoso noted the company paid down $500 million of its Term Loan B and is focused on generating cash, with plans to return cash to investors after evaluating options.

Dec 2, 2025, 11:15 PM

Transcript

Sandisk Discusses NAND Market Strategy, Data Center Progress, and Financials at UBS Conference

SNDK

New Projects/Investments

Debt Issuance

Revenue Acceleration/Inflection

Sandisk is strategically managing NAND supply for a mid-teens growth rate, investing billions annually, and expects a more balanced supply-demand equilibrium in the market.
The company is advancing its enterprise SSD strategy, with its new storage class enterprise SSD controller (Stargate program) entering qualification with two hyperscalers and a third expected in 2026.
Sandisk is developing High Bandwidth Flash for AI inference applications, with initial system availability targeted for early 2027.
The company has paid down $500 million of its Term Loan B and is focused on cash generation, with future plans to return cash to investors under evaluation.

Dec 2, 2025, 11:15 PM

Transcript

Sandisk Reports Strong Q1 Fiscal Year 2026 Results

SNDK

Earnings

Revenue Acceleration/Inflection

Guidance Update

Sandisk delivered Q1 Fiscal Year 2026 revenue of $2.3 billion, marking a 21% sequential increase, with non-GAAP earnings per share of $1.22. The company generated $448 million in adjusted free cash flow and closed the quarter with a net cash position of $91 million.
Demand for NAND products continued to outpace supply, a trend expected to persist through the end of calendar year 2026 and beyond. Sandisk is making strategic allocation decisions to maximize long-term value.
The Data Center Business revenue increased 26% sequentially, driven by Global Hyperscaler, Neocloud, and OEM customers. BiCS8 technology accounted for 15% of total bits shipped and is projected to reach a majority of bit production by the end of fiscal year 2026.
The company anticipates cost headwinds to transition to cost tailwinds in the December quarter, expecting gross margin expansion primarily due to pricing improvements and lower cost per gigabyte from the BiCS8 ramp. Most of the revenue growth in the upcoming quarter is expected to be pricing-driven.

Nov 6, 2025, 9:30 PM

Transcript

Sandisk Corporation Announces Strong Q1 2026 Results and Positive Q2 2026 Guidance

SNDK

Earnings

Guidance Update

Revenue Acceleration/Inflection

Sandisk Corporation reported Q1 2026 revenue of $2.3 billion and Non-GAAP diluted net income per share of $1.22, with a Non-GAAP gross margin of 29.9%.
The company achieved a net cash position approximately 6 months faster than its target and noted that demand for its NAND products continued to outpace supply.
Datacenter revenue grew 26% sequentially, and Edge end market revenue increased 26% quarter-over-quarter to $1,387 million, driven by AI growth and PC refresh cycles.
For Q2 2026, Sandisk provided guidance for Non-GAAP revenue between $2,550 million and $2,650 million, Non-GAAP gross margin of 41.0% to 43.0%, and Non-GAAP diluted net income per share of $3.00 to $3.40.

Nov 6, 2025, 9:30 PM

Presentation

SanDisk Reports Strong Q1 2026 Results and Provides Q2 2026 Guidance

SNDK

Earnings

Guidance Update

Revenue Acceleration/Inflection

SanDisk reported strong Q1 FY2026 results, with revenue of $2.3 billion and non-GAAP EPS of $1.22 , exceeding prior guidance. The company also achieved a net cash position of $91 million and generated $448 million in adjusted free cash flow.
For Q2 FY2026, the company expects revenue between $2,550 million and $2,650 million and non-GAAP EPS between $3 and $3.40. Non-GAAP gross margin is projected to be 41% to 43%.
Demand for NAND products continues to outpace supply, a trend anticipated to extend beyond calendar year 2026, with fabs operating at 100% utilization. The data center business revenue increased 26% sequentially.
The company's BICS8 technology comprised 15% of total bits shipped and is expected to become the majority of bit production by the end of fiscal year 2026. SanDisk has also achieved its primary capital allocation goal of reaching a net cash position.

Nov 6, 2025, 9:30 PM

Transcript

Sandisk Reports Q1 2026 Financial Results and Provides Q2 2026 Outlook

SNDK

Earnings

Guidance Update

Revenue Acceleration/Inflection

Sandisk reported Q1 2026 revenue of $2.31 billion, an increase of 21% sequentially, with GAAP net income of $112 million and Non-GAAP diluted net income per share of $1.22.
Datacenter revenue grew 26% sequentially in Q1 2026, and the company achieved its net cash positive milestone ahead of plan.
For Q2 2026, Sandisk expects revenue to be in the range of $2.55 billion to $2.65 billion, with Non-GAAP diluted net income per share projected between $3.00 and $3.40.
BiCS8 technology accounted for 15% of total bits shipped in Q1 2026 and is expected to represent the majority of bit production by the end of fiscal year 2026.