Sandisk Q4 Earnings Call Centers on AI Demand and Long-Term Deals

Sandisk Corporation SNDK used its fiscal fourth-quarter 2026 earnings call to emphasize multiyear customer commitments, rising AI-related storage demand and a more predictable NAND business model.

The quarter’s non-GAAP EPS of $39.25 exceeded the Zacks Consensus Estimate of $34.24. Revenues of $8.97 billion beat the consensus mark of $8.30 billion.

Sandisk Corporation Price, Consensus and EPS Surprise

Sandisk Corporation price-consensus-eps-surprise-chart | Sandisk Corporation Quote

SNDK Locks in Multiyear Demand

Executive VP and CFO Luis Visoso said Sandisk now has New Business Model agreements with eight Datacenter and Edge customers, with a weighted average duration above four years.

Those agreements are expected to cover more than 50% of fiscal 2027 bits and roughly two-thirds of fiscal 2028 bits. Minimum expected revenues at floor pricing total $93.9 billion.

Chairman and CEO David V. Goeckeler said customers are already returning to request more supply, reinforcing management's focus on selective, long-duration agreements with strategic buyers.

Sandisk Expands AI Storage Exposure

Goeckeler said Datacenter exited fiscal 2026 at 38% of Sandisk's bit mix, up from roughly 12% a year earlier, as enterprise SSD adoption broadened.

He tied that shift to AI inference, where expanding models, longer context lengths and agentic workloads increase storage requirements. Sandisk also began revenue shipments of its QLC Stargate platform.

During Q&A, a Citi analyst asked about KV-cache demand. Goeckeler said customer discussions continue to deepen and management has become more optimistic about NAND requirements as AI architectures mature.

SNDK Guides for Another Step-Up

Visoso guided fiscal first-quarter 2027 revenues to $10.3-$10.8 billion and non-GAAP EPS to $44-$46, with growth from both higher bits and modest price increases.

Non-GAAP gross margin is expected at 83-85%, while non-GAAP operating expenses are projected at $520-$540 million as Sandisk continues investing in R&D.

Visoso also said Sandisk expects the NAND market to exceed $300 billion in calendar 2026 and approach $500 billion in 2027, with customer demand growing faster than supply.

Sandisk Defends Margin Durability

A Melius Research analyst pressed management on NBM economics. Visoso said the company continues to expect margins around 80% on those agreements, with upside when pricing rises.

A Cantor Fitzgerald analyst asked why gross-margin guidance did not rise despite modest pricing gains. Goeckeler said Sandisk is balancing returns with longer duration and greater business visibility.

Visoso added that NBMs should not be viewed as a margin drag. He cited mix, component-cost assumptions and the guidance range as the main factors shaping the near-term outlook.

SNDK Keeps Supply Growth Disciplined

Visoso said Sandisk remains committed to mid to high-teens long-term bit growth, primarily through technology transitions rather than major wafer additions.

For fiscal 2027, sellable bit growth is expected in the mid-teens as the company carries more inventory to support NBM commitments. Capital spending is projected near 6% of revenues.

A Morgan Stanley analyst asked whether Sandisk could accelerate spending. Visoso said the current plan remains appropriate, while Goeckeler said nodal transitions provide flexibility to track market demand.

Sandisk Accelerates Capital Returns

Sandisk repurchased $4.5 billion of stock during the quarter, and its board authorized another $14 billion, bringing remaining repurchase authorization to $15.5 billion.

Goeckeler said management expects consistent execution of the buyback program, supported by confidence in the portfolio's cash generation.

Visoso said investment in the business remains the first priority, followed by maintaining a strong cash position. He described share repurchases as the preferred current vehicle for returning excess cash.

SNDK Enters Fiscal 2027 With More Visibility

Management's message centered on replacing quarterly transaction-driven planning with multiyear customer commitments, while keeping supply additions disciplined and tied to technology transitions.

Goeckeler emphasized deeper strategic engagement with major customers, while Visoso focused on attractive agreement economics, R&D investment and continued shareholder returns.

Zacks Signals for SNDK

SNDK sports a Zacks Rank #1 (Strong Buy). Its Growth Score and VGM Score are both A, complementing that top rank. SNDK’s Value Score and Momentum Score are both B.

Zacks Style Scores identify A and B grades as favorable, particularly alongside a Zacks Rank #1 or 2 (Buy). The Zacks Rank can change as analyst estimates are revised following the newly reported results. You can see the complete list of today’s Zacks #1 Rank stocks here.

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