SanDisk Q4 FY2026 Earnings: Revenue Surges 372% to $8.96 Billion as AI Data Center Demand Fuels Record Results and $14 Billion Buyback
2026/08/10 14:53:00
Introduction
SanDisk Corporation delivered one of the most dramatic quarterly performances in the memory sector when it reported fiscal fourth-quarter 2026 results. Revenue reached $8.96 billion, a 372% year-over-year jump that easily cleared analyst estimates, while non-GAAP earnings per share hit $39.25. The company also secured board approval for an additional $14 billion share repurchase program.
These figures, released in early August 2026, underscore how surging AI infrastructure spending has rewritten the economics of NAND flash storage.
What Drove SanDisk’s Record Q4 FY2026 Revenue and Earnings Beat?
SanDisk’s fiscal fourth-quarter revenue of $8.96 billion rose 51% sequentially and 372% from the $1.90 billion reported a year earlier, according to the company’s official results. The top line beat consensus estimates that clustered around $8.48 billion. Non-GAAP diluted earnings per share came in at $39.25, well above the roughly $34.96 to $35 range expected by analysts and up sharply from $0.29 in the year-ago quarter. GAAP net income reached $6.90 billion, or $43.97 per diluted share.
Full-year fiscal 2026 revenue totaled $20.25 billion, a 175% increase from the prior year. Non-GAAP diluted EPS for the full year stood at $70.88. Management attributed the sequential revenue gain roughly one-third to higher bit volumes and two-thirds to stronger pricing. Gross margin on a non-GAAP basis expanded to 84.6%, up from 78.4% in the previous quarter and 26.4% a year earlier. Operating margin reached 79.2%. Adjusted free cash flow for the quarter hit approximately $5.0 billion, representing a 56% margin.
How Did Datacenter and Edge Segments Power the Growth?
Datacenter revenue more than doubled sequentially to $2.98 billion, rising 103% from the prior quarter and roughly 1,300% year-over-year. For the full fiscal year the segment generated $5.15 billion, up 437%. Datacenter bits grew from about 12% of the portfolio a year earlier to 38% by the end of fiscal 2026, making it the company’s fastest-growing end market. Demand stemmed from compute-focused TLC enterprise solid-state drives used in hyperscale and AI infrastructure, plus the start of revenue shipments for the QLC Stargate platform aimed at high-capacity AI data lakes.
Edge revenue, covering smartphones, PCs, and related devices, climbed 48% sequentially to $5.43 billion and 392% year-over-year. Full-year Edge sales reached $12.16 billion, up 195%. Consumer revenue declined 32% sequentially to $556 million, reflecting softer demand and pricing adjustments in that channel. The mix shift toward higher-value datacenter and Edge customers, combined with elevated pricing, produced the outsized top-line and margin expansion.
What Are SanDisk’s New Business Models and Long-Term Commitments?
SanDisk has signed multiple multi-year New Business Model agreements with datacenter and Edge customers. These contracts carry weighted-average durations exceeding four years and, in some cases, up to five years. Minimum contracted revenues under the agreements total $93.9 billion at floor pricing. Remaining performance obligations stood at $59.8 billion at quarter-end and would have reached $91.1 billion including two deals signed after the period closed. Customer financial guarantees backing the contracts amounted to $16.5 billion.
Management expects these long-term arrangements to represent more than half of bits shipped in fiscal 2027 and roughly two-thirds in fiscal 2028. The shift moves a larger portion of the business away from volatile spot-market pricing toward more predictable, premium contracted revenue.
What Guidance Did SanDisk Provide for Fiscal Q1 2027?
For the first quarter of fiscal 2027, SanDisk guided revenue in the range of $10.30 billion to $10.80 billion. Non-GAAP diluted earnings per share are expected between $44.00 and $46.00. The midpoint of the revenue outlook sits near Street estimates around $10.8 billion, though some optimistic forecasts had run higher. The company continues to operate with supply constraints in certain product categories while building inventory to support the multi-year commitments.
The broader NAND market is projected to exceed $300 billion in calendar 2026 and approach $500 billion in calendar 2027, with the datacenter share rising toward 50%. SanDisk maintains technology leadership through BiCS8, which now accounts for the majority of bit production, and the announcement of BiCS10.
In the fourth quarter SanDisk repurchased $4.5 billion of its common stock, retiring approximately 2.84 million shares. The board then approved an additional $14 billion share-repurchase authorization, bringing the total remaining capacity to $15.5 billion. The company expects to fund buybacks primarily from operating cash flow. Cash and cash equivalents stood at roughly $4.76 billion at quarter-end, and the balance sheet carried no long-term debt.
Capital-allocation priorities remain investment in the business to support growth, followed by return of excess cash to shareholders. Management has indicated it intends to execute the expanded program consistently.
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Conclusion
SanDisk closed fiscal 2026 with record revenue, sharply expanded margins, and a clear pivot toward higher-value datacenter customers. The $8.96 billion fourth-quarter result, 372% year-over-year growth, and $39.25 non-GAAP EPS demonstrated the strength of AI-related demand and the company’s ability to capture pricing power. Multi-year contracts totaling nearly $94 billion in minimum revenue, combined with a $14 billion buyback authorization that lifts remaining capacity to $15.5 billion, reinforce management’s confidence in durable free-cash-flow generation.
Guidance for fiscal first-quarter 2027 revenue of $10.3 billion to $10.8 billion and non-GAAP EPS of $44 to $46 points to continued sequential growth, even as supply remains tight. The rapid rise of datacenter bits from 12% to 38% of the portfolio, technology leadership in BiCS NAND, and a clean balance sheet position SanDisk to benefit from the projected expansion of the NAND market toward $500 billion by calendar 2027. Investors and traders monitoring the AI infrastructure cycle will continue to watch execution against these long-term commitments and the pace of capital returns.
FAQs
What was SanDisk’s full-year fiscal 2026 revenue?
SanDisk reported full-year fiscal 2026 revenue of $20.25 billion, up 175% from the prior year.
How much did datacenter revenue grow in Q4?
Datacenter revenue reached $2.98 billion in the fourth quarter, up 103% sequentially.
What is the size of SanDisk’s new share-repurchase authorization?
The board approved an additional $14 billion buyback program, bringing total remaining authorization to $15.5 billion.
What revenue range did SanDisk guide for fiscal Q1 2027?
The company expects revenue between $10.30 billion and $10.80 billion.
Why did SanDisk’s gross margin expand so sharply?
Non-GAAP gross margin rose to 84.6% primarily because of higher pricing and a favorable mix shift toward higher-value datacenter and Edge products.