Sandisk closed its fiscal year 2026 with revenues of $20.25 billion, a 175% increase over the previous period, and a net profit of $11.43 billion. The NAND memory manufacturer attributes this growth to rising prices, increased volume sold, and especially to the expansion of its data center business, which grew by 437% during the year.
The key highlights of Sandisk’s results in 30 seconds
- Annual revenue reached $20.25 billion, with a year-over-year growth of 175%.
- The data center division advanced by 437%, supported by demand for AI storage.
- In Q4, two-thirds of the growth came from higher prices.
- Sandisk expects to bill between $10.3 billion and $10.8 billion in the first fiscal quarter of 2027.
- The board expanded its share repurchase program by $14 billion.
These figures reflect the rapid changes in the flash memory market. After several years characterized by excess inventory and weak prices, growth in AI infrastructure is boosting demand for enterprise SSDs and higher-capacity NAND solutions.
Prices contributed two-thirds of the quarterly growth
During its fiscal fourth quarter, which closed on July 3, 2026, Sandisk posted revenues of $8.97 billion, a 51% increase compared to the previous quarter.
The company explained that about one-third of this increase was due to higher product volumes. The remaining two-thirds resulted from price increases, reflecting a recovery in pricing power among memory manufacturers.
Net income calculated under US GAAP reached $6.9 billion, with diluted earnings per share of $43.97. On an adjusted basis, EPS was $39.25.
For the full fiscal year, Sandisk reported a net profit of $11.43 billion and a diluted EPS of $73.76. Excluding certain accounting and extraordinary items, adjusted EPS was $70.88.
The company notes that the Q4 results are preliminary and subject to adjustments following audits and final closing procedures.
AI is turning storage into a core business
The most telling figure of Sandisk’s transformation is the 437% year-over-year increase in its data center revenue.
The expansion of AI is raising storage needs across major cloud platforms. Operators require high-capacity SSDs to store datasets, models, inference results, vector databases, and persistent memory for agent-based applications.
While NAND does not replace faster memories like HBM or DRAM, it can serve as a large-capacity layer for information that does not need to remain constantly in the main memory of accelerators.
This evolution is changing the role of SSDs in servers. Storage is no longer just a repository but is becoming more directly integrated into AI processing workloads.
Sandisk attributes its strong annual performance also to increased presence among high-value clients. While it hasn’t specified the exact contribution of different products or customer segments, it highlights data centers as one of its new pillars.
Ten agreements to provide demand visibility
Sandisk also announced progress in its so-called New Business Model (NBM), a system of commercial agreements designed to strengthen long-term relationships with strategic customers.
The company had announced five contracts during its April earnings presentation, and now adds five more. Three are with new clients, and two expand existing agreements.
These contracts can offer better visibility into future demand in an industry characterized by cycles of sharp rises and falls. When supply exceeds market needs, memory prices tend to fall rapidly. When available capacity tightens and demand increases, recovery can be swift as well.
The price increases observed during Q4 suggest that SSDs may continue to become more expensive if large data centers keep absorbing a growing share of production.
However, Sandisk’s results alone do not guarantee a widespread rise in consumer unit prices. Final prices will depend on NAND production levels, inventories, demand from device manufacturers, and the pace of new AI infrastructure developments.
Share repurchase program now totals $15.5 billion
Sandisk’s board of directors has authorized an additional $14 billion for share buybacks. After this extension, the remaining amount under the program totals $15.5 billion.
The company presents this decision amid robust profit generation and cash flow growth. However, not all the funds will necessarily be used immediately; acquisitions will depend on board decisions, market conditions, and the company’s financial needs.
Sandisk has operated as an independent publicly traded company since February 21, 2025, following its spin-off from Western Digital. Prior results are based on separate financial statements using the historic accounts of the former parent, so year-over-year comparisons should consider this corporate change.
Sandisk aims to surpass $10 billion in the next quarter
For the first quarter of its fiscal 2027, Sandisk projects revenues between $10.3 billion and $10.8 billion.
The company also expects an adjusted EPS of between $44 and $46. This forecast excludes certain expenses, such as stock-based compensation, and other items whose exact amounts are not yet predictable.
CEO David Goeckeler believes the company ended the year with a competitive technology portfolio, stronger customer relationships, and a data center business that is a key growth driver.
The continuation of this trend will depend on AI demand, memory pricing, manufacturing capacity, Sandisk’s relationship with Kioxia, and the evolution of long-term agreements with customers.
Frequently Asked Questions
How much did Sandisk earn in its fiscal 2026?
Sandisk reported annual revenue of $20.25 billion, a 175% increase over the prior year.
Which area grew the most during the year?
The data center business grew 437% year-over-year and became one of the company’s main growth drivers.
Why did quarterly revenues increase so much?
Sandisk explained that one-third of the sequential growth was from higher volumes, and two-thirds from increased prices.
Will SSD prices continue to rise?
The company has not forecast a general price increase in the consumer market. Future prices will depend on NAND supply, inventories, demand from data centers, and device manufacturers.
