Sandisk Details Growth Strategy and Long-Term Financial Model

Summary:

• Leading NAND technology roadmap and durable customer partnerships to drive sustainable long-term value
• Financial model from FY2028 through FY2030 optimized for growth, sustainability and shareholder return
• company expects to return 100% of excess cash to shareholders after investing in the business

Sandisk Corp. highlighted its long-term growth strategy and sustainable long-term financial model at its 2026 Investor Day, Sandisk In Focus.At the event, Sandisk outlined key areas of product and technology innovation and developments in its business model. A replay of the presentation will be available on Sandisk’s Investor Relations website.

“Our strong performance today is the direct result of disciplined execution vs. the strategy we outlined 18 months ago,” said David Goeckeler, chairman and CEO, Sandisk. “We have built a differentiated position through decades of NAND flash innovation, deep systems-level expertise, a diversified portfolio, capital-efficient operations and management of the full technology stack. These strengths represent our rich intellectual capital and give us a clear foundation to continue serving customers across end markets while creating sustainable long-term value for shareholders.”

Advancing Innovation in NAND Flash
The rapid adoption of AI is accelerating the transition of storage interfaces, creating demand for memory technologies that can evolve quickly. Built on the foundation of CMOS directly Bonded to Array (CBA) technology, Sandisk unveiled a two-dimensional scaling strategy that allows it to produce custom derivatives that meet rapidly changing market requirements in a capital-efficient manner. Sandisk’s new BiCS9 QLC technology is the first example of this strategy. It combines a proven BiCS8 array with a BiCS10-based CMOS wafer to deliver the high-performance needed for AI-driven workloads with capital-efficient manufacturing. Sandisk will also continue to drive bit growth, demonstrated by the new BiCS10 QLC node which achieves 60% increase in bit density compared to BiCS8, setting the industry benchmark for bit density, performance and power efficiency.

Comprehensive Portfolio Well-Positioned to Drive Growth in the Age of AI Inference
As AI inference workloads are driving the proliferation of token use, KV cache is reshaping the memory hierarchy. The AI data center is expected to become dramatically more storage intensive, with the total available market for enterprise data center flash growing to 1.2 zettabytes by 2030. With a comprehensive portfolio of products designed to help customers succeed in the next phase of AI growth, Sandisk is uniquely positioned to meet the industry’s rapidly growing demands for higher performance, lower power consumption, and greater storage density.

Durable New Business Model (NBM) Agreements Key to Long-Term Planning
Built on committed volumes, enforceable contractual frameworks with minimum financial guarantees, and structured pricing mechanisms, Sandisk’s NBMs strengthen alignment between customer demand and Sandisk’s capacity planning while reducing exposure to traditional industry volatility. Quickly becoming its predominant way of doing business, Sandisk has signed NBMs with eight customers, representing approximately 50% of bits in FY2027 and approximately two-thirds of bits in FY2028. These agreements support more predictable revenue streams, improved cash flow visibility, and durable earnings growth, further positioning Sandisk to deliver sustainable value for customers and shareholders.

HBF (High Bandwidth Flash) Memory Technology Gaining Momentum
Sandisk’s HBF technology is emerging as a compelling solution to address the growing opportunities presented by the era of AI inference. At the same time, an industry ecosystem is forming to support HBF technology adoption.

Sandisk Unveils New, Sustainable Financial Model
At the In Focus 2026 event, Sandisk introduced a comprehensive multi-year financial framework for fiscal year 2028 through fiscal year 2030. During this period, the company expects revenue to grow mid-to-high teens, consistent with bit growth, and expects non-GAAP gross margins to sustain at approximately 80% with non-GAAP operating margins at approximately 75%. This assumes operating expenses as a%age of revenue to be around five% with no meaningful impact from other income and expense. Sandisk expects to deliver adjusted free cash flow margin at approximately 50% after accounting for taxes, capital expenses, and working capital to support growth.

“As we unveil our new financial model for FY2028 through FY2030, we believe that we have a unique opportunity as we play in a large and fast-growing market with favorable tailwinds and that we are well positioned to capture the opportunity. We are optimizing for growth, sustainability and returns. As we do that, we expect to return 100% of excess cash to our shareholders after investing in the business. Our confidence in the sustainability of the model comes from our multi-year NBMs that are based on intimate relationships with our customers and grounded in innovation and collaboration,” said Luis Visoso, CFO, Sandisk.