Aug 8, 2026 – SanDisk Corp. reported a staggering 175% year-over-year revenue increase to $20.25 billion for fiscal 2026, fueled by an explosive 437% surge in data-center sales as the company cements its position as a critical player in the AI infrastructure boom.
The flash-memory giant's fourth-quarter results blew past Wall Street estimates, with revenue hitting $8.97 billion – a 51% sequential jump that topped consensus forecasts of $8.42 billion. Earnings per share came in at $39.25, exceeding the average analyst estimate of $34.59 by nearly $5.
"We closed fiscal 2026 with a leading technology portfolio, established datacenter as a key growth pillar, and deepened our customer partnerships," said David Goeckeler, chief executive officer of SanDisk, in a statement.
Data Center Now Represents 38% of Portfolio
Data-center revenue reached $2.98 billion in the fourth quarter alone, up 103% from the previous quarter. The segment now accounts for 38% of SanDisk's total business, compared with just 12% a year earlier.
Executives attributed roughly one-third of the growth to higher shipment volumes, with stronger pricing accounting for the remaining two-thirds – a dynamic that reflects tight supply conditions in the AI-driven memory market.
Goeckeler described AI inference workloads as "memory-centric and storage-intensive," positioning SanDisk's NAND flash products as essential components in the expanding artificial intelligence value chain.
Gross margins expanded dramatically to 84.6% in Q4, up from 26.4% in the same period last year. The company swung to GAAP net income of $6.90 billion, compared with a loss of $23 million in the prior-year quarter.
Long-Term Contracts Secure Nearly $94 Billion in Revenue
The company has signed eight long-term supply agreements with customers, carrying a combined floor value of approximately $93.9 billion. These contracts cover more than 50% of shipments for fiscal 2027 and about two-thirds for fiscal 2028 – up from just one-third coverage three months earlier.
The weighted average contract term exceeds four years, with some agreements extending to five years. Pricing mechanisms incorporate a mix of fixed and floating elements, tailored to individual customer requirements.
The enhanced contract coverage signals a structural shift in the memory industry. According to Goldman Sachs analysts, suppliers have gained negotiating leverage across longer durations, broader coverage, and more favorable pricing structures – a trend exemplified by SanDisk's latest agreements.
Consumer Weakness, Mixed Guidance Weigh on Shares
Despite the blockbuster results, SanDisk shares fell between 4% and 10% in after-hours trading, as investors focused on guidance that fell short of the most optimistic projections.
The company forecast first-quarter 2027 revenue of $10.3 billion to $10.8 billion, compared with highest Street estimates of approximately $12.3 billion. The cautious outlook underscores lingering weakness in consumer products, where revenue declined 32% year-over-year to $556 million amid sluggish PC and smartphone demand.
The stock's decline follows a staggering 3,000% rally over the past year, leaving little room for disappointment. Both SanDisk and Western Digital now trade roughly 50% below their all-time highs, suggesting potential profit rotation among institutional investors.
Market Implications
The divergent performance between SanDisk's data-center and consumer segments illustrates the widening gap between AI-driven enterprise spending and consumer electronics demand. As hyper-scalers and cloud providers continue to expand AI infrastructure, memory suppliers are capturing an increasingly large share of the value chain.
Yet the market's muted response to record results highlights the elevated expectations embedded in semiconductor stocks. Investors are now pricing in near-perfect execution, leaving limited margin for error.
The cryptocurrency market is closely watching these developments. With Bitcoin holding above $64,000 and gold surging over 7% in recent sessions, some analysts are observing a potential rotation away from AI names into alternative assets – a trend that could benefit digital assets if sustained.
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