Sandisk Authorizes $15.5 Billion Buyback Amid AI Demand Surge

Sandisk authorized a $14 billion share repurchase program in August 2026, increasing its total remaining buyback authorization to $15.5 billion. This move allows the company to retire approximately 8.6% of its outstanding shares, funded by operating cash flows that reached $11.7 billion in fiscal 2026.

The buyback follows a period of rapid financial expansion fueled by AI data center build-outs and NAND flash storage demand from hyperscalers including Meta Platforms, Microsoft, and Space Exploration Technologies. Fiscal 2026 revenue rose 175% to approximately $20.3 billion, while net income swung from a $1.6 billion loss to $11.4 billion. For the fourth quarter of fiscal 2026, the company reported revenue of $8.97 billion, a 51% sequential increase, and a net profit margin of 77%.

To stabilize future earnings, the company implemented a new business model featuring long-term supply contracts. These agreements have secured a minimum contracted revenue floor of $93.9 billion, supported by $16.5 billion in prepayments. CEO David Goeckeler stated that the company's technology and products are positioned to generate growing and durable free cash flow.

Looking ahead, Sandisk provided first-quarter fiscal 2027 revenue guidance between $10.3 billion and $10.8 billion, representing a potential 20% sequential growth rate. Since returning to the market as an independent public company in February 2025, the company's stock has risen more than 3,400%.