SanDisk Corporation Revenue Surges 372% Amid AI Storage Demand

SanDisk Corporation reported a 372% year-over-year increase in fourth-quarter revenue, reaching $8.97 billion. This growth was driven by an unprecedented NAND flash memory shortage and a strategic pivot toward AI infrastructure, which caused data center revenue to surge. By the end of fiscal 2026, data center bit volume grew from 12% to 38% of the company's portfolio, with adjusted free cash flow totaling $5.04 billion and gross margins hitting 84.6%.

To mitigate the cyclical pricing risks inherent in the NAND flash market, the company signed eight long-term agreements with data center and edge computing customers. These contracts secure nearly $94 billion in future revenue over averages of more than four years. Management expects these agreements to cover over 50% of bit volume in fiscal 2027 and approximately two-thirds in fiscal 2028, utilizing contractual pricing floors to improve long-term visibility.

Despite a stock price increase of 649% over the course of 2026, the share price declined 23% from a June peak of $2,354. Analysts warn that current profitability relies on exceptional pricing and supply constraints that may be unsustainable. The company remains vulnerable to margin normalization if profits revert to historical levels following the current NAND cycle.