SanDisk presented an extended financial projection spanning fiscal years 2028 through 2030 at an Investor Day event on August 13, detailing targets for profitability and capital allocation. The company projects annual revenue growth in the mid-to-high teens range, with adjusted gross margins estimated at approximately 80% and adjusted operating margins near 75%. Operating expenses are targeted at roughly 5% of revenue, while adjusted free cash flow margin is expected to reach approximately 50% after accounting for taxes, capital expenditures, and working capital adjustments.
A significant component of the guidance involves the company’s commitment to shareholder returns. SanDisk indicated it expects to return 100% of excess cash to shareholders following investments in business operations. Given the projected free cash flow margins of 50% combined with double-digit annual revenue growth, company leadership suggested this policy would generate substantial cash distributions to shareholders over the three-year forecast period. CFO Luis Visoso emphasized the company’s focus on optimizing for growth, sustainability, and shareholder returns, noting confidence in the model’s durability stems from multi-year customer agreements based on innovation and collaboration.
The long-term guidance accompanied fourth-quarter fiscal 2026 results released earlier in August that showed exceptional performance. Q4 revenue reached $8.97 billion, representing a 51% sequential increase and 372% year-over-year growth. Full-year fiscal 2026 revenue totaled $20.25 billion, up 175% compared to the prior year. Data center operations, a key growth driver, generated $2.98 billion in Q4 revenue, up 103% sequentially, with full-year data center revenue of $5.15 billion marking a 437% year-over-year increase.
For the first quarter of fiscal 2027, management guided revenue of $10.30 billion to $10.80 billion, non-GAAP gross margin of 83.0% to 85.0%, and non-GAAP diluted earnings per share of $44.00 to $46.00. CEO David Goeckeler attributed the company’s strong performance to disciplined execution of a strategy established approximately 18 months prior, positioning SanDisk’s NAND flash innovations and systems expertise to benefit from infrastructure demand driven by artificial intelligence deployment. Multi-year customer agreements locked in above 80% margins and already committed more than one-third of fiscal 2027 output, providing revenue visibility ahead.
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