SanDisk CEO Reveals the Company’s Ambitious Long-Term Financial Model

SanDisk (SNDK) has been making waves in the market with its impressive financial performance. On Thursday, Aug. 13, the company gave investors a glimpse into its long-term financial model, which spans fiscal years 2028 through 2030.

The model projects revenue growth in the mid-to-high teens annually, with adjusted gross margins expected to reach approximately 80%. Adjusted operating margins are also projected to be around 75%, while operating expenses are targeted at roughly 5% of revenue.

One of the most striking elements of the model is SanDisk’s commitment to returning 100% of excess cash to shareholders after investing in the business. This policy implies an extraordinary cash return trajectory for shareholders over the three-year period.

CFO Luis Visoso shared additional thoughts during the Investor Day presentation, stating that the company is optimizing for growth, sustainability, and returns. He emphasized that the confidence in the sustainability of the model comes from multi-year NBMs (New Business Model) agreements with hyperscale customers at margins above 80%.

The long-term targets carried weight because they arrived alongside a Q4 fiscal 2026 earnings print that was itself extraordinary. Q4 revenue reached $8.97 billion, up 51% sequentially from Q3 and 372% year over year (YoY). Full-year fiscal 2026 revenue totaled $20.25 billion, up 175% YoY from $7.35 billion in fiscal 2025.

Data center revenue for Q4 hit $2.98 billion, up 103% sequentially. Full-year data-center revenue of $5.15 billion represented a 437% YoY increase from $960 million in fiscal 2025. These earnings results are some of the most impressive analyzed in recent history.

For Q1 fiscal 2027, SanDisk guided revenue of $10.30 billion to $10.80 billion, with non-GAAP gross margin of 83.0% to 85.0% and non-GAAP diluted EPS of $44.00 to $46.00. The pricing environment is strengthening rather than plateauing, with roughly two-thirds of Q4’s sequential revenue growth coming from higher pricing and only one-third from volume.

CEO David Goeckeler’s message at Investor Day was that the best chapter is yet to come. He connected the current performance to a strategy he outlined 18 months ago, stating that the company has 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.

The New Business Model (NBM) agreements, which lock in multi-year pricing with hyperscale customers at margins above 80%, are the mechanism that converts the supply shortage into durable earnings rather than cyclical peaks. More than one-third of fiscal year 2027’s output is already committed under those agreements.

FactSet data from Aug. 10 shows the Semiconductors and Semiconductor Equipment industry led S&P 500 revenue growth at 77% year over year in the most recent reporting period, with all 11 S&P 500 sectors reporting positive revenue growth. SanDisk is the single largest contributor to that outperformance in absolute dollar terms.

The 580% year-to-date return, the 3,150% one-year return, and the 13.67% Investor Day surge are already in the history books. What Goeckeler put on the table is the argument that the decade ahead may be as consequential as the year that just happened.