Sandisk Corporation (SNDKV) Q3 2026 Earnings Report

Sandisk Corporation delivered a standout QQ3 2026 quarter, underscoring a strategic pivot toward multiyear new business models (NBMs) that lock in demand and reinforce durable earnings. Revenue reached $5.95 billion, up 97% sequentially and 251% year over year, driven by a favorable mix shift to high-value data-center and enterprise SSD products. The company achieved non-GAAP gross margins of 78.4% (vs. guidance of 65-67%), and non-GAAP operating margin of 70.9% with non-GAAP EPS of $23.41, well ahead of prior periods. Management highlighted five NBMs signed to date, totaling more than $11 billion in financial guarantees and approximately $42 billion of minimum contractual revenue (RPO) for fiscal 2027, positioning Sandisk for higher, more durable returns and reduced cyclicality. The data center end market emerged as the fastest-growing channel (revenue up 233% sequentially to $1.467 billion), while edge and consumer segments showed robust but mixed dynamics: edge up 118% to $3.163 billion; consumer at $0.82 billion, down 10% seasonally. Free cash flow was strong at $2.96 billion (49.7% FCF margin), supporting a net cash position and an accelerated capital return plan, including a new $6 billion share buyback program. The quarterly results also featured a significant shift in capacity planning and supply commitments, with a shift toward BiCS 8 and Stargate QLC ramp expected in Q4. Looking ahead, Q4 guidance calls for $7.75–$8.25 billion in revenue, 79–81% non-GAAP gross margin, and EPS of $30–$33, suggesting continued leverage from NBMs and data-center demand, albeit with ongoing sensitivity to AI infrastructure demand and pricing dynamics.