The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 37 | 48.7x | 20.8x | Bottom tier | |
Growth | 99 | 82.8% | 6.1% | Top tier | |
Quality | 89 | 47.1% | 6.6% | Top tier | |
Safety | 96 | — | 0.7x | Top tier | |
Capital Return | 76 | — | 2.02% | Top tier | |
Momentum | 91 | — | 4.1% | Top tier | |
Sentiment | 65 | 11 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Sandisk Corporation operates in the design, development, and manufacturing of NAND flash-based data storage solutions, earning its revenues primarily from selling these solutions to three main markets: Data Center, smart Edge devices (such as mobile phones and personal computers), and Consumer products. The company relies on an integrated operating model covering the entire chain from front-end manufacturing, chip and system design, to final assembly and testing, leveraging its long-standing strategic partnership with Kioxia to develop leading technologies such as BiCS 8 and TLC- and QLC-based storage solutions to meet the requirements of advanced artificial intelligence infrastructure.
During the third quarter of fiscal year 2026, Sandisk achieved record financial results that significantly exceeded expectations, driven by exceptional demand for AI data storage solutions. Total revenues for the quarter reached $5.95 billion (recorded as $6.0 billion in official EDGAR financial statements), representing a massive 251% jump year-over-year and 97% sequential growth compared to the previous quarter. The company recorded strong net income of $3.6 billion, with GAAP earnings per share (EPS) of $23.03, while the non-GAAP gross margin rose sharply to 78.4% compared to 51.1% in the second quarter, supported by improved average selling prices and a strategic shift toward higher-value products.
The third-quarter revenue was distinctively distributed among operating segments; Data Center segment revenue jumped by an impressive 233% sequentially to reach $1.467 billion, thanks to robust demand for the TLC-based enterprise solid-state drive portfolio. The Edge segment achieved revenue of $3.163 billion, representing 118% sequential growth driven by the ongoing shift toward premium devices and higher storage capacities, while the Consumer segment recorded revenue of $820 million, down 10% in line with the company's historical seasonality.
Sandisk Corporation's stock enjoys a strong positive analyst consensus recommending a 'Buy', with an average price target of $1,574.69, and estimates ranging from a low of $450 to an optimistic high of $2,900. Considering the stock's wide 52-week trading range between $40.1 and $2,119.9, this valuation reflects intense market optimism regarding the restructuring of the company's business model, its achievement of sustainable profit margins, and its high capacity to generate free cash flow thanks to the AI boom.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
The New Business Model is an innovative contracting strategy aimed at signing multi-year supply agreements with major customers to secure demand and pricing stability. Sandisk has successfully signed 5 such agreements, the longest of which spans five years, and these contracts cover more than one-third of the company's targeted bit shipments in fiscal year 2027. These models help reduce the historical cyclical volatility of NAND pricing, ensuring sustainable profit margins and more stable returns for shareholders.
The first three agreements signed during the third quarter provide a minimum guaranteed remaining performance obligation (RPO) of approximately $42 billion, to be recognized over the life of the contracts. To ensure the execution of these commitments, Sandisk secured financial guarantees from customers exceeding $11 billion in total value, including prepayments and financial instruments managed by third-party financial institutions. These guarantees are clearly visible on the third-quarter balance sheet, which already included $400 million in cash prepayments.
The expansion of massive AI models and their transition toward agentic AI systems require immense storage capacities and ultra-low latency for real-time inference. NAND flash memory solutions represent the only economically scalable component to meet these needs, particularly with inference optimization requirements like KV cache and Retrieval-Augmented Generation (RAG) workloads. Sandisk capitalizes on this trend by providing a leading product portfolio based on BiCS 8 technology and advanced TLC and QLC solutions for data centers.
Automated analysis for informational purposes only — not investment advice.
Sandisk's management expects an exceptionally strong financial performance in the fourth quarter of fiscal year 2026, with revenue estimated between $7.75 billion and $8.25 billion, supported by bit shipment growth and pricing improvements. The company also projects its non-GAAP gross margin to range between 79% and 81%, with operating expenses between $480 million and $500 million. Based on these inputs, non-GAAP EPS is expected to range between $30 and $33.
Sandisk paid off the remaining $650 million balance of its Term Loan B (TLB) during the third quarter, completely eliminating its debt and reaching a strong net positive cash position of $3.735 billion in cash and cash equivalents. Building on this achievement and the generation of $2.955 billion in adjusted free cash flow, the board of directors approved a massive $6 billion share buyback program with no expiration date. The company also strengthened its operational stability with a $1 billion investment in Nanya and by extending its joint venture with Kioxia until the end of 2034.