Leading NAND technology roadmap and durable customer partnerships to drive sustainable long-term value
Financial model from FY2028 through FY2030 optimized for growth, sustainability and shareholder return
Company expects to return 100 percent of excess cash to shareholders after investing in the business

Sandisk (NASDAQ:SNDK) today highlighted its long-term growth strategy and sustainable long-term financial model at its 2026 Investor Day, Sandisk In Focus. At the event, Sandisk outlined key areas of product and technology innovation and developments in its business model. A replay of the presentation will be available on Sandisk’s Investor Relations website.

"Our strong performance today is the direct result of disciplined execution against the strategy we outlined 18 months ago," said David Goeckeler, Chairman and CEO, Sandisk. "We have 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. These strengths represent our rich intellectual capital and give us a clear foundation to continue serving customers across end markets while creating sustainable long-term value for shareholders."

Highlights from executive presentations include:

Advancing Innovation in NAND Flash – The rapid adoption of AI is accelerating the transition of storage interfaces, creating demand for memory technologies that can evolve quickly. Built on the foundation of CMOS directly Bonded to Array (CBA) technology, Sandisk unveiled a two-dimensional scaling strategy that allows it to produce custom derivatives that meet rapidly changing market requirements in a capital-efficient manner. Sandisk’s new BiCS9 QLC technology is the first example of this strategy. It combines a proven BiCS8 array with a BiCS10-based CMOS wafer to deliver the high-performance needed for AI-driven workloads with capital-efficient manufacturing. Sandisk will also continue to drive bit growth, demonstrated by the new BiCS10 QLC node which achieves 60% increase in bit density compared to BiCS8, setting the industry benchmark for bit density, performance and power efficiency.

Comprehensive Portfolio Well-Positioned to Drive Growth in the Age of AI Inference – As AI inference workloads are driving the proliferation of token use, KV cache is reshaping the memory hierarchy. The AI data center is expected to become dramatically more storage intensive, with the total available market for enterprise data center flash growing to 1.2 zettabytes by 2030. With a comprehensive portfolio of products designed to help customers succeed in the next phase of AI growth, Sandisk is uniquely positioned to meet the industry’s rapidly growing demands for higher performance, lower power consumption, and greater storage density.

Durable New Business Model (NBM) Agreements Key to Long-Term Planning – Built on committed volumes, enforceable contractual frameworks with minimum financial guarantees, and structured pricing mechanisms, Sandisk’s NBMs strengthen alignment between customer demand and Sandisk’s capacity planning while significantly reducing exposure to traditional industry volatility. Quickly becoming its predominant way of doing business, Sandisk has signed NBMs with eight customers, representing approximately 50 percent of bits in FY2027 and approximately two-thirds of bits in FY2028. These agreements support more predictable revenue streams, improved cash flow visibility, and durable earnings growth, further positioning Sandisk to deliver sustainable value for customers and shareholders.

HBF^™ (High Bandwidth Flash) Memory Technology Gaining Momentum – Sandisk’s HBF technology is emerging as a compelling solution to address the growing opportunities presented by the era of AI inference. At the same time, an industry ecosystem is forming to support HBF technology adoption.

Sandisk Unveils New, Sustainable Financial Model

At the In Focus 2026 event, Sandisk introduced a comprehensive multi-year financial framework for fiscal year 2028 through fiscal year 2030. During this period, the Company expects revenue to grow mid-to-high teens, consistent with bit growth, and expects non-GAAP gross margins to sustain at approximately 80 percent with non-GAAP operating margins at approximately 75 percent. This assumes operating expenses as a percentage of revenue to be around five percent with no meaningful impact from other income and expense. Sandisk expects to deliver adjusted free cash flow margin at approximately 50 percent after accounting for taxes, capital expenses, and working capital to support growth. ¹

Luis Visoso, Chief Financial Officer at Sandisk, said, "As we unveil our new financial model for FY2028 through FY2030, we believe that we have a unique opportunity as we play in a large and fast-growing market with favorable tailwinds and that we are well positioned to capture the opportunity. We are optimizing for growth, sustainability and returns. As we do that, we expect to return 100 percent of excess cash to our shareholders after investing in the business. Our confidence in the sustainability of the model comes from our multi-year NBMs that are based on intimate relationships with our customers and grounded in innovation and collaboration."

About Sandisk

Built on more than three decades of innovation, Sandisk is a vertically integrated global semiconductor company dedicated to delivering memory technologies that help people and businesses unlock the potential of their data. From the enterprise SSDs powering AI infrastructure to consumer devices and connected systems at the edge, Sandisk designs and manufactures memory solutions that fuel the modern digital economy. To learn more, visit www.sandisk.com.

© 2026 Sandisk Corporation or its affiliates. All rights reserved.

SANDISK, the SANDISK logo and HBF are registered trademarks or trademarks of Sandisk Corporation or its affiliates in the U.S. and/or other countries. All other marks are the property of their respective owners.

Forward-looking non-GAAP measures exclude certain charges for which the timing and amount cannot be quantified with certainty. Accordingly, full reconciliations to the most directly comparable GAAP financial measures are not available without unreasonable effort. Refer to the Investor Day presentation titled "Sustainable Value Creation" on Sandisk’s Investor Relations website for more information about the Company’s non-GAAP financial measures. These target financial metrics are based on a variety of estimates and assumptions, are subject to risks and uncertainties and should not be relied upon as necessarily indicative of future results.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of U.S. federal securities laws, including, among others, statements regarding expectations for: Sandisk Corporation's (the "Company’s") long-term growth strategy; the Company’s technology roadmap, product innovation and development efforts; the Company’s differentiated industry position and its ability to deliver sustainable value for customers and shareholders; demand trends driven by AI growth and the ability of the Company’s technologies to support AI-driven workloads, growing storage demands, and more capital-efficient manufacturing; the durability and benefits of the Company’s New Business Model agreements, and their contribution to future business volumes and improved revenue visibility; demand for, and customer adoption of, the Company’s products; business, operational and financial performance; the Company’s capital return policies; and the Company’s long-term financial model. These forward-looking statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements.

Key risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include: adverse changes in global or regional economic conditions, including the impact of evolving trade policies, tariff regimes and trade wars; volatility in demand for Sandisk’s products; pricing trends and fluctuations in average selling prices; inflation; changes in interest rates and a potential economic recession; future responses to and effects of global health crises; the impact of business and market conditions; the impact of competitive products and pricing; the development and introduction of products based on new technologies and management of technology transitions; risks associated with strategic initiatives, including restructurings, acquisitions, divestitures, cost saving measures and joint ventures; risks related to product defects; difficulties or delays in product ramps, manufacturing or other supply chain disruptions; reliance on strategic relationships with key partners, including Kioxia Corporation; risks related to long-term agreements; fluctuation of operating results, including due to changes in demand, industry cycle and timing of customer deployments, and ability to accurately forecast demand; the attraction, retention and development of skilled management and technical talent; risks associated with the use of artificial intelligence in business operations; changes to relationships with key customers or consolidation among the customer base; compromise, damage or interruption from cybersecurity incidents or other data system security risks; reliance on intellectual property; fluctuations in currency exchange rates; actions by competitors; risks related to Sandisk’s share repurchase program; risks associated with compliance with changing legal and regulatory requirements; and other risks and uncertainties listed in Sandisk’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, to which your attention is directed. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof, and Sandisk undertakes no obligation to update or revise these forward-looking statements to reflect new information or events, except as required by law.

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