SanDisk shares have fallen 51% from their 52-week high of $2,354.39 to $1,150.89, even as the NAND flash maker reported strong financial results and growing demand from data center customers. The figures highlight a gap between the stock’s recent performance and its latest operating results, though the company still faces customer-concentration and consumer-market risks.
For fiscal 2026, revenue increased 175% to $20.25 billion. Fourth-quarter revenue reached $8.97 billion, up 372% from a year earlier, while non-GAAP gross margin hit a record 84.6%. Data center revenue rose 103% sequentially to $2.98 billion, accounting for 38% of bits shipped during the quarter, compared with 12% a year earlier.
By the end of the fiscal fourth quarter, SanDisk had signed eight long-term agreements with data center and edge customers. The deals include $93.9 billion in minimum revenue commitments, backed by $16.5 billion in financial guarantees. They cover more than half of the company’s expected fiscal 2027 bit supply and about two-thirds of fiscal 2028 supply.
SanDisk also reported $5.04 billion in adjusted free cash flow for the fourth quarter, equivalent to a 56% margin. It spent $4.5 billion on share buybacks and had $15.5 billion in remaining authorization. Total debt stood at $201 million at the end of fiscal 2026, down from $2.07 billion a year earlier.
InvestingPro data cited in the report puts SanDisk’s trailing price-to-earnings ratio at 8.4 and its forward ratio at 9.0. Its Fair Value estimate is $1,630.19, or 41.6% above the share price referenced in the report. The publication also notes that 21 of 25 analysts in its cited consensus data rated the stock a Buy, with a mean price target of $2,143.83.
The company’s results come with notable risks. Fourth-quarter consumer revenue fell 32% sequentially to $556 million, while a few large customers account for a significant share of supply commitments. The report also identifies investment by rivals, including Micron, as a competitive factor.
Sources: Investing.com News.