Memory maker Sandisk (NASDAQ: SNDK) held its investor day on Thursday, and management used it to answer the question hanging over the stock all year: What does this business look like once the boom is no longer a surprise? The company's new financial model for fiscal 2028 through 2030 calls for revenue growth in the mid-to-high teens, non-GAAP (adjusted) gross margins near 80%, operating margins near 75%, and adjusted free cash flow of about 50% of revenue. This Rare Signal Is Flashing Again.
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Shares jumped about 14% on Thursday and trade near $1,528 as of this writing. Even so, the stock would need to climb more than 50% to revisit its 52-week high of $2,354.39. A company converting half its revenue into free cash would rank among the most profitable large businesses in the world.
Whether investors can trust the targets is another matter. The targets land differently once you set them beside what Sandisk just reported. A year ago, this business ran a 26.2% gross margin and roughly broke even.
In the fiscal fourth quarter, revenue reached $8.97 billion, up 372% year over year, and gross margin hit 84.6%. Fiscal 2026 as a whole (the fiscal year ended July 3, 2026) captured the shift. Revenue climbed 175% year over year to $20.25 billion, and net income totaled $11.43 billion, or $73.76 per share.
Adjusted free cash flow was $8.7 billion -- about 43% of revenue, and a figure that already strips out roughly $2.5 billion of customer prepayments. And management expects more in the near term. Its guidance puts fiscal first-quarter revenue between $10.3 billion and $10.8 billion, with non-GAAP earnings per share in a $44-to-$46 range.
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