Sandisk (NASDAQ: SNDK) told investors this month that it has signed New Business Model (NBM) supply agreements worth $93.9 billion in minimum contracted revenue with eight datacenter and edge customers, including three U.S. hyperscalers — a shift that reshapes NAND flash from a commodity trade into a long-dated, contract-driven business.
The deal structure
The engagements run more than four years on average, with the longest at five, and are backstopped by $16.5 billion of financial guarantees, of which $2.9 billion is already in the door as customer deposits and credits. Contracts use a floor-and-ceiling structure: near-term prices are largely fixed while outer-year pricing floats to share upside and downside. Sandisk says half of its 2027 bit output is already committed, rising to two-thirds by 2028.
Q4 numbers that back it up
Fiscal Q4 revenue reached $8.97B, up 51% sequentially and 372% year over year, with non-GAAP gross margin at 84.6%. Datacenter revenue alone jumped 437% year over year. Adjusted free cash flow hit $5.04B in the quarter, and Sandisk guided long-term free cash flow to roughly 50% of revenue through 2030.
Capital return steps up
Alongside the NBM disclosure, Sandisk's board authorized an additional $14B share-repurchase program on top of a $6B authorization from April, bringing remaining buyback capacity to $15.5B — about 8.6% of the company at recent prices. The stock has climbed roughly 615% in 2026 as investors reprice NAND for AI infrastructure alongside memory rivals SK hynix, Samsung and Micron.
Bigger picture for AI storage
Management forecasts flash shipments hitting 1.2 zettabytes in 2026 and a market above $300B this year approaching $500B in 2027. The visibility mirrors similar contract patterns emerging elsewhere in the AI stack — from Broadcom's $60B+ AI chip debt package to Samsung and Broadcom's $200B HBM-and-foundry pact — as hyperscalers try to lock supply years in advance.
Reporting based on coverage from Sandisk Investor Relations, Yahoo Finance and 24/7 Wall St.