Sandisk's Data Center Revenue Surpasses a Third of Total Sales in Q4 FY2026
In its fiscal fourth quarter ending July 3, Sandisk reported $2.98 billion in data center revenue—accounting for about one-third of the company’s total sales of $8.97 billion. This marked a significant increase from just $213 million in the same period a year earlier and reflects broader growth across its business since separating from Western Digital in February 2025. The shift is part of Sandisk's strategic pivot toward enterprise customers, particularly data centers, which now represent one-third of revenue after growing for three consecutive quarters. The company’s New Business Model (NBM) includes long-term supply agreements with major clients that provide pricing stability and financial guarantees through deposits or instruments totaling $16.5 billion. Sandisk's profitability also surged in FY2026, driven largely by higher prices rather than volume growth. Gross margin reached 84.6%, up from 26.2% a year earlier, while the company reported net income of $6.9 billion for Q4 and full-year free cash flow of $11.5 billion.
Topics: datacenter growth new business model revenue mix shift