Sandisk's Data Center Revenue Surpasses One Third of Total Sales
In its fiscal fourth quarter ending July 3, Sandisk reported $2.98 billion in data center revenue—accounting for one-third of the company’s total sales of $8.97 billion. This marks a dramatic increase from just $213 million in the same period last year and reflects broader transformation since its separation from Western Digital in February 2025. The growth is driven by Sandisk's New Business Model (NBM), which includes multiyear supply agreements with major data center clients. These contracts, some lasting up to five years, include fixed pricing floors and variable ceilings backed by $16.5 billion of customer deposits. The company expects these NBMs to cover half its bit shipments in fiscal 2027 and two-thirds by 2028. Despite the shift toward data centers, Sandisk’s edge business—selling storage for PCs, smartphones, gaming consoles, and cars—remains larger at $5.43 billion in Q4 revenue. However, consumer products like memory cards now represent just 6% of sales.
