SNDK Stock Rallies After SanDisk Maps Out New Multi-Year Growth Plan, Targets 50% Adjusted Free Cash Flow Margin

CFO Luis Visoso said the company plans to return 100% of excess cash to shareholders after investing in the business.

• SanDisk expects revenue to grow in the mid-to-high teens over the next three years, supported by rising demand for AI and data center memory.
• It said long-term agreements with eight customers have made revenue and cash flow more predictable.
• Those agreements cover about half of the company’s expected memory sales next year and nearly two-thirds the following year.

Shares of SanDisk (SNDK) rallied in midday trade on Thursday after the company unveiled a new financial model targeting adjusted free cash flow margins near 50% for fiscal year 2028 through 2030.

CFO Luis Visoso said the company plans to return 100% of excess cash to shareholders after investing in the business. He pointed to the company’s growing number of long-term customer agreements as a key reason for its confidence in future cash flow.

“Our confidence in the sustainability of the model comes from our multi-year NBMs that are based on intimate relationships with our customers and grounded in innovation and collaboration.”

Luis Visoso, CFO, SanDisk

SNDK stock rose more than 13% in midday trade. On Stocktwits, retail sentiment dipped to ‘bullish’ from ‘extremely bullish’ territory over the past day, while chatter fell to ‘low’ from ‘high’ levels. 

SanDisk Sees Strong Revenue Growth Ahead

At its 2026 Investor Day, “SanDisk In Focus,” the company forecast revenue to grow in the mid-to-high teens over the next three years, helped by rising demand for memory from AI and data centers. SanDisk also expects to maintain gross margins of around 80% and operating margins near 75%. It sees operating expenses staying at roughly 5% of revenue.

SanDisk said it’s also changing how it works with customers to make its business less exposed to the sharp ups and downs that have historically affected the memory industry.

The company said it has signed long-term agreements with eight customers that include committed purchase volumes, minimum financial guarantees and structured pricing. Those deals cover about half of the memory bits SanDisk expects to sell next year and nearly two-thirds of its expected sales the following year.

The company said the agreements should make revenue more predictable and give it greater visibility into future cash flow.

AI Could Create A New Memory Opportunity

SanDisk is also betting that the AI boom will create new demand for memory beyond traditional storage. The company highlighted its latest NAND technology, including BiCS9 QLC and BiCS10 QLC, stating that BiCS10 can pack 60% more bits into the same space compared with its previous generation.

The company also said it's developing High Bandwidth Flash (HBF) for AI inference. The technology is designed to help data centers handle the growing amount of information AI models need while generating responses.

SanDisk expects demand for this type of memory to grow rapidly as AI workloads expand. It estimates the enterprise data center flash market could reach 1.2 zettabytes by 2030.

“Our strong performance today is the direct result of disciplined execution against the strategy we outlined 18 months ago,” CEO David Goeckeler said.

SNDK stock has gained over 530% this year and over 3,200% in the last 12 months.

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