SanDisk locks in $93.9B in contracted revenue from just 8 customers

SanDisk just convinced eight customers to commit nearly $94 billion to buying its storage chips over the next several years. The $93.9 billion figure represents minimum contracted revenue at floor pricing across 10 so-called New Business Model (NBM) agreements. These deals cover more than half of the company’s expected bit shipments for fiscal 2027 and approximately two-thirds for fiscal 2028.

The company reported $8.97 billion in revenue for fiscal Q4 2026, a 51% sequential increase. Gross margins came in at 84.6%. Full-year revenue for fiscal 2026 hit $20.25 billion, representing 175% growth year-over-year. The financial guarantees backing these contracts exceed previous commitments, with aggregate backing totaling $16.5 billion.

The NBM contracts have an average duration exceeding four years. By locking customers into multi-year commitments with minimum volume guarantees and floor pricing, the company is trading some upside potential during boom times for downside protection during inevitable downturns. CEO David V. Goeckeler and CFO Luis Visoso have been steering this strategic pivot as AI-driven demand for storage solutions reshapes the semiconductor landscape.

Wall Street chose a negative reaction to the results. Shares dropped on guidance that suggested the company was being conservative about future growth. Shifting to long-term contracts with floor pricing inherently caps the upside in any given quarter, even if it dramatically reduces the risk of revenue collapse.

Eight customers represent the entirety of that $93.9 billion contract book. The contracts cover datacenter and edge computing customers. The NBM framework not only provides customers with supply assurance but also allows SanDisk to retain visibility of demand and margin durability. The initial success seen with three agreements signed in Q3 2026 has expanded into the broader portfolio of 10 agreements reported in the latest earnings call.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.