SanDisk stock rises 7%, company expects adjusted free cash flow margin to remain at 50% in fiscal years 2028-2030

Odaily News: According to MSX.COM data, SanDisk's stock price gains have further expanded, with the latest increase at 7%.

SanDisk, a storage chip manufacturer, said its Chief Financial Officer expects to receive total contract value of $93.9 billion from 8 customers during the contract period. The company projects Non-GAAP gross margin of approximately 80% for fiscal years 2028 to 2030, with non-GAAP operating margin expected to reach approximately 75%. Adjusted free cash flow margin is expected to remain at 50% from fiscal years 2028 to 2030. The company stated that after completing strategic investments and business development needs, it will return 100% of excess cash to shareholders.

SanDisk expects its profitability to further improve with the cyclical recovery of the storage industry and growing demand for high-performance computing (HPC) and AI infrastructure. The company aims to enhance shareholder value through high-margin business operations and capital return strategies. This capital allocation plan indicates that SanDisk will prioritize business expansion and strategic investments in the future, while returning remaining cash to investors through share buybacks, dividends, and other means.