Short answer
Sandisk (SNDK) filed its fiscal 2026 10-K annual report with the SEC on Aug 17, 2026. It reported revenue of $20.2B (+175.3% year over year) and net income of $11.4B.
- Top risk flagged: Tariff risk under U.S. Section 232 and Section 301 investigations could increase Sandisk’s U.S. product costs, compressing margins and sales due to lost tariff exemptions
FY2026 key financial metrics · XBRL
- Revenue
- $20.2B
- +175.3% YoY
- Net income
- $11.4B
- +796.7% YoY
- Operating margin
- 61.2%
- +79.9 pp YoY
- Gross margin
- 71.5%
- +41.4 pp YoY
- EPS (diluted)
- $73.76
- +751.6% YoY
- ROE
- 72.7%
- +90.5 pp YoY
- Operating cash flow
- $11.7B
- +13794.0% YoY
Source: XBRL data from the Sandisk (SNDK) FY2026 10-K on SEC EDGAR. USD.
Sandisk FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Separation from Western Digital completed Feb 21, 2025; Sandisk now standalone public company trading as "SNDK" on Nasdaq
- Entered 10-year extension (to Dec 31, 2034) on Flash Ventures joint manufacturing agreements with Kioxia, securing supply chain through 2034
- Acquired 48% equity interest in Unisplendour Corp for China market distribution, newly consolidated under equity method accounting
- Global workforce approx 11,100 employees as of July 2026, 74% based in Asia Pacific, reflecting large international presence
- $1.2 billion commitment to Kioxia for wafer supply payments from 2026-2029 as part of extended manufacturing collaboration agreement
Management Discussion & Analysis
- Revenue $20.25B in 2026, up 175% YoY (+$12.89B) driven by Datacenter (+437%, +$4.19B), Edge (+195%, +$8.03B), Consumer (+29%, +$0.67B)
- Gross margin 71.5% in 2026 vs 30.1% in 2025; operating margin 61.3% in 2026 vs (18.7)% in 2025, driven by higher sales, pricing, and no 2026 goodwill impairment
- Best segment: Edge revenue $12.16B, +195% YoY; worst segment: Consumer $2.94B, +29% YoY but declining volumes
- Operating cash flow $11.67B in 2026; repurchased $4.5B stock, $1.9B Term Loan repayment, $177M capex, dividends not disclosed
- Management expects continued AI-driven demand and pricing strength through 2027, but flags U.S. trade tariff risks and evolving tax regulations as uncertainties
Risk Factors
- Tariff risk under U.S. Section 232 and Section 301 investigations could increase Sandisk’s U.S. product costs, compressing margins and sales due to lost tariff exemptions
- Revenue 44% from top 10 customers in 2026, exposing Sandisk to customer consolidation risks that could pressure pricing and volume
- Flash Ventures joint venture requires 50% fixed cost payment regardless of orders, creating risk of heavy charges ($75M underutilization, $24M inventory write-down in 2025)
- Competitor capacity expansions may force aggressive pricing, harming Sandisk’s margins amid rapid technology transition demands and volatile demand
- Revolving credit facility covenants limit dividend payments, share repurchases, acquisitions, and debt incurrence, restricting Sandisk’s financial flexibility
Generated from the filing text; verify against the original. How to read a 10-K
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