Sandisk has signed 10 New Business Model agreements across eight Datacenter and Edge customers that management says represent at least $93.9 billion of expected revenue at floor pricing, creating a multiyear base of committed demand as the flash-memory company seeks to make revenue, production and cash flow considerably more predictable.
The 10 agreements were accumulated rapidly. Sandisk said in its fiscal fourth-quarter 2026 earnings release that it had announced five NBMs during its April earnings call and subsequently signed five additional agreements, consisting of three NBMs with new customers and two agreements that expanded previously signed NBMs.
Those additional agreements brought the company’s NBM relationships to eight distinct Datacenter and Edge customers. The contracts extend for as long as five years and have a weighted-average duration of more than four years.
The most significant financial figure attached to those arrangements is the $93.9 billion minimum expected revenue. Sandisk Chief Financial Officer Luis Visoso said that figure assumes the variable pricing components of the agreements settle at their contractual floors, meaning actual revenue could ultimately exceed the minimum if pricing conditions are more favorable.
The pricing structure combines fixed and variable elements, with the variable portion subject to contractual floors and ceilings. Sandisk expects the NBMs to generate attractive margins even at floor pricing, giving the company downside protection while retaining some participation when NAND market pricing strengthens.
The agreements also provide substantial visibility into Sandisk’s future production commitments. Management expects NBMs to represent more than 50% of the company’s bits in fiscal 2027 and approximately two-thirds in fiscal 2028. That means a majority of near-term production is moving away from purely shorter-term market pricing and toward multiyear customer commitments.
Sandisk’s fiscal 2026 Form 10-K provides additional accounting detail behind the agreements. At July 3, 2026, the company reported $59.8 billion of transaction price allocated to remaining performance obligations, of which $58.7 billion had not yet been billed and $1.1 billion had been recorded as contract liabilities. Sandisk said all of those remaining performance obligations related to NBMs and approximately 19% were expected to be recognized as revenue during the following 12 months.
The SEC filing also disclosed that after the July 3 balance-sheet date, Sandisk signed two additional NBMs carrying an aggregate transaction price of $31.3 billion. Those contracts require customers to purchase specified product volumes over multi-year periods and include financial guarantees designed to protect Sandisk if customers fail to satisfy their contractual purchase commitments.
Management said the quarter-end $59.8 billion remaining performance obligation would have been $91.1 billion if the two post-quarter agreements had been included. The difference between that $91.1 billion pro forma RPO figure and the $93.9 billion minimum expected revenue from all signed NBMs reflects revenue that Sandisk had already recognized.
The contracts also carry significant financial protections. Management said the NBMs collectively include $16.5 billion of financial guarantees through combinations of cash deposits and other financial instruments intended to provide protection if customers fail to meet their purchase obligations.
The 10-K separately shows how some of those protections appear on Sandisk’s balance sheet and outside it. At July 3, contract liabilities primarily associated with NBMs totaled $1.242 billion, while refundable security deposits associated primarily with the agreements produced $1.5 billion of refund liabilities. An additional $5 billion of collateral had been issued or was held by third-party financial institutions, although Sandisk does not recognize that collateral on its balance sheet unless specified customer defaults or breaches occur.
The shift represents an attempt to change the economics of a NAND flash industry that has historically been highly exposed to swings in supply, demand and pricing. Sandisk says NBMs are expected to become its predominant way of doing business, providing better revenue visibility, production planning and supply assurance while reducing certain elements of industry cyclicality.
The size of the $93.9 billion minimum is especially notable compared with Sandisk’s current revenue base. Fiscal 2026 revenue totaled $20.25 billion, up 175% year over year, meaning minimum expected NBM revenue represents more than four times the company’s entire fiscal 2026 sales.
Datacenter has been an important driver behind the transition. Fiscal 2026 Datacenter revenue increased 437% to $5.15 billion from $960 million, while Edge revenue increased to $12.16 billion from $4.13 billion. The company has said rapid AI infrastructure growth is increasing demand for high-performance NAND storage products and expects AI-driven demand to persist through calendar 2027 and beyond.
Sandisk’s financial performance also strengthened sharply during the year. Fiscal 2026 GAAP net income reached $11.43 billion compared with a $1.64 billion loss in fiscal 2025, while the company generated substantial operating cash flow and eliminated its term-loan debt.
The NBM strategy effectively trades some exposure to potentially higher future NAND spot pricing for substantially greater certainty around customer volumes and minimum pricing. With 10 agreements now spanning eight customers, more than half of fiscal 2027 bits expected to be covered and $93.9 billion of minimum expected revenue at floor pricing, the contracts have quickly become one of the largest components of Sandisk’s longer-term financial model.
KEY QUOTES:
“The total expected revenue from all our NBMs we have signed is a minimum of $93.9 billion, assuming floor pricing.”
Luis Visoso, Executive Vice President and Chief Financial Officer of Sandisk
“We closed fiscal 2026 with a leading technology portfolio, established datacenter as a key growth pillar, and deepened our customer partnerships.”
David Goeckeler, Chairman and Chief Executive Officer of Sandisk
