It sometimes can be difficult to justify why a stock is capable of a major move higher—particularly when shares are up more than 500% so far this year. But that’s where we are with SanDisk (SNDK), which is getting a lot of attention from analysts after the company unveiled its long-term financial model.
SanDisk’s financial outlook, which spans from 2028 to 2030, shows that the company expects revenue to grow in the mid-to-high teens, with adjusted gross margins of around 80% and adjusted operating margins of 75%.
The model is intended to alleviate fears that the cyclical nature of memory stocks will lead to a downturn for SanDisk in the coming years—and that the massive revenue gains the company is seeing in 2026 aren’t sustainable.
"As we unveil our new financial model for FY2028 through FY2030, we believe that we have a unique opportunity as we play in a large and fast-growing market with favorable tailwinds and that we are well positioned to capture the opportunity," CFO Luis Visoso said. "We are optimizing for growth, sustainability and returns. As we do that, we expect to return 100 percent of excess cash to our shareholders after investing in the business. 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."
Let’s take a closer look at SanDisk—and why some analysts are projecting the stock still has massive upside.
About SanDisk Stock
SanDisk, which is based in Milpitas, California, is an up-and-coming AI infrastructure stock. The company makes products for flash and advanced memory computer storage and is used in phones, laptops, and smart devices. But the stock is on a historic roll this year—it's the best-performing company in the S&P 500 ($SPX)—because of the demand for memory and storage in data centers.
Shares are up 3,397% over the last year—by comparison, Micron Technology (MU), another memory stock, is up 660% over the same period. So, while the storage and memory sector has been exploding over the last several months, SanDisk’s growth is dwarfing the competition.
Despite all that, shares are still surprisingly affordable. The company’s revenues and profits are going up so quickly that the run-up in stock price hasn’t made SanDisk overvalued (a situation still plaguing companies like Palantir Technologies (PLTR)). SanDisk’s forward price-to-earnings (P/E) ratio is only 7.6, versus 21x for the broader index.
SanDisk Beats on Earnings
SanDisk has had no problem keeping up with analysts' estimates as of late. Earnings for the fiscal fourth quarter (ending July 3) showed revenue of $8.96 billion, up 372% from a year ago. Net income was $6.9 billion, versus a loss of $23 million in the fourth quarter of fiscal 2025, and EPS of $38.82 beat analysts’ expectations for $33.28.
The company’s data center segment continued to deliver triple-digit revenue growth, with the segment’s revenue of $2.97 billion up 103% on a sequential basis. Edge revenue, which includes sales of chips used in client devices such as smartphones and personal computers, also showed strong year-over-year (YoY) growth.
| Segment | Q4 2026 Revenue | Q3 2026 Revenue | Q/Q Growth | FY 2026 Revenue | FY 2025 Revenue | Full-Year Growth |
| Data Center | $2.977 billion | $1.467 billion | 103% | $5.153 billion | $960 million | 437% |
| Edge | $5.432 billion | $3.663 billion | 48% | $12.160 billion | $4.127 billion | 195% |
| Consumer | $556 million | $820 million | (32%) | $2.935 billion | $2.268 billion | 29% |
| Total Revenue | $8.965 billion | $5.950 billion | 51% | $20.248 billion | $7.355 billion | 175% |
Source: SanDisk
"We closed fiscal 2026 with a leading technology portfolio, established data center as a key growth pillar, and deepened our customer partnerships," CEO David Goeckeler said. "Our technology and products are well positioned to create value for our customers and generate growing and durable free cash flow."
The company issued guidance for fiscal first-quarter revenue in the range of $10.3 billion and $10.8 billion, with gross margins in the range of 83% and 84.9%.
What Are Analysts Saying About SNDK Stock?
Analysts have been bullish on SNDK for several months, with the sentiment only getting stronger. But I also found it interesting that since SanDisk issued its long-term financial update on Aug. 13, the sentiment has only increased.
Of 15 analysts who issued new updates on SNDK stock, 13 of them reiterated their “Buy” ratings, and only two had a “Hold” rating. Bank of America’s Mark Newman is one of the most bullish, posting a $3,000 price target that suggests a potential upside of 92%. C.J. Muse of Cantor Fitzgerald has a $2,900 price target, signifying a potential upside of 87%.
The overall consensus from the 24 analysts tracked by Barchart remains a pretty solid “Strong Buy” as well.
The bottom line? SanDisk is projecting a long-term growth window that is helping to erase concerns that memory stocks face a short cycle of profits and revenues. SanDisk appears to have plenty of runway left.
