SanDisk: Minimum Expected Revenue from Signed Agreements Stands at $93.9 Billion, with Actual Revenue Expected to Exceed This Amount

During its earnings conference call, SanDisk stated that it has signed New Business Model (NBM) agreements with a total of eight data center and edge computing customers. This reflects customer confidence in their long-term demand and validates SanDisk's market position. The company expects that by fiscal year 2027 (July 2026 – June 2027), NBM agreements will account for more than 50% of its total bit production capacity, rising to approximately two-thirds by fiscal year 2028 (July 2027 – June 2028).

Specifically, the terms of these NBM agreements vary, with a maximum duration of up to five years and a weighted average term of over four years. The pricing structure includes both fixed and floating components, with the floating portion subject to both price floors and ceilings. Based on the price floors, the minimum expected revenue from all signed agreements totals $93.9 billion, and actual revenue is expected to exceed this amount. Furthermore, certain NBM agreements include financial guarantees totaling $16.5 billion, comprising a combination of cash deposits and financial instruments. These guarantees are designed to protect SanDisk in the event that customers fail to fulfill their contracted procurement obligations.