SanDisk Stock Surges 7% as Adjusted Free Cash Flow Margin Targeted at 50% Through 2030

SanDisk shares rise 7% on $93.9B contract outlook and 50% free cash flow margin target through 2030, with plans to return excess capital to shareholders.

Woofun AI reports that SanDisk shares appreciated by 7% recently, following the company's disclosure of expected contracts worth $93.9 billion from eight customers. The CFO indicated that Non-GAAP gross margins are projected to reach approximately 80% and operating margins around 75% for fiscal years 2028 through 2030, while the adjusted free cash flow margin is anticipated to remain at 50%. SanDisk stated that after fulfilling strategic investment and business development requirements, it intends to return 100% of excess cash to shareholders via buybacks and dividends, citing improved storage industry cycles and growing demand for high-performance computing and AI infrastructure as drivers for enhanced profitability.