Sandisk Just Guided to Turning Half Its Revenue Into Free Cash Flow Through 2030
The memory maker's new three-year targets look like a peak quarter made permanent -- and $93.9 billion of revenue is already under contract.
Overview
Memory maker Sandisk (NASDAQ: SNDK) held its investor day on Thursday, and management used it to answer the question hanging over the stock all year: What does this business look like once the boom is no longer a surprise?
The company's new financial model for fiscal 2028 through 2030 calls for revenue growth in the mid-to-high teens, non-GAAP (adjusted) gross margins near 80%, operating margins near 75%, and adjusted free cash flow of about 50% of revenue.
Details
Investors liked the answer. Shares jumped about 14% on Thursday and trade near $1,528 as of this writing. Even so, the stock would need to climb more than 50% to revisit its 52-week high of $2,354.39.
Source
Originally published at www.fool.com.