Sandisk targets 80% gross margins via new business models

Sandisk Corporation has introduced new multi-year business models designed to secure approximately $93.9 billion in minimum revenue. These models aim to provide greater demand visibility and allow the company to retain manufacturing cost reductions.

Through these structural changes, Sandisk is targeting sustainable gross margins of 80% and adjusted free cash flow margins of 50%. The company intends to use disciplined supply growth and customer forecasts to align production with demand, mitigating risks of overproduction and margin erosion.