Sandisk (SNDK) official guidance

The higher inventory levels reduce sellable bits to mid-teens for the full year, fiscal year 2027.

Consistent with our long-term objective of growing supply mid to high teens, our capital spending will increase year over year, primarily as we ramp BiCS8 and BiCS10.

Yet our investment relative to revenue will come down to approximately 6% for the full year.

We expect first quarter non-GAAP EPS between $44-$46, assuming 155 million fully diluted shares.

We expect first quarter non-GAAP EPS between $44-$46, assuming 155 million fully diluted shares.

We expect non-GAAP gross margins between 83%-85%.

We expect our NBMs to represent more than 50% of our bits in fiscal year 2027 and approximately 2/3 of our bits in fiscal year 2028.

We expect non-GAAP operating expenses between $520 million-$540 million, as we continue to invest in innovation and R&D and have higher expenses related to taxes on employee stock compensation.

For the first quarter of fiscal year 2027, we expect revenue between $10.3 billion-$10.8 billion, with sequential growth driven by both bit growth and higher pricing.

| Diluted Shares Outstanding | ~ 155 | ~ 155 |

| Tax Expense (2) | N/A | 15.0% |

| Gross Margin | 83.0% - 84.9% | 83.0% - 85.0% |

| Operating Expenses | $574 - $614 | $520 - $540 |

| Revenue | $10,300 - $10,800 | $10,300 - $10,800 |

| Revenue | $10,300 - $10,800 | $10,300 - $10,800 |

We forecast non-GAAP EPS between $30 and $33, assuming 158 million fully diluted shares.

We forecast non-GAAP EPS between $30 and $33, assuming 158 million fully diluted shares.

Our forecast for non-GAAP gross margin is between 79% and 81%.

We expect non-GAAP interest and other income between $10 million and $30 million and non-GAAP tax expenses between $775 million and $875 million.

We expect non-GAAP operating expenses between $480 million and $500 million as we continue to invest in innovation and R&D.

For the fourth quarter, we forecast revenue between $7,750 million-$8,250 million from both bits growth and higher pricing.

We expect non-GAAP interest and other income between $10 million and $30 million and non-GAAP tax expenses between $775 million and $875 million.

| Diluted Shares Outstanding | ~ 158 | ~ 158 |

| Gross Margin | 78.9% - 80.9% | 79.0% - 81.0% |

| Interest and Other Income (Expense), Net | $12 - $32 | $10 - $30 |

| Interest and Other Income (Expense), Net | $12 - $32 | $10 - $30 |

| Operating Expenses | $523 - $558 | $480 - $500 |

| Revenue | $7,750 - $8,250 | $7,750 - $8,250 |

We expect bits to be down mid-single digits due to a lower than historical seasonality as we benefit from accelerating strength in data center.

We forecast non-GAAP EPS for the third quarter between $12 and $14, assuming 157 million fully diluted shares.

We forecast non-GAAP EPS for the third quarter between $12 and $14, assuming 157 million fully diluted shares.

Our forecast for non-GAAP gross margin for the third quarter is between 65% and 67%.

We expect non-GAAP interest and other expenses between $25 million and $30 million and non-GAAP tax expenses between $325 and $375 million.

For the third quarter, we expect non-GAAP operating expenses between $450 million and $470 million.

For the third quarter, we expect revenue between $4.4 billion-$4.8 billion.

We expect non-GAAP interest and other expenses between $25 million and $30 million and non-GAAP tax expenses between $325 and $375 million.

| Diluted Shares Outstanding | ~157 | ~157 |

| Gross Margin | 64.9% to 66.9% | 65.0% to 67.0% |

| Interest and Other Expense, Net | $23 to $28 | $25 to $30 |

| Operating Expenses | $496 to $532 | $450 to $470 |

| Revenue | $4,400 to $4,800 | $4,400 to $4,800 |

BiCS8 which delivers industry-leading capacity, I/O performance, and energy efficiency, accounted for 15% of total bits shipped and is expected to reach majority of bit production exiting fiscal year 2026.

We forecast non-GAAP EPS for the second quarter between $3 and $3.40, assuming 155 million fully diluted shares.

We forecast non-GAAP EPS for the second quarter between $3 and $3.40, assuming 155 million fully diluted shares.

We expect to generate positive free cash flow in the second quarter despite capital investments to enable the Big Sage transition, which is expected to be our most significant note by the end of the fiscal year.

Our forecast for non-GAAP gross margin for the second quarter is between 41% and 43% from higher pricing and cost tailwinds.

We expect non-GAAP interest and other expenses between $40 million and $45 million, and non-GAAP tax expenses between $80 million and $90 million.

For the second quarter, we expect non-GAAP operating expenses between $450 million and $475 million.

For the second quarter, we expect revenue between $2,550 million and $2,650 million due to double-digit price increases and mid-single-digit bid growth.

This estimate includes an expected $30 million in startup costs.

We expect non-GAAP interest and other expenses between $40 million and $45 million, and non-GAAP tax expenses between $80 million and $90 million.

| Diluted Shares Outstanding (in millions) | ~ 155 | ~ 155 |

| Diluted Shares Outstanding (in millions) | ~ 155 | ~ 155 |

| Gross Margin | 40.8% to 42.8% | 41.0% to 43.0% |

| Interest and Other Expense, Net ($M) | $38 to $43 | $40 to $45 |

| Operating Expenses ($M) | $497 to $538 | $450 to $475 |

| Revenue ($M) | $2,550 to $2,650 | $2,550 to $2,650 |

| Revenue ($M) | $2,550 to $2,650 | $2,550 to $2,650 |