Sandisk expands buyback to $15.5 billion
Analysis based on 6 articles · First reported Aug 10, 2026 · Last updated Aug 12, 2026
The expanded buyback signals strong cash generation and management confidence, supporting Western Digital — Sandisk's stock price. However, investors remain skeptical about the sustainability of memory pricing, as the stock trades at a low forward P/E, reflecting concerns that earnings may decline.
Western Digital — Sandisk reported fiscal Q4 2026 results and announced a major expansion of its share repurchase program. The board approved an additional $14 billion buyback, bringing total remaining authorization to $15.5 billion, which could retire about 8.6% of outstanding shares. The company's revenue surged 372% year-over-year to $8.97 billion in Q4, with gross margin expanding to 84.6%. Full-year revenue rose 175% to $20.2 billion, and net income swung to $11.4 billion from a $1.6 billion loss. Operating cash flow reached $11.7 billion, and the company paid off its long-term debt. Western Digital — Sandisk also signed additional New Business Model agreements, securing multiyear supply contracts with a minimum revenue floor of $93.9 billion. Management guided Q1 revenue to $10.3-$10.8 billion and adjusted EPS of $44-$46. The buyback is expected to be funded by operating cash flows, but the company noted it can suspend the program if memory prices roll over.
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