Research Reports

Q3 FY2026 revenue $3.3B, up 45% YoY, above high end of guidance (CFO)
Gross margin 50.5%, up 1,040 bps YoY and 440 bps sequentially (CFO)
EPS $2.72, nearly double YoY (CFO)
Exabytes shipped 222 EB, up 34% YoY; includes 4.1M ePMR drives (118 EB) up to 32 TB (CFO)
Cloud revenue $3.0B (89% of total), up 48% YoY (CFO)
Consumer revenue $186M (6%), up 24% YoY; Client revenue $179M (5%), up 31% YoY (CFO)
Operating income $1.3B, up 116% YoY; operating margin 38.6%, up 1,260 bps YoY (CFO)
Free cash flow $978M; CapEx $145M; free cash flow margin 29% (CFO)
Debt reduced by $3.1B via SanDisk share monetization; net cash position $450M; 1.7M SanDisk shares remaining (CFO)
Capital return: $2.2B returned since Q4 FY2025; dividend increased 20% to $0.15/share (CFO)
Total RPO contract duration extends into calendar 2028 and 2029 (CEO)
Official guidance (Q4 FY2026): Revenue $3.65B ± $100M (40% YoY at midpoint); gross margin 51%-52%; EPS $3.25 ± $0.15; opEx $385M-$395M; tax rate 16%; diluted share count 385M (CFO)

"Gross margin exceeded 50%, driven by our continued innovation and focus on improving total cost of ownership... These results underscore our commitment to leading-edge innovation and strong execution." (CEO)
"Every token, every prompt and every query answered and checkpoint saved creates data that requires persistent, scalable and cost-efficient storage. And the majority of this data is stored on hard disk drives." (CEO)
"One leading hyperscalers LLM processes over 16 billion tokens per minute via direct API used by their customers, while another AI company processes over 2.5 billion prompts every single day from 900 million active users." (CEO)
"We are delivering on major aerial density improvements, along with a focus on performance innovation with our high-bandwidth drives." (CEO)
"We are returning all the excess free cash flow back to the shareholders through a combination of our dividend program and share buyback program." (CFO)