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Fiscal Second Quarter 2026 Financial Results Quarter ended January 2, 2026 January 29, 2026
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©2026 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED “START” “REPEAT” “1988/2026” 00.02 Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of U.S. federal securities laws, including, but not limited to, statements regarding expectations for: Sandisk Corporation’s (the “Company’s”) business outlook and operational and financial performance for the fiscal third quarter of 2026 and beyond; the Company’s market positioning; the alignment of the Company’s technology and product portfolios with evolving market dynamics; the Company’s ability to manage a balanced portfolio; the strategic importance of the Company's products in powering global technology infrastructure; supply and demand dynamics for the Company’s products; the qualifications and performance of the Company's products; the Company's s trategic decisions and expectations for growth and profitability; and the Company's ability to deliver industry-leading financial and business performance. These forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. The preliminary financial results for the Company’s second quarter ended January 2, 2026 included in this presentation represent the most current information available to management. Actual results when disclosed i n the Company’s Form 10-Q may differ from these preliminary results as a result of the completion of the Company’s financial closing procedures; final adjustments; completion of the review by the Company’s indep endent registered accounting firm; and other developments that may arise between now and the filing of the Company’s Form 10-Q. Other key risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include: adverse changes in global or regional economic conditions, including the impact of evolving trade policies, tariff regimes and trade wars; volatility in demand for the Company’s products; pricing trends and fluctuations in average selling prices; inflation; changes in interest rates and a potential economic recession; future responses to and effects of global health crises; the impact of business and market conditions; the impact of competitive products and pricing; the Company’s development and introduction of products based on new technologies and management of technology transitions; risks associated with strategic initiatives, including restructurings, acquisitions, divestitures, cost saving measures and joint ventures; risks related to product defects; difficulties or delays in manufacturing or other supply chain disruptions; our reliance on strategic relationships with key partners, including Kioxia Corporation; the attraction, retention and development of skilled management and technical talent; risks associated with the use of artificial intelligence in our business operations; the Company’s level of debt and other financial obligations; changes to the Company’s relationships with key customers or consolidation among our customer base; compromise, damage or interruption from cybersecurity incidents or other data system security risks; our relia nce on intellectual property; fluctuations in currency exchange rates; actions by competitors; risks associated with compliance with changing legal and regulatory requirements; future material impairments in the value of our goodwill and other long-lived assets; our ability to achieve some or all of the expected benefits of the separation from Western Digital Corporation (“WDC”); and other risks and uncertainties listed in the Company’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, to which your attention is directed. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update or revise these forward-looking statements to reflect new information or events, except as required by law. Non-GAAP Measures This presentation includes references to Non-GAAP financial measures. Reconciliations of the differences between the Non-GAAP measures provided in this presentation to the most comparable GAAP financial measures are included in the appendix and in the Investor Relations section of our website. We have not fully reconciled our Non -GAAP financial measures guidance to the most directly comparable GAAP measures because material items that impact these measures are not in our control and/or cannot be reasonably predicted. Acco rdingly, a full reconciliation of the Non-GAAP financial measures guidance to the corresponding GAAP measures is not available without unreasonable effort.
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©2026 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED “START” “REPEAT” “1988/2026” 00.03 Fiscal Second Quarter Executive Summary 1. See Appendix for GAAP to Non-GAAP Reconciliations. Corporate • Sandisk’s technology and product portfolios intersect changing market dynamics at the perfect moment, positioning the company to manage a balanced portfolio and deliver industry-leading financial performance. Financial Results1 Revenue of approximately $3.0 billion Bit Shipments: up low single digits ASP/Gigabyte: up mid 30% Non-GAAP Diluted Net Income per Share of $6.20 Non-GAAP Gross Margin of 51.1% Adjusted Free Cash Flow of $843 million Cash and Cash Equivalents of $1.5 billion In millions 0% 10% 20% 30% 40% 50% 60% $ 0 $ 500 $ 1,000 $ 1,500 $ 2,000 $ 2,500 $ 3,000 Q2F25 Q3F25 Q4F25 Q1F25 Q2F26 Revenue Non-GAAP Gross Margin %
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©2026 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED “START” “REPEAT” “1988/2026” Business Highlights Datacenter End Market • Datacenter revenue was up 64% sequentially, driven by strong adoption among AI infrastructure builders, semi-custom customers, and technology companies deploying AI at scale. • Completed qualification of our PCIe Gen5 high-performance TLC drives at a second hyperscaler. • On track to complete qualification at additional hyperscalers over the coming quarters, with BiCS8 TLC solutions soon thereafter. • Stargate continues advancing through qualification with two major hyperscalers; expected to begin shipping for revenue within the next several quarters. Edge End Market • Demand meaningfully exceeded supply. • Replacement cycles and AI adoption across PCs and mobile devices drove richer configurations and higher storage content per device. • Operating in an allocation environment, we are prioritizing mission-critical customer needs and optimizing product mix within available supply, ensuring best long-term returns across the portfolio. 00.04
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©2026 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED “START” “REPEAT” “1988/2026” Business Highlights (cont'd) Consumer End Market • Product mix shifted toward premium products and higher-value configurations, supporting storage content growth and profitability. • Introduced a breakthrough in the USB form factor with the launch of Sandisk Extreme Fit – Sandisk’s smallest high- capacity USB-C flash drive, delivering a differentiated “stay-put” solution for PCs and smartphones. • Expanded key licensing initiatives with global household names – Crayola and FIFA – bringing full circle the commitments underscored last February with the debut of colorful SANDISK Crayola USB-C flash drives and officially licensed FIFA World Cup 2026 products. • Introduced the Sandisk Optimus lineup at CES 2026, rebranding WD_BLACK and WD Blue NVMe SSDs to sharpen brand architecture and reinforce performance leadership. 00.05
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©2026 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED “START” “REPEAT” “1988/2026” 00.06 Revenue Trends by End Market Datacenter ConsumerEdge Revenue $440 million Increased 64% QoQ Revenue $1,678 million Increased 21% QoQ Revenue $907 million Increased 39% QoQ In millions In millions In millions $ 0 $ 100 $ 200 $ 300 $ 400 $ 500 Q2F25 Q3F25 Q4F25 Q1F25 Q2F26 $ 0 $ 300 $ 600 $ 900 $ 1,200 $ 1,500 $ 1,800 Q2F25 Q3F25 Q4F25 Q1F25 Q2F26 $ 0 $ 200 $ 400 $ 600 $ 800 $ 1,000 Q2F25 Q3F25 Q4F25 Q1F25 Q2F26
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©2026 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED “START” “REPEAT” “1988/2026” Non-GAAP Financial Results(1) Q2'25 Q1'26 Q2'26 QoQ YoY Revenue $1,876 $2,308 $3,025 up 31% up 61% Gross Margin % 32.5% 29.9% 51.1% up 21.2 ppt up 18.6 ppt Operating Expenses $376 $446 $413 down 7% up 10% Operating Income $233 $245 $1,133 up 362% up 386% Interest and Other Expense, net $(26) $(42) $(34) down 19% up 31% Diluted Net Income per Share $1.23 $1.22 $6.20 up 408% up 404% Operating Cash Flow $95 $488 $1,019 up 109% up 973% Adjusted Free Cash Flow $91 $448 $843 up 88% up 826% ($ in millions, except for Diluted Net Income per Share) 1. See Appendix for GAAP to Non-GAAP Reconciliations. 00.07
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©2026 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED “START” “REPEAT” “1988/2026” ~ ~ 00.08 Gross and Cash Capital Expenditure Trends and Plan Quarter Ended January 2, 2026 Revenue, net $3,205 Sandisk share of JV Gross CapEx $216 Funding mechanisms: External funding $(34) Sandisk wafer purchases (tool depreciation) $113 CapEx funding $79 Sandisk share of JV Cash CapEx (front-end) $137 Purchases of PP&E (backend and offices) $39 Total Sandisk Cash CapEx $176 % of revenue, net 5.8% Total Sandisk Gross CapEx $255 % of revenue, net 8.4% • JV Gross CapEx fluctuates based primarily on node transitions and aligning supply with demand. • JV Gross CapEx is funded through a mix of external (e.g., subsidies, leasing, vendor terms) and internal sources (e.g., tool depreciation in COGS). • External sources was a ($34M) use of cash mainly from faster payments to our vendors to reduce overall cost. • Sandisk’s share of JV Cash CapEx and PP&E purchases comprise total Cash CapEx, net. • The majority of the fiscal 2026 CapEx is to support BiCS8 technology investments. In millions
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©2026 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED “START” “REPEAT” “1988/2026” Fiscal ThirdQuarter Guidance GAAP Non-GAAP(1) Revenue ($M) $4,400 to $4,800 $4,400 to $4,800 Gross Margin 64.9% to 66.9% 65.0% to 67.0% Operating Expenses ($M) $496 to $532 $450 to $470 Interest and Other Expense, net ($M) $23 to $28 $25 to $30 Tax Expense ($M)(2) N/A $325 to $375 Diluted Net Income per Share N/A $12.00 to $14.00 Diluted Shares Outstanding (in millions) ~157 ~157 1. Non-GAAP gross margin guidance excludes stock-based compensation expense and expense for short-term incentives granted in connection with the separation, totaling approximately $3 million to $5 million. The Company’s Non-GAAP operating expenses guidance excludes stock-based compensation expense and expense for short-term incentives granted in connection with the separation, totaling approximately $46 million to $62 million. The Company’s Non-GAAP interest and other expenses, net guidance excludes the accretion of the present value discount on consideration receivable from the sale of an interest ina subsidiary, totaling approximately $2 million. In the aggregate, Non-GAAP diluted net income per share guidance excludes these items totaling $47 million to $65 million. The timing and amount of these charges excluded from Non-GAAP gross margin, Non-GAAP operating expenses, Non-GAAP interest and other expenses, net, and Non-GAAP diluted net income per share cannot be further allocated or quantified with certainty. Additionally, the timing and amount of additional charges the Company excludes from its Non-GAAP diluted net income per share are dependent on the timing and determination of certain actions and cannot be reasonably predicted. Accordingly, full reconciliations of Non-GAAP gross margin, Non-GAAP operating expenses, Non-GAAP interest and other expenses, net, and Non-GAAP diluted net income per share to the most directly comparable GAAP financial measures (gross margin, operating expenses, and diluted net income per share, respectively) are not available without unreasonable effort. 2. Non-GAAP tax expense is determined based on a Non-GAAP pre-tax income or loss. Our estimated Non-GAAP tax expense may differ from our GAAP tax expense (i) due to differences in the tax treatment of items excluded from our Non-GAAP net income or loss; (ii) due to the fact that our GAAP income tax expense or benefit recorded in any interim period is based on an estimated forecasted GAAP tax expense for the full year, excluding loss jurisdictions; and (iii) because our GAAP taxes recorded in any interim period are dependent on the timing and determination of certain GAAP operating expenses. 00.09
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©2026 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED “START” “REPEAT” “1988/2026” 00.010 Joint Venture Operational Framework Co-develops flash (including process technology and memory design) with Kioxia and contributes IP for Flash Ventures’ use Owns and leases equipment for flash wafer production and R&D line Co-develops flash (including process technology and memory design) with Sandisk and contributes IP for Flash Ventures’ use Performs integral manufacturing and R&D functions at Flash Ventures’ manufacturing sites Purchases wafers from Kioxia at cost under foundry agreements Performs integral manufacturing and R&D functions at Flash Ventures’ manufacturing sites Purchases Flash Ventures’ wafers at cost plus a small markup Sells wafers to Sandisk and Kioxia at cost plus a small markup Purchases Flash Ventures’ wafers at cost plus a small markup Pays Flash Ventures’ expenses (including equipment depreciation and lease expense) Charges expenses to Sandisk and Kioxia (including equipment depreciation and lease expense) Pays Flash Ventures’ expenses (including equipment depreciation and lease expense) Funds Flash Ventures’ equipment purchases (via loans, equity and lease guarantees) in excess of Flash Ventures’ operating cash flow Borrows from Sandisk and Kioxia for a portion of their equipment purchases Funds Flash Ventures’ equipment purchases (via loans, equity, and lease guarantees) in excess of Flash Ventures’ operating cash flow Repays loans for equipment purchases using excess operating cash flow Owns and operates cleanrooms Provides wafer manufacturing services to Flash Ventures at cost Flash Ventures 49.9% Owned by Sandisk 50.1% Owned by Kioxia
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“START” “REPEAT” “1988/2026”
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©2026 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED “START” “REPEAT” “1988/2026” 00.012 Appendix
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©2026 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED “START” “REPEAT” “1988/2026” GAAP to Non-GAAP Reconciliations In millions; unaudited Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Revenue 1,876 1,695 1,901 2,308 3,025 GAAP Gross Profit $606 $382 $498 $687 $1,541 Stock-based compensation expense 3 3 4 4 5 Non-GAAP Gross Profit $609 $385 $502 $691 $1,546 00.013 In millions; unaudited Q2'25 Q1'26 Q2'26 GAAP operating expenses $411 $511 $476 Stock-based compensation expense (45) (49) (53) Business separation costs (21) (9) (9) Employee termination and other (3) 3 (1) (Gain) loss on business divestiture 34 (10) — Non-GAAP operating expenses $376 $446 $413
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©2026 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED “START” “REPEAT” “1988/2026” GAAP to Non-GAAP Reconciliations (cont'd) In millions; unaudited Q2'25 Q1'26 Q2'26 GAAP Operating Income $195 $176 $1,065 Gross profit adjustments 3 4 5 Operating expense adjustments 35 65 63 Non-GAAP Operating Income $233 $245 $1,133 GAAP Interest and Other Expense, Net $(22) $(52) $(128) Other, net (4) 10 94 Non-GAAP Interest and Other Expense, Net $(26) $(42) $(34) GAAP Income Tax Expense $69 $12 $134 Income tax adjustments (40) 10 (2) Non-GAAP Income Tax Expense $29 $22 $132 00.014
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©2026 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED “START” “REPEAT” “1988/2026” In millions, except per share amount; unaudited Q2'25 Q1'26 Q2'26 GAAP net income $104 $112 $803 Stock-based compensation expense 48 53 58 Business separation costs 21 9 9 Employee termination and other 3 (3) 1 (Gain) loss on business divestiture (34) 10 — Other, net (4) 10 94 Income tax adjustments 40 (10) 2 Non-GAAP net income $178 $181 $967 Diluted Net Income per Share GAAP $0.72 $0.75 $5.15 Non-GAAP $1.23 $1.22 $6.20 Diluted Weighted Average Shares Outstanding: GAAP 145 149 156 Non-GAAP 145 149 156 00.015 GAAP to Non-GAAP Reconciliations (cont'd)
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©2026 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED “START” “REPEAT” “1988/2026” In millions; unaudited Q2'25 Q1'26 Q2'26 Cash Flows Cash flow provided by operating activities 95 488 1,019 Purchases of property, plant and equipment, net (48) (50) (39) Free Cash Flow $47 $438 $980 Activity related to Flash Ventures, net 44 10 (137) Adjusted Free Cash Flow $91 $448 $843 00.016 GAAP to Non-GAAP Reconciliations (cont'd)
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©2026 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED “START” “REPEAT” “1988/2026” GAAP to Non-GAAP Reconciliations (cont'd) FOOTNOTES This presentation contains the following financial measures that are not in accordance with U.S. generally accepted accounting principles (“GAAP”): Non-GAAP gross profit; Non-GAAP operating expenses; Non-GAAP operating income; Non-GAAP interest and other expense, net; Non-GAAP income tax expense; Non-GAAP net income; Non-GAAP diluted net income per share; Non-GAAP diluted weighted average shares outstanding; Free cash flow; and Adjusted free cash flow (collectively, the “Non-GAAP measures”). These Non-GAAP measures are not in accordance with, or alternatives for, measures prepared in accordance with GAAP and may be different from similarly titled Non-GAAP measures used by other companies. The Company believes the presentation of these Non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provides useful information to investors for measuring the Company’s earnings performance and comparing it against pri or periods. Specifically, the Company believes these Non-GAAP measures provide useful information to both management and investors as they exclude certain expenses, gains and losses that the Company belie ves are not indicative of its core operating results or because they are consistent with the financial models and estimates published by many analysts who follow the Company and its peers. As discussed further below, these Non-GAAP measures exclude, as applicable, stock-based compensation expense, business separation costs, employee termination and other, loss on business divestiture, other adjustments, and income tax adjus tments. The Company believes these measures, along with the related reconciliations to the most directly comparable GAAP measures, provide additional detail and comparability for assessing the Company’s results. These Non-GAAP measures are some of the primary indicators management uses for assessing the Company’s performance and planning and forecasting future periods. These measures should be considered in addit ion to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. As described above, the Company excludes the following items from its Non-GAAP measures: Stock-based compensation expense. Because of the variety of equity awards used by companies, the varying methodologies for determining stock -based compensation expense, the subjective assumptions involved in those determinations and the volatility in valuations that can be driven by market conditions outside the Company’s control, the Company believes excluding stock-based compensation expense enhances the ability of management and investors to understand and assess the underlying performance of the business over time and compare it against the Company’s peers, a majority of whom also exclude stock-based compensation expense from their Non-GAAP results. Business separation costs. On October 30, 2023, WDC announced that its board of directors (the “WDC Board of Directors”) authorized management to purs ue a plan to separate the Company into an independent public company. The separation received final approval by the WDC Board of Directors and was completed on February 21, 2025. Prior to February 21, 2025, the Company was wholly-owned by WDC. As a result of the plan, the Company incurred separation and transition costs through the completion of the separation of the companies. The separa tion and transition costs are recorded within Business separation costs in the Condensed Consolidated Statements of Operations. The Company believes these charges do not reflect the Company’s operating re sults and that they are not indicative of the underlying results of its business. Employee termination and other. From time to time, in order to realign the Company’s operations with anticipated market demand, the Company may terminate empl oyees and/or restructure its operations. From time to time, the Company may also incur charges from the impairment of long-lived assets. In addition, the Company may record credits related to gains upon sale of property due to restructuring or reversals of charges recorded in prior periods as well as from taking actions to reduce the amount of capital invested in facilities, including the sale-leaseback of facilities. These charges or credits are inconsistent in amount and frequency, and the Company believes they are not indicative of the underlying performance of its business. 00.017
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©2026 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED “START” “REPEAT” “1988/2026” GAAP to Non-GAAP Reconciliations (cont'd) (Gain) loss on business divestiture. In connection with the Company’s strategic decision to outsource the manufacturing of certain components and assemblies, on September 28, 2024, the Company completed the sale of 80% of its equity interest in one of its manufacturing subsidiaries. On September 25, 2025, the Company entered into an Amendment No. 1 to the Amended and Restated Equity Purchase Agreement that included a $10 million provision for working capital support. The Company recognized the adjustment as a Loss on business divestiture fo r the three months ended October 3, 2025. The overall transaction resulted in a discrete gain, which the Company believes is not indicative of the underlying performance of its ongoing business operations. Other adjustments. From time to time, the Company incurs charges or gains that the Company believes are not a part of the ongoing operation of its business. For the three and six months ended January 2, 2026, Other adjustments include charges for the settlement of certain previously existing legal matters and the impairment of an in vestment, partially offset by a gain upon sale of an investment. The resulting expense or benefit is inconsistent in amount and frequency. Income tax adjustments . Income tax adjustments include the difference between income taxes based on a forecasted annual Non -GAAP tax rate and a forecasted annual GAAP tax rate as a result of the timing of certain Non-GAAP pre-tax adjustments. The income tax adjustments also include the re-measurement of certain unrecognized tax benefits primarily related to tax positions taken in prior quarters, including interest. These adjustments are excluded because the Company believes that they are not indicative of the underlying performance of its ongoing business. Additionally, Free cash flow is defined as cash flows provided by (used in) operating activities less purchases of property, plant and equipment, net, and Adjusted free cash flow is defined as free cash flow plus the activity related to Flash Ventures, net. The Company considers Free cash flow and Adjusted free cash flow generated in any pe riod to be useful indicators of cash that is available for strategic opportunities, including, among others, investing in the Company’s business, making strategic acquisitions, repaying debt and strengthening the balance sheet. In addition, Gross Margin is calculated by dividing Gross Profit by Revenue. Non- GAAP Gross Margin is calculated by dividing non-GAAP Gross Profit by Revenue. 00.018