Sandisk Corporation

Good afternoon and welcome to SanDisk's third quarter fiscal year 2026 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Ivan Donaldson, Vice President of Investor Relations. Please go ahead.

Before we begin, please note that today's discussion will contain forward-looking statements based on management's current assumptions and expectations, which are subject to various risks and uncertainties. These forward-looking statements, including expectations for our technology and product portfolio, our business plans and performance, our capital allocation priorities, market trends and opportunities, and our future financial results. We assume no obligation to update these statements. Please refer to our annual report on Form 10-K and our other filings with the SEC for more information on the risks and uncertainties that could cause actual results to differ materially from expectations. We will also make references to non-GAAP financial measures today. Reconciliations between the non-GAAP and comparable GAAP financial measures are included in the written materials posted in the investor relations section of our website. With that, I'll turn the call over to David.

Thanks, Ivan. Good afternoon, and thank you for joining Sandisk's fiscal third quarter earnings call. We delivered another strong quarter with excellent performance across all key metrics, reflecting the strength of the Sandisk franchise. Before turning to our end markets, I'd like to provide an update on a priority we previously outlined. Last quarter, we were engaged in discussions with customers on multi-year supply partnerships, what we refer to as new business models, or NBMs. I am pleased to share that we have successfully advanced those conversations with five multi-year partnerships signed so far. These partnerships are structured to lock in committed supply for our customers and committed financials for SanDisk. Our customers' commitments are backed by firm financial guarantees. These partnerships support durable, structurally higher earnings and a significantly more predictable and less cyclical business for SanDisk. We believe this marks a fundamental evolution of our business, which is centered on deeper customer alignment, enhanced visibility, and long-term value creation. These MBMs reflect the strategic value of our world-class NAND technology, which is built on decades of innovation. The investment we've made in R&D and manufacturing, including tens of billions of dollars in cumulative capex and IP, have built the foundation for a powerful new business model in which we manage the full stack, from front-end manufacturing through chip and system-level design to final back-end assembly and test. Both the extension of our joint venture with Kyoksha and the supply agreement for DRAM following our investment in Nanya further strengthen our supply chain resiliency. This leverage is enabling us to drive stronger customer engagement, allowing long-term conversations with partners who value technology performance and long-term supply assurance. With increased engagement in the optionality across the portfolio, we can optimize our end market mix more effectively. Together, these transformations have resulted in a step change in what we believe to be sustainable gross margins, free cash flow generation, and earnings power in a market that we expect to grow in the double digits for the foreseeable future. Data Center is a clear example of this strategy in action. With revenue growing 233% sequentially. This milestone reflects years of preparation and our deliberate shift toward what is now the most strategic and fastest growing end market. While we have made substantial progress, there is significant growth opportunities ahead driven by the fundamental shift in underlying infrastructure requirements of artificial intelligence. We are witnessing extraordinary growth, not just in model size, but in resulting token generation. the duration and complexity of model runs, and the increasing importance of context. As AI models scale from billions to trillions of parameters, and deployments advance from simple inference to deep reasoning and increasingly autonomous agentic systems, NAND has become a critical component of the underlying infrastructure. Inference optimizations, such as KVCache, along with workloads like RAG, require substantial high-performance, low-latency flash to deliver real-time responsiveness and quality of user experience. These workloads expand the amount of data that now needs to be stored on low-latency flash, which is well beyond the model itself, as systems must retain context, intermediate data, and large external data sets. As a result, NAND Flash is emerging as the only economically viable solution to deliver that capacity, performance, and efficiency required to keep models accessible for real-time inference at scale. This shift in understanding the critical nature of our technology comes at a time when our product differentiation is strongest, anchored in what has been recognized as an industry gold standard for NAND technology with BICS-8. and a broad leading portfolio with TLC and QLC offerings. We are confident that our world-class product portfolio and technology leadership will continue to drive data center customers to see SanDisk as a partner of choice over the long term. And we are already seeing that preference translate into results. Our fiscal third quarter revenue was enhanced by strong demand for our TLC-based enterprise SSD portfolio, which powers performance-intensive compute workloads where speed and latency are paramount. Looking ahead to the fiscal fourth quarter, we expect to begin shipping our QLC Stargate solutions for revenue, adding another layer of revenue growth. Together, TLC and QLC serve distinct but complementary roles, reflecting how we are deliberately architecting our portfolio to meet evolving customer needs with our broad portfolio of AI-focused data center products. In Edge, we are seeing a continued shift towards premium devices across both PC and smartphone markets. These platforms are increasingly incorporating on-device capabilities, which are driving higher storage requirements and greater demand for high-performance solutions. As a result, our mix continues to shift to high-value configuration and customers that assign the appropriate value to our technology. Consumers saw strong year-over-year revenue growth across all key storage categories and regions, despite evolving consumer industry dynamics. This performance was supported by our strong brand recognition and channel presence as we focused on the most financially attractive demand. In February, we unveiled our next-generation portable SSD portfolio designed to support faster, more demanding workflows and AI-enabled content creation. This launch reinforced our innovation and leadership in the SSD category, generating meaningful external visibility with coverage across multiple global media outlets. We also continue to strengthen global consumer engagement through new brand-led go-to-market activities, such as our Space to Hold More campaign, which is driving deeper customer connection by localizing global narratives and engaging diverse communities worldwide. Together, these efforts reflect our focus on our end markets and commitment to driving demand through brand recognition, product innovation, and strong go-to-market execution as we shift our portfolio toward higher value opportunities and transition away from legacy upsell models. Our broad end market exposure sets us apart, and we remain committed to serving customers across these markets. With that, I'll turn the call over to Luis to dive deeper into our financial performance and guidance.