10-K · August 14, 2026
Western Digital delivered a strong FY2026 operating recovery, with revenue up 36%, gross margin reaching 48.9% and operating margin reaching 34.5%, supported by Cloud demand, higher-capacity drives and improved pricing.…
Earnings analysis · 10-Q
WDC earnings analysis
Filed October 22, 2026 · Our reading of the company's report
The latest report
Western Digital delivered a strong quarter, with $4.381 billion of revenue and $4.64 of diluted EPS exceeding consensus by approximately 5.7% and 14.3%, respectively. Free cash flow reached $1.377 billion, and the…
Read full summary
Western Digital delivered a strong quarter, with $4.381 billion of revenue and $4.64 of diluted EPS exceeding consensus by approximately 5.7% and 14.3%, respectively. Free cash flow reached $1.377 billion, and the company repurchased 2.2 million shares. Management's Q2 FY27 outlook calls for $5.0 billion-$5.2 billion of revenue and $5.60-$6.00 of non-GAAP EPS, although the filing provides no prior outlook for determining a raise or cut. The principal balance-sheet and market risks are the $650 million of variable-rate debt and the modeled $81 million foreign-exchange loss under a 10% adverse currency move; management stated that there were no material changes to the risk factors disclosed in the 2026 Form 10-K.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $4.64
What stood out
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Revenue and EPS beat estimates
Reported revenue was $4.381 billion and diluted EPS was $4.64, exceeding consensus estimates of $4.144 billion and $4.06 by approximately 5.7% and 14.3%, respectively.
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Strong free cash flow
Free cash flow was $1.377 billion, supporting continued capital returns and liquidity despite reported cash-balance pressure.
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Continued share repurchases
The company repurchased 2.2 million shares during the quarter, including 2.0 million under the publicly announced program; $2.259 billion remained available under that program at quarter-end.
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Positive next-quarter outlook
Management provided Q2 FY27 revenue outlook of $5.0 billion-$5.2 billion and non-GAAP EPS outlook of $5.60-$6.00, indicating sequential growth from reported revenue of $4.381 billion and EPS of $4.64.
What to watch
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Higher variable-rate debt exposure
Variable-rate debt exposure increased interest-rate sensitivity: the Revolving Credit Facility had an outstanding balance of $650 million, and a 1% increase in rates would raise annual interest expense by $7 million.
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Foreign-currency risk
Foreign-currency volatility remains material: a hypothetical 10% adverse move in exchange rates would produce an estimated foreign-exchange fair-value loss of $81 million.
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Liquidity and capital-return demands
Capital returns and liquidity require monitoring: the company repurchased 2.2 million shares during the quarter, while $2.259 billion remained authorized under the repurchase program and the filing notes that repurchases are principally funded by operating cash flows.
Management's outlook
The report's Q2 FY27 outlook is $5.0 billion-$5.2 billion of revenue and $5.60-$6.00 of non-GAAP EPS. No prior company outlook was provided for comparison; the filing does not establish whether guidance was raised, maintained, or lowered.
Earlier filings 4
10-Q · April 30, 2026
Western Digital's Q3 FY2026 results show a strong performance with revenue of $3.34 billion and EPS of $2.72, surpassing estimates. Notable revenue and profit growth driven by demand in the cloud and hyperscale markets,…
10-Q · January 30, 2026
Western Digital reported a strong quarter: net revenue of $3,017.0M (up from $2,409.0M in the prior-year quarter) with gross margin expanding to 45.7% and operating income of $908M. Diluted EPS from continuing…
10-Q · January 31, 2025
Western Digital reported a strong quarter: net revenue of $4,285 million and GAAP net income of $594 million (diluted EPS $1.63) for the three months ended December 27, 2024, versus a net loss of $(287) million in the…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.