WDC
Western Digital Corporation174.57
+2.54+1.47%
Dec 16, 4:00:00 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q2 '26
HAMR quals accelerated; UltraSMR mix rises
Q&A largely reaffirmed prepared remarks on AI-driven demand but added color on accelerated HAMR qualifications, already underway this month with one hyperscaler and another imminent, pulling ahead of earlier timelines. UltraSMR mix exceeded 50% in nearline last quarter, rising as top-three customers fully adopt and others follow, boosting capacity uplift and margins accretive at ~75% incremental flow-through. LTAs confirmed to include price alongside volume for stable per-TB pricing. Yields steady in low 90s%. Management stays bullish on inference fueling exabyte growth. HAMR quals started early. Watch Innovation Day for roadmaps.
Key Stats
Market Cap
59.84BP/E (TTM)
24.55Basic EPS (TTM)
7.11Dividend Yield
0%Recent Filings
8-K
Redeemed notes, eliminated preferred
Western Digital eliminated its Series A Convertible Perpetual Preferred Stock via a Delaware filing on February 24, 2026, after full mandatory conversion on February 17. It redeemed all 2.850% Senior Notes due 2029 and 3.100% Senior Notes due 2032 on February 23, funding the Trustee and releasing all liens post other debt repayment. Clean balance sheet ahead.
8-K
Preferred stock fully converted
Western Digital converted all outstanding Series A Convertible Perpetual Preferred Stock into common stock on February 17, 2026, triggering the mandatory conversion option three years after the January 31, 2023 closing. This eliminates preferred dividends while simplifying the capital structure. No conversion price disclosed.
8-K
Notes redeemed in full
Western Digital issued a conditional redemption notice on January 5, 2026, for its entire 4.750% Senior Notes due 2026, followed by full funding deposit with the trustee on February 5, 2026. This satisfied and discharged all obligations under the indenture, releasing guarantors too. Debt fully retired.
10-Q
Q2 FY2026 results
Western Digital's Q2 FY2026 revenue jumped 25% y/y to $3.0B, driven by Cloud at 89% mix up 28% y/y, while gross margin expanded to 45.7% from 37.7% on higher volumes and pricing for high-capacity drives. Operating income rose to $908M; net income hit $1.8B after $1.1B gain on retained Sandisk interest, with diluted EPS $4.73 reconciling to 381M shares. Cash fell to $2.0B after $1.4B repurchases, yet $1.25B revolver available and Term Loan A-3 at 5.3%. Free cash flow not disclosed in the 10-Q. Post-Flash separation, debt stands at $4.7B. Customer concentration ticks up.
8-K
Q2 revenue up 25% Y/Y
Western Digital posted Q2 FY26 revenue of $3.02B, up 25% year-over-year, with GAAP gross margin at 45.7% and non-GAAP EPS of $2.13. Free cash flow hit $653M; they returned over 100% to shareholders via repurchases and dividends. Q3 outlook points to $3.2B revenue, up 40% Y/Y at midpoint. Cash flows strong.
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