WDC
Western Digital Corporation174.57
+2.54+1.47%
Dec 16, 4:00:00 PM EST
Earnings Call Transcripts
This Quarter (Q4 '25)
No earnings call transcript available yet
Last Quarter (Q3 '25)
FY Q1 '26
Roadmap accelerated, supply disciplined.
Q&A largely reaffirmed prepared remarks on AI-fueled exabyte demand, but management clarified no new unit capacity additions amid tight supply through 2026, with more exabytes online in H2 2027. They pulled forward HAMR qualification to H1 2026 for one hyperscaler, expanding to three, and next-gen ePMR to Q1 2026. Incremental gross margins target ~50% sequentially; exabyte growth trends to 23% CAGR. UltraSMR mix climbs with two more customers qualifying. Supply stays tight. No data center seasonality remains. Watch HAMR reliability and mix shift.
Key Stats
Market Cap
59.84BP/E (TTM)
24.55Basic EPS (TTM)
7.11Dividend Yield
0%Recent Filings
8-K
ESPP boosted by 8M shares
8-K
Feller named CAO
Western Digital appointed Brad Feller as Senior Vice President and Chief Accounting Officer effective November 14, 2025, succeeding Gene M. Zamiska. Feller, with prior CFO stints at Infinera and Marvell, gets $425,000 base salary, 75% target bonus, $300,000 signing bonus, and $1.5M sign-on RSUs vesting over years. Smooth transition. No family ties or special arrangements disclosed.
10-Q
Q1 FY2026 results
Western Digital's Q1 FY2026 revenue jumped 27% y/y to $2.8B, driven by Cloud at 89% of sales surging 31% y/y on higher high-capacity drive shipments and pricing, while gross margin expanded 7.1 points to 43.5%. Operating income rose to $792M from $334M y/y; net income hit $1.2B versus $153M, boosted by a $611M gain on retained Sandisk interest, though net exceeded operating by over 50% due to that item. Diluted EPS of $3.07 reconciles to 376M shares. Operating cash flow reached $672M; free cash flow $599M (derived). Cash sits at $2.0B with $1.25B revolver availability and total debt $4.7B, compliant with covenants. Flash separation completed Feb 2025. Yet top 10 customers command 77% of revenue.
8-K
Q1 revenue up 27%
Western Digital reported fiscal first quarter 2026 results with revenue of $2.82 billion, up 27% year over year, fueled by robust cloud data storage demand. Gross margin hit 43.5% on a GAAP basis, while operating income surged 137% to $792 million, boosted by a $611 million gain on its retained Sandisk interest. The board hiked the quarterly dividend 25% to $0.125 per share. Q2 revenue guidance points to $2.9 billion, up 20% year over year. Strong cash flow powers buybacks.
10-K
FY2025 results
Western Digital's FY2025 delivered robust recovery, with net revenue surging 51% y/y to $9.52B, propelled by Cloud end-market dominance at 88% of sales and 65% y/y growth to $8.34B, fueled by 36% higher units and 20% ASP uplift from high-capacity HDD demand in data centers. Q4 accelerated momentum, contributing $2.61B revenue (13% q/q rise) and $1.07B gross profit (margin at 41%), versus Q3's $2.29B, with sequential improvements in manufacturing efficiencies and no unabsorbed overhead charges—unlike $155M in FY2024. Key drivers included AI-driven cloud expansions, though Client and Consumer segments dipped 4% and 9% y/y on softer demand; liquidity strengthened to $2.11B cash with $1.25B revolver availability, supporting $2.78B debt reduction, $149M buybacks, and $0.10/share quarterly dividends. Yet, tariffs pose risks to quarterly momentum.
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