Western Digital Corp. (Nasdaq: WDC) today reported fiscal first quarter 2026 financial results for the period ended October 3, 2025.
“Western Digital continues to execute well in a strong demand environment driven by growth of data storage in the cloud. In our fiscal first quarter, we achieved revenue and gross margin above the high end of our guidance range, while delivering strong free cash flow,” said Irving Tan, CEO of Western Digital. “As AI accelerates data creation, Western Digital’s continued innovation and operational discipline position us well to capture new opportunities and drive sustained shareholder value. Reflecting confidence in the company’s strong business momentum, the Board of Directors has increased the quarterly cash dividend on the company’s common stock by 25% to $0.125 per share.”
|
GAAP
|
|
Q1FY26
|
Q4FY25
|
Q1FY25
|
Q/Q
|
Y/Y
|
Revenue
|
$2,818
|
$2,605
|
$2,212
|
+8%
|
+27%
|
Gross Margin
|
43.5%
|
41.0%
|
36.4%
|
+250 bps
|
+710 bps
|
Operating Income
|
$792
|
$680
|
$334
|
+16%
|
+137%
|
Operating Margin
|
28.1%
|
26.1%
|
15.1%
|
+200 bps
|
+1300 bps
|
Diluted Net Income Attributable to
Common Shareholders
|
$1,154
|
$243
|
$149
|
+375%
|
+674%
|
Diluted Net Income Per Share
|
$3.07
|
$0.67
|
$0.42
|
+358%
|
+631%
|
|
Non-GAAP
|
|
Q1FY26
|
Q4FY25
|
Q1FY25
|
Q/Q
|
Y/Y
|
Revenue
|
$2,818
|
$2,605
|
$2,212
|
+8%
|
+27%
|
Gross Margin
|
43.9%
|
41.3%
|
37.3%
|
+260 bps
|
+660 bps
|
Operating Income
|
$856
|
$732
|
$407
|
+17%
|
+110%
|
Operating Margin
|
30.4%
|
28.1%
|
18.4%
|
+230 bps
|
+1200 bps
|
Diluted Net Income Attributable to
Common Shareholders
|
$655
|
$600
|
$262
|
+9%
|
+150%
|
Diluted Net Income Per Share
|
$1.78
|
$1.70
|
$0.75
|
+5%
|
+137%
|
Business Outlook for Fiscal Second Quarter of 2026
“We expect continued revenue growth driven by data center demand, and improved profitability led by the adoption of our high-capacity drives. For our fiscal second quarter of 2026, at the mid-point of the ranges provided in the table below, we expect revenues of $2.9 billion, non-GAAP gross margin of 44.5%, with non-GAAP EPS of $1.88,” said Kris Sennesael, CFO of Western Digital.
|
Non-GAAP(1)
|
Revenue
|
$2.9B +/- $100M
|
Gross margin
|
44% - 45%
|
Operating expenses
|
$365M - $375M
|
Interest and other expense, net
|
~$50M
|
Tax rate
|
~17%
|
Diluted net income per common share
|
$1.88 +/- $0.15
|
Diluted weighted average shares
|
~ 375M
|
(1) We provide earnings guidance only on a non-GAAP basis because certain information necessary to reconcile such guidance to GAAP is difficult to estimate or cannot be allocated or quantified with certainty and is dependent on future events outside of our control. Please refer to the section titled “Non-GAAP Guidance” under “Discussion Regarding the Use of Non-GAAP Financial Measures” in this press release for additional information regarding the non-GAAP measures, including quantification of known expected adjustment items.
Dividend
Western Digital’s Board of Directors declared a cash dividend of $0.125 per share of the company’s common stock, which will be paid on December 18, 2025 to stockholders of record as of the close of business on December 4, 2025.
Western Digital’s Fiscal First Quarter 2026 Conference Call
Western Digital will host a conference call to discuss its fiscal first quarter 2026 results and business outlook for the fiscal second quarter of 2026 today at 1:30 p.m. Pacific / 4:30 p.m. Eastern. The live and archived conference call and the earnings presentation can be accessed online at investor.wdc.com.
About Western Digital
At Western Digital, our vision is to unleash the power and value of data. For decades, we have been at the forefront of storage innovation, which fuels our mission to be the market leader in data storage, delivering solutions for now and the future. We are committed to providing scalable, sustainable technology for the world’s hyperscalers, enterprises, and cloud providers, and delivering cutting-edge innovation that will drive the next generation of AI-driven data workloads. All that we do is powered by our people, who are united in a common purpose of creating solutions that move the world forward. Follow Western Digital on LinkedIn and learn more at www.westerndigital.com.
Basis of Presentation
On February 21, 2025 (the “Separation Date”), Western Digital Corporation (“WDC”) completed the previously announced separation of its Flash business unit into a separate company, Sandisk Corporation (“Sandisk”).
The financial and operating results of Sandisk subsequent to the Separation Date are no longer consolidated into WDC’s financial and operating results. For all periods prior to the Separation Date, the historical results of WDC are reflected on a continuing operations basis with the historical results of Sandisk for such periods reflected as discontinued operations in WDC’s financial highlights and condensed consolidated statements of operations included in this release.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws, including statements regarding expectations for: the company’s business outlook and operational and financial performance for the second fiscal quarter of 2026 and beyond, and demand and market conditions for our products and growth opportunities. 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. Key risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include: adverse global or regional conditions, including new or additional tariffs or trade restrictions; the company’s dependence on a limited number of qualified suppliers; volatility in demand for the company’s products; the impact of business and market conditions, including inflation, increases in interest rates and an economic recession; the outcome and impact of the company’s completed separation of its HDD and Flash businesses; the impact of competitive products and pricing; the company’s development and introduction of products based on new technologies and expansion into new data storage markets; risks associated with cost saving initiatives, restructurings, acquisitions, divestitures, mergers, joint ventures and the company’s strategic relationships; difficulties or delays in manufacturing or other supply chain disruptions; hiring and retention of key employees; the company’s level of debt and other financial obligations; changes to the company’s relationships with key customers; compromise, damage or interruption from cybersecurity incidents or other data system security risks; actions by competitors; any decisions to reduce or discontinue paying cash dividends or repurchasing shares of the company’s common stock; the company’s ability to achieve its greenhouse gas emissions reduction and other sustainability goals; the impact of international conflicts; risks associated with compliance with changing legal and regulatory requirements and the outcome of legal proceedings; and other risks and uncertainties listed in the company’s filings with the Securities and Exchange Commission (the “SEC”), including the company’s Annual Report on Form 10-K filed with the SEC on August 14, 2025 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.
First Quarter Fiscal 2026 Press Release with Financial Tables and Guidance Summary
First Quarter Fiscal 2026 Earnings Presentation
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