Western Digital Reports Fiscal Second Quarter 2026 Financial
Results

Q2FY26 Highlights:

• Revenue of $3.02 billion, up 25% year over year

• GAAP gross margin of 45.7%; non-GAAP gross margin of 46.1%

• GAAP diluted EPS of $4.73; non-GAAP diluted EPS of $2.13

• Cash flow from operations of $745 million; free cash flow of $653 million

• Q3FY26 revenue expected to be up approximately 40% year over year at mid-point

Western Digital Corporation (Nasdaq: WDC) today reported fiscal second quarter 2026 financial results for the period ended January 2, 2026.

“Western Digital’s strong performance this quarter reflects our disciplined execution to meet demand in the AI-driven data economy, and the confidence our customers place in our ability to deliver reliable, high-capacity HDDs at scale,” said Irving Tan, CEO of Western Digital. “In our fiscal second quarter, we delivered strong revenue growth and gross margin expansion. During the quarter, free cash flow generation continued to be strong, and we returned over 100% of our free cash flow to shareholders in the form of share repurchases and dividend payments.”

Business Outlook for Fiscal Third Quarter of 2026

“Our business continues to strengthen. We expect strong revenue growth and improved profitability driven by continued data center demand and by the adoption of our high-capacity drives. For our fiscal third quarter of 2026, at the mid-point of the ranges provided in the table below, we expect revenues of $3.2 billion, non-GAAP gross margin of 47.5%, with non-GAAP EPS of $2.30,” said Kris Sennesael, CFO of Western Digital.

⁽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 March 18, 2026 to stockholders of record as of the close of business on March 5, 2026.

Western Digital’s Fiscal Second Quarter 2026 Conference Call

Western Digital will host a conference call to discuss its fiscal second quarter 2026 results and business outlook for the fiscal third 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 fiscal third 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.

Second Quarter Fiscal 2026 Press Release with Financial Tables and Guidance Summary

Second Quarter Fiscal 2026 Earnings Presentation

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