Western Digital (WDC) Q1 2027 Earnings
How Did WDC Stock React to Q1 2027 Earnings?
Did WDC Beat Earnings? Q1 2027 Results
Yes. Western Digital reported Q1 2027 earnings of $4.64 a share on Oct 22, 2026, beating the $4.08 consensus estimate by 13.8%. Revenue was $4.4B against a $4.1B estimate.
Western Digital delivered a blowout fiscal first quarter for 2027, putting to rest any concerns from <a href="https://247wallst.com/investing/2026/10/22/live-will-western-digitals-q1-earnings-tonight-reverse-a-brutal-24-selloff/">a brutal prior selloff</a> with results that cleared the bar on every major metric. Adjusted EPS of $4.64 beat the $4.08 consensus by 13.81%, extending the company's streak of consensus EPS beats to six consecutive quarters, while revenue of $4.38 billion topped estimates by 5.87% and surged 55.5% year over year. The headline driver was a dramatic expansion in profitability, with non-GAAP gross margin climbing to 58.1% from 43.9% a year ago, reflecting improved pricing and strong exabyte demand across the company's storage business. Free cash flow more than doubled to $1.38 billion, enabling $1.00 billion in share repurchases during the quarter alone. Looking ahead, management guided fiscal Q2 revenue to approximately $5.10 billion and non-GAAP EPS to $5.80, plus or minus $0.20, signaling continued momentum as demand for storage infrastructure tied to artificial intelligence workloads broadens.
- Robust exabyte growth and improved pricing
- 55% year-over-year revenue growth
- Non-GAAP gross margin expansion to 58.1% from 43.9% year over year
- Non-GAAP operating margin expansion to 49.1% from 30.4% year over year
- 161% year-over-year increase in non-GAAP EPS
“Fiscal 2027 is off to a strong start, with results exceeding expectations, driven by robust customer demand and disciplined execution. In our fiscal first quarter, revenue grew 55% year over year, non-GAAP gross and operating margins expanded to 58.1% and 49.1%, respectively, resulting in a 161% year-over-year increase in non-GAAP EPS. Reflecting our confidence in the business and our commitment to return capital to shareholders, we are raising our quarterly cash dividend by 17% to $0.175 per share.”
Western Digital CEO, on the earnings call
What Is Western Digital's Outlook?
For fiscal Q2 2027, WD expects revenue of approximately $5.1 billion (+/- $100 million), representing 66%–72% year-over-year growth. Non-GAAP gross margin is expected at 60%–61%, non-GAAP operating expenses of $400–$410 million, non-GAAP interest and other expense of approximately $15 million, a non-GAAP tax rate of approximately 17%, and non-GAAP diluted EPS of $5.80 (+/- $0.20) on approximately 380 million diluted shares.
WDC YoY Financials
| Metric | Q1 2027 | Q1 2026 | Year over year |
|---|---|---|---|
| Revenue | $4.4B | $2.8B | +55.5% |
| Gross Profit | $2.5B | $1.2B | +106.5% |
| Operating Income | $2.0B | $792.0M | +158.3% |
| Net Income | $1.8B | $1.2B | +50.5% |
WDC Revenue by Segment
When Does Western Digital Report Next?
Figures from SEC filings and company reports. Not investment advice.