Companies /Technology

Western Digital Corp

NASDAQ: WDC Computer Hardware
$450.55
▼ $8.90 (−1.94%) today
Markets closed · 9:24pm ET

Q3 2025 Earnings

Reported Apr 30, 2025, 8:05am ET · SEC source
$1.36
Beat +22.52%
EPS · est. $1.11
$2.3B
Miss −7.65%
Revenue · est. $2.5B
+12.1%
Beating market
WDC vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0Apr 30May 1report 8:05am ETearnings+1.8%−2.2%
−8%−4%0Apr 30May 1earnings+1.8%−2.2%
WDC −2.2%S&P 500 +1.8%
−8%−4%0+4%Apr 30May 1report 8:05am ETearnings+2.7%−2.2%
−8%−4%0+4%Apr 30May 1earnings+2.7%−2.2%
WDC −2.2%NASDAQ +2.7%
−4%0+4%Apr 29May 8report 8:05am ETearnings+3.1%+2.1%
−4%0+4%Apr 29May 8earnings+3.1%+2.1%
WDC +2.1%S&P 500 +3.1%
−4%0+4%Apr 29May 8report 8:05am ETearnings+4.3%+2.1%
−4%0+4%Apr 29May 8earnings+4.3%+2.1%
WDC +2.1%NASDAQ +4.3%
+7.98%
Day of report
+0.21%
Next session
+1.00%
One week
+18.99%
30 days

S&P 500 over the same 30 days: +6.88%.

Did WDC Beat Earnings? Q3 2025 Results

Western Digital delivered a decisive earnings beat in fiscal Q3 2025, posting Non-GAAP EPS of $1.36 against a consensus estimate of $1.11, a 22.73% beat, even as revenue of $2.29 billion came in 7.65% below analyst expectations. The results mark the company's first full quarter as a pure-play hard disk drive business following the February 2025 spin-off of its Flash segment into Sandisk Corporation. Revenue climbed 30.9% year-over-year, powered almost entirely by Cloud, which contributed $2.01 billion, or 87% of total revenue, driven by robust demand from hyperscale providers and enterprise data centers. Non-GAAP gross margin reached 40.1%, reflecting WDC's improving pricing power in nearline storage. The Board also authorized a $2.0 billion share repurchase program alongside a new quarterly dividend of $0.10 per share, underscoring confidence in the company's standalone trajectory. Looking ahead, Western Digital guided fiscal Q4 revenue to $2.45 billion and Non-GAAP EPS of $1.45, both at the midpoint, signaling sustained momentum in mass-capacity HDD demand despite broader macroeconomic uncertainty.

Key Takeaways
  • Cloud segment represented 87% of total revenue driven by strong product portfolio demand
  • Cloud pricing per unit increased 5% sequentially
  • Year-over-year Cloud bit shipments grew 32%
  • Non-GAAP gross margin exceeded 40%, up 10.0 percentage points year-over-year
  • Completed separation of Flash business into Sandisk on February 21, 2025

“Western Digital executed well in its fiscal third quarter achieving revenue at the high end of our guidance range and gross margin over 40%. Even in a world marked by geopolitical uncertainty and shifting tariff dynamics, one thing remains constant: the exponential growth of data. When it comes to storing that data, at scale, no technology rivals the cost-efficiency and reliability of HDDs. With our rich portfolio of storage products, WD is uniquely positioned to meet our customers' mass storage needs.”

Western Digital CEO, on the earnings call

Forward Guidance & Outlook

For fiscal Q4 2025 (three months ending June 27, 2025), Western Digital expects revenue of $2.45 billion +/- $150 million. GAAP gross margin is expected at 39.5%–40.5%, with Non-GAAP gross margin of 40.0%–41.0%. Non-GAAP operating expenses are guided at $330–$340 million. Non-GAAP diluted EPS is expected at $1.45 +/- $0.20. Non-GAAP tax rate is expected at 8.0%–10.0%, with approximately 360 million diluted shares outstanding.

WDC YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$700.0M$1.4B$2.1B$1.8B$2.3BRevenue$519.0M$912.0MGross Profit$94.0M$760.0MOperating Income$127.0M$520.0MNet Income
$0$700.0M$1.4B$2.1BRevenueGross ProfitOperating IncomeNet Income

WDC Revenue by Segment

Cloud$2.0B+38.0%
Consumer$150.0M−4.0%
Client$137.0M−2.0%

Figures from SEC filings and company reports. Not investment advice.