Companies /Technology

Western Digital Corp

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

Q4 2025 Earnings

Reported Jul 30, 2025, 4:14pm ET · SEC source
$1.66
Beat +12.12%
EPS · est. $1.48
$2.6B
Beat +5.33%
Revenue · est. $2.5B
+2.8%
Beating market
WDC vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−4%0+4%Jul 30Jul 31report 4:14pm ETearnings−1.1%+4.6%
−4%0+4%Jul 30Jul 31earnings−1.1%+4.6%
WDC +4.6%S&P 500 −1.1%
−4%0+4%Jul 30Jul 31report 4:14pm ETearnings−1.6%+4.6%
−4%0+4%Jul 30Jul 31earnings−1.6%+4.6%
WDC +4.6%NASDAQ −1.6%
−10%−5%0+5%Jul 29Aug 7report 4:14pm ETearnings−0.7%+0.2%
−10%−5%0+5%Jul 29Aug 7earnings−0.7%+0.2%
WDC +0.2%S&P 500 −0.7%
−10%−5%0+5%Jul 29Aug 7report 4:14pm ETearnings−0.4%+0.2%
−10%−5%0+5%Jul 29Aug 7earnings−0.4%+0.2%
WDC +0.2%NASDAQ −0.4%
+10.16%
Day of report
−2.72%
Next session
−5.40%
One week
+4.09%
30 days

S&P 500 over the same 30 days: +1.30%.

Did WDC Beat Earnings? Q4 2025 Results

Western Digital posted a decisive earnings beat in fiscal Q4 2025, with adjusted EPS of $1.66 clearing the $1.48 consensus estimate by 12.16%, as the newly streamlined HDD-pure-play company demonstrated the operating leverage embedded in its restructured business. Revenue came in at $2.60 billion, down 30.8% year over year, a decline that reflects the February 2025 separation of the Flash unit into standalone Sandisk Corporation rather than any deterioration in underlying demand. The more telling signal was non-GAAP gross margin expanding 610 basis points to 41.3%, with revenue and gross margin both finishing above the high end of guidance. Western Digital also moved aggressively on its balance sheet during the quarter, retiring $2.60 billion in debt and launching a $2.00 billion share repurchase program, actions that helped lift the stock more than 11% following the report. Looking ahead, management guided fiscal Q1 2026 revenue to approximately $2.70 billion, up roughly 22% year over year, with non-GAAP EPS of $1.54, as Cloud demand continues to anchor the company's growth outlook.

Key Takeaways
  • Revenue and gross margin above the high end of guidance
  • Cloud demand as the largest addressable market
  • Gross margin expansion of 610 basis points year over year on non-GAAP basis
  • Strong free cash flow generation of $675 million in Q4
  • AI-driven data infrastructure demand for mass storage

“Western Digital executed well in its fiscal fourth quarter, achieving revenue and gross margin above the high end of our guidance range while delivering strong free cash flow. In addition, during the quarter, we reduced debt by $2.6 billion, initiated a cash dividend, and announced the authorization of a $2.0 billion share repurchase program, reflecting our confidence in the long-term cash generating capability of our business.”

Western Digital CEO, on the earnings call

Forward Guidance & Outlook

For fiscal Q1 2026, Western Digital expects revenue of approximately $2.70 billion (+/- $100 million), representing 22% year-over-year growth at the midpoint. Non-GAAP gross margin is guided at 41%-42%, non-GAAP operating expenses at $370M-$380M, and non-GAAP diluted EPS of $1.54 (+/- $0.15) on approximately 363 million diluted shares. The company sees strong momentum driven by Cloud, its largest addressable market.

WDC YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$2.0B$4.0B$3.8B$2.6BRevenue$1.4B$1.1BGross Profit$216.0M$680.0MOperating Income$39.0M$282.0MNet Income
$0$2.0B$4.0BRevenueGross ProfitOperating IncomeNet Income

WDC Revenue by Segment

Cloud
Consumer
Client

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