Companies /Technology

Western Digital Corp

NASDAQ: WDC Computer Hardware
$450.55
▼ $8.90 (−1.94%) today
Markets closed · 9:25pm ET

Q1 2026 Earnings

Reported Oct 30, 2025, 4:11pm ET · SEC source
$1.78
Beat +12.66%
EPS · est. $1.58
$2.8B
Beat +3.21%
Revenue · est. $2.7B
+15.6%
Beating market
WDC vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−4%0+4%Oct 30Oct 31report 4:11pm ETearnings−0.0%+2.1%
−4%0+4%Oct 30Oct 31earnings−0.0%+2.1%
WDC +2.1%S&P 500 −0.0%
−4%0+4%Oct 30Oct 31report 4:11pm ETearnings+0.0%+2.1%
−4%0+4%Oct 30Oct 31earnings+0.0%+2.1%
WDC +2.1%NASDAQ +0.0%
−12%−6%0+6%Oct 29Nov 7report 4:11pm ETearnings−1.8%+5.6%
−12%−6%0+6%Oct 29Nov 7earnings−1.8%+5.6%
WDC +5.6%S&P 500 −1.8%
−12%−6%0+6%Oct 29Nov 7report 4:11pm ETearnings−3.4%+5.6%
−12%−6%0+6%Oct 29Nov 7earnings−3.4%+5.6%
WDC +5.6%NASDAQ −3.4%
−2.30%
Day of report
+8.75%
Next session
+18.44%
One week
+15.83%
30 days

S&P 500 over the same 30 days: +0.25%.

Did WDC Beat Earnings? Q1 2026 Results

Western Digital kicked off fiscal 2026 with a convincing beat on both lines, its first full quarter as a pure-play hard drive company following the February 2025 spinoff of its flash business into Sandisk. Non-GAAP diluted EPS came in at $1.78, clearing the $1.58 consensus estimate by 12.93%, while revenue of $2.82 billion topped expectations by 3.21%, even as the reported figure reflected a 31.2% year-over-year decline tied to the Sandisk separation. The real story behind the numbers was margin expansion, with non-GAAP gross margin reaching 43.9% and non-GAAP operating margin surging to 30.4% from 18.4% a year ago, driven by accelerating adoption of high-capacity drives in cloud data centers. Free cash flow of $599 million underscored the earnings quality, a dramatic reversal from negative $14 million in the prior-year period. Western Digital has <a href="https://247wallst.com/investing/2025/10/30/western-digital-wdc-beats-estimates-again-despite-sky-high-expectations/">beaten estimates consistently</a>, and management's Q2 guidance of roughly $2.90 billion in revenue and $1.88 in non-GAAP EPS suggests the AI-driven storage demand cycle still has room to run.

Key Takeaways
  • Strong demand environment driven by growth of data storage in the cloud
  • Revenue and gross margin above the high end of guidance range
  • AI accelerating data creation driving storage demand
  • Adoption of high-capacity drives improving profitability
  • 27% year-over-year revenue growth
  • Non-GAAP gross margin expanded 660 basis points year over year to 43.9%
  • Non-GAAP operating margin expanded to 30.4% from 18.4% year over year

“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.”

Western Digital CEO, on the earnings call

Forward Guidance & Outlook

For fiscal Q2 2026, Western Digital expects revenue of approximately $2.9 billion (+/- $100 million), representing approximately 20% year-over-year growth at the midpoint. Non-GAAP gross margin is expected at 44% to 45%. Non-GAAP operating expenses are guided at $365 million to $375 million. Non-GAAP diluted EPS is expected at $1.88 (+/- $0.15) on approximately 375 million diluted shares. The non-GAAP tax rate is expected at approximately 17%. Management expects continued revenue growth driven by data center demand and improved profitability led by adoption of high-capacity drives.

WDC YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$2.0B$4.0B$4.1B$2.8BRevenue$1.6B$1.2BGross Profit$742.0M$792.0MOperating Income$493.0M$1.2BNet 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.