Western Digital Corp. reported fiscal first‑quarter 2026 revenue of $2.82 billion, a 31% decline from the $4.10 billion reported in the same quarter of fiscal 2025. Net income rose to $1.18 billion, operating cash flow reached $672 million, and free cash flow was $599 million. Non‑GAAP earnings per share were $1.78, beating the consensus estimate of $1.58.
Gross margin for the quarter was 43.5%, an increase of 710 basis points from the 36.8% margin recorded in the prior year’s quarter, reflecting higher mix of high‑capacity hard‑disk drives and cost‑control measures.
Revenue from the data‑center segment grew as demand for cloud and AI‑driven workloads increased, while consumer‑segment sales fell, a shift that aligns with the company’s focus on high‑density HDD technology following the separation of its flash business into Sandisk Corporation. The company’s UltraSMR and upcoming HAMR platforms are positioned to capture expanding data‑center storage demand.
Management guided fiscal second‑quarter revenue to $2.90 billion and non‑GAAP EPS to $1.88, both above consensus expectations. The quarterly dividend was raised 25% to $0.125 per share, reinforcing the company’s commitment to shareholder returns.
Western Digital emphasized that operational efficiencies and product‑mix gains have improved profitability and that the company’s strategic shift toward a pure‑play HDD model will sustain near‑term growth momentum.
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