Western Digital 8-K
PositiveEarningsNew guidance
Growing storage demand and operational execution lifted margins; gains on the retained Sandisk stake boosted GAAP earnings.
Filed 2026-08-05 16:04 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q4FY26 and FY2026 results with Q1FY27 guidance. Revenue rose 44% Y/Y in Q4 and 36% for the year; operating income and free cash flow also increased. GAAP net income includes large gains on WD’s retained Sandisk interest, while non-GAAP results exclude those gains. Q1FY27 guidance is non-GAAP.
Key Figures
| Metric | Q4FY26 | Q4FY25 | Y/Y |
|---|---|---|---|
| Revenue | $3.75B | $2.61B | +44% |
| Operating income, GAAP | $1.56B | $680M | +130% |
| Operating income, non-GAAP | $1.66B | $732M | +126% |
| Diluted net income attributable to common shareholders, GAAP | $3.20B | $243M | +1215% |
| Diluted net income attributable to common shareholders, non-GAAP | $1.38B | $600M | +130% |
| Diluted EPS, GAAP | $8.21 | $0.67 | +1125% |
| Diluted EPS, non-GAAP | $3.56 | $1.70 | +109% |
| Operating cash flow | $1.39B | $746M | +86.1% |
| Free cash flow | $1.28B | $675M | +89.8% |
| Metric | FY2026 | FY2025 | Y/Y |
|---|---|---|---|
| Revenue | $12.9B | $9.52B | +36% |
| Operating income, GAAP | $4.45B | $2.33B | +91% |
| Operating income, non-GAAP | $4.82B | $2.33B | +107% |
| Diluted net income attributable to common shareholders, GAAP | $9.30B | $1.60B | +481% |
| Diluted net income attributable to common shareholders, non-GAAP | $3.88B | $1.77B | +120% |
| Diluted EPS, GAAP | $24.28 | $4.45 | +446% |
| Diluted EPS, non-GAAP | $10.22 | $5.02 | +104% |
| Operating cash flow | $3.93B | $1.69B | +132% |
| Free cash flow | $3.51B | $1.43B | +145% |
- Gross margin expanded: Q4 GAAP 54.1% and non-GAAP 54.4%, each up 1,310 bp Y/Y; FY GAAP 48.9% and non-GAAP 49.1%, up 1,010 bp and 970 bp, respectively. Management cited growing storage demand, innovation and operational execution.
- GAAP results include a $2.05B Q4 and $6.50B FY gain on WD’s retained Sandisk interest. Cash flows are consolidated and include Sandisk through the 2025 separation.
- FY repurchases were $2.59B vs $149M in FY2025. At 7/3/2026, cash was $1.58B and debt carrying value was $1.05B. WD declared a $0.15/share dividend, payable 9/17/2026 to holders of record 9/8/2026.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue, non-GAAP outlook | Q1FY27 | $4.1B ± $100M; Y/Y growth of 42%-49% | — | — |
| Gross margin, non-GAAP | Q1FY27 | 55%-56% | — | — |
| Operating expenses, non-GAAP | Q1FY27 | $390M-$400M | — | — |
| Interest and other expense, net, non-GAAP | Q1FY27 | ≈$15M | — | — |
| Tax rate, non-GAAP | Q1FY27 | ≈17% | — | — |
| Diluted EPS, non-GAAP | Q1FY27 | $4.00 ± $0.15 | — | — |
| Diluted weighted average shares, non-GAAP | Q1FY27 | ≈388M | — | — |
Investor Takeaways
- Q1FY27 revenue, non-GAAP gross margin and non-GAAP EPS versus the guided ranges will show whether the demand and margin trends continued.
The summary is written by an AI model reading the filing.
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